BBG 231 Lecture Notes - Lecture 28: Tunxis Community College, Rescission, Quasi-Contract

• School: Tunxis Community College
• Department: Business – General
• Course: BBG 231
• Professor: Dillon

Document Summary

Bilateral contract: in order for there to be a binding contract in a bilateral contractual situation, the acceptance must be communicated to the offeror or his agent. When the parties deal face to face or even over the telephone, the time when communication occurs presents little problem. When the parties communicate by mail, telegraph, etc. the situation may present problems. As a general rule, if the offeree accepts in a method authorized by the offeror, the contract is formed when the acceptance is placed in control of the transmitting agency. Mailbox rule : if mail is an acceptable means of communicating an acceptance, the acceptance is communicated when it is placed in control of the postal authorities. Ex: a contract is formed the moment the acceptance is dropped in the mailbox , even of the offeror never receives the acceptance (mail lost, etc. ) May be bound by contract and not know it.