Contracts Corner: The Mailbox Rule - When Is Your Contract Accepted?

Source: Robin Roth, Senior Contracts Editor, Conferon, Inc.
E-Specs: August 13, 2001

Acceptance of an offer is one of the legal requirements of a contract. If a hotel sends you a contract signed by them, you make no changes to it, sign it and send it back to the hotel, is your contract "accepted" by the hotel when the salesperson receives it - or when you send it? You may be surprised to learn that according to contract law the contract is binding when you sign it and put it in the mailbox, unless the contract states otherwise. The contract can spell out the terms of acceptance, but if the contract is silent about acceptance and you sign and mail it per the above scenario, be sure that you alert the hotel salesperson that it has been mailed. The contract could be delayed or lost in the mail, and the hotel might resell the space and be faced with a double booking.

(Note: This information is not intended to be "legal advice." A qualified attorney should be consulted to review all contract issues.)