Which theory is applied as the general rule to determine where and when a contract has been concluded?

Question: Which theory is applied as the general rule to determine where and when a contract has been concluded?

The receipt theory is the general rule applied to determine where and when a contract has been concluded. This theory holds that a contract is formed when the acceptance is received by the offeror. This is regardless of the method of communication used, whether it is oral, written, or electronic.

The receipt theory is based on the principle that the offeror should be able to control the moment when the contract is formed. This is because the offeror is the one who makes the offer and specifies the terms of the contract. The offeree, on the other hand, simply has the option to accept or reject the offer.

The receipt theory is also based on the principle of certainty. It is easier for the parties to determine when and where a contract was formed if they use the receipt theory. This is because the parties can simply look at the time and date on the offeror's receipt of the acceptance.

There are a few exceptions to the receipt theory. For example, the receipt theory does not apply if the offeror specifies that the acceptance must be received before the contract is formed. Additionally, the receipt theory may not apply in certain types of contracts, such as insurance contracts.

Here is an example of how the receipt theory works:

• Offeror makes an offer to offeree by email.
• Offeree receives the offer email and decides to accept.
• Offeree clicks "send" to send their email acceptance.
• The contract is formed when the offeror receives the offeree's acceptance email.

Even if the offeree's acceptance email is delayed or lost, the contract is still formed under the receipt theory. This is because the offeree has done everything that is required of them to accept the offer.

The receipt theory is the general rule applied to determine where and when a contract has been concluded because it is fair, efficient, and certain.

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