TOPIC: Acceptance

CASE: Adams v. Lindsell, 1 Barnewall and Alderson 681, In the King's

Bench (1818)
FACTS: Lindsell (P) was a dealer in wool. Adams (P) was a wool
products manufacturer. D sent P an offer in the mail for P to purchase
wool. The offer was addressed to the wrong county (UK). The offer
stated is was open if acceptance received "in due course of the post."
(I.e., 4 weekdays, in 19th Century UK.) The offer was sent September 2.
Due to the mistake of address, P received the offer September 5. P
mailed his acceptance the same day. D received the acceptance on
September 9. D had already sold the wool on September 8.
HISTORY: County of Worcester court found for P. D appealed.
ISSUE: Does an acceptance become effective when it is received by the
offeror, or then posted by the offeree?
RULING: Posted. Decision of county affirmed. Consequential damages
awarded to P.
RATIONALE: The acceptance is "made" or becomes effective when
posted through an authorized mode of communication. The postal
service is de facto an authorized mode, unless the offer states otherwise.
A mistake by a party to a K will be taken against the party making the
mistake. (D, in this case.)
RULE: (A.k.a., the "Mailbox Rule): An acceptance to an offer becomes
effective when posted.

DICTA: Without this rule, the court doubts contracts executed through
the mail would be possible.
FOOTNOTE: Restatement of K's Section 56 requires the offeree to
employ diligence in communicating acceptance to the offeror. In the
Mailbox Rule, this means First Class postage, postage must be correct,
and address must be correct.
FOOTNOTE 2: A powerful exception is an Option K. This would read
something like this: "We will hold this offer open until we hear from
you, and then you can excercise your acceptance at that point."
(Obviously, Option K's acceptances are effective on RECEIPT.)
FOOTNOTE 3: Acceptances in Civil Law jurisdictions are usually
effective upon receipt.