Your Ask Joey ™ Answer

What is the mailbox rule?

The mailbox rule, also known as the posting rule, is a default rule under contract law. The mailbox rule basically says that an offer is considered accepted when the acceptance is communicated. This could be through email or placed in the mailbox to be sent.

The example below shows how this rule can cause some confusion.

However, there are exceptions to the rule if outlined in the offer. The offer can state that the agreement has to be received by a certain date, and simply putting it in the mailbox does not formalize the agreement. For example, if the arrangement said that the acceptance must be received by April 4th, then if the acceptance is received on April 5th, then no contract was formed.


Back To All Questions

You might also be interested in...

  • Three Reasons to Become an Accountant

    If you’re someone who is intrigued by numbers, enjoys problem-solving and wants to help others, then accounting might be the perfect career for you. While some people may be put off by its unalluring reputation, accounting is an excellent career choice that has many benefits. In this article, we look at three of the reasons...

  • Qualified Retirement Planning: Tax Advantages & Disadvantages

    Home Advantages and Disadvantages of Tax-Free and Deferred-Tax Retirement Plans What are “qualified retirement plans” and how can they be effective for tax planning? Well, there are plenty of tax savings advantages to individuals contributing to tax-free retirement accounts, as well as tax-deferred retirement accounts. However, this doesn’t necessarily mean that there are no disadvantages...

  • CPA Evolution Survival Guide

    Download Your eBook by selecting the download icon in the top right-hand corner