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Contract Law Question!!

Post by apollo13 » Mon Mar 22, 2010 10:20 pm

I am doing a contract law problem on a textbook, Im stuck and i need help.
Basic premise of it goes:
Offeror of the contract died a day after he sent out revocation letter to offeree to revocate the his own offer, and the offeree sent out "acceptance letter of the contract" couple of hours before Offeror died.
Therefore timeline goes like this
1) Offeror sends out RECOVATION LETTER
2) Offeree sends out acceptance letter which is effective upon dispatch
3) Couple of hours after Offeree sent out the accepting letter, Offeror DIED in a car accident.
Is there a contract...?
My guess is that although offeree sent out an acceptance letter, the offeror died in a car accident. Theres no parties remaning for further negotiation or theres no contrtact... I dunno... im just mumbling help me out!!


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Re: Contract Law Question!!

Post by johnjayjohn » Mon Mar 22, 2010 10:27 pm

Even though the offeror died, the acceptance letter was effective at dispatch (if it was a conforming acceptance, and it is a jurisdiction which follows the Mailbox Rule). This means that regardless of the offeror's death, his estate is bound to the contract, and thus the offeree can have a cause of action against his estate.

However, if the acceptance was non-conforming (a counter-offer in fact or sent in a method not authorized by the offer) OR the jurisdiction does not follow the Mailbox rule and acceptances only become effective upon reception - then there is no contract and the offeree has no cause of action against the estate.

Hope this helps... just going off memory from last semester.

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