In accordance with which theory, is a contract concluded when and where the offeree posts his or her letter of acceptance?
Question: In accordance with which theory, is a contract concluded when and where the offeree posts his or her letter of acceptance?
A contract is concluded when and where the offeree posts his or her letter of acceptance in accordance with the expedition theory of contract formation.
The expedition theory is a common law theory of contract formation that holds that a contract is formed when the offeree dispatches their acceptance. This is in contrast to the declaration theory, which holds that a contract is formed when the offeror receives the offeree's acceptance.
The expedition theory is based on the principle that the offeree should be in control of the process of contract formation. The offeree should be able to accept the offer at any time before they dispatch their acceptance, and the offeree should not be bound by the contract until they have dispatched their acceptance.
The expedition theory is also based on the principle of convenience. It is more convenient for the parties to the contract to know when the contract was formed by looking at the date on the offeree's letter of acceptance, rather than having to wait for the offeror to receive the letter of acceptance.
The expedition theory is the majority rule in the United States and England. However, there are some exceptions to the expedition theory. For example, the expedition theory does not apply if the offeror specifies that the acceptance must be received before the contract is formed.
Here is an example of how the expedition theory works:
- Offeror makes an offer to offeree by letter.
- Offeree receives the offer letter and decides to accept.
- Offeree posts their letter of acceptance.
- The contract is formed when the offeree posts their letter of acceptance.
Even if the offeror never receives the offeree's letter of acceptance, the contract is still formed under the expedition theory. This is because the offeree has done everything that is required of them to accept the offer.
The expedition theory is a fair and efficient way to form contracts. It gives the offeree control over the process of contract formation and it provides convenience for both parties to the contract.
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