Post-Box Law
Essay Preview: Post-Box Law
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Case # 1
The contract between Grand Island Development and Onshore Construction is in fact a valid contract by the means of the Post Box Rule. This rule states that once a document enters the postal service, accepting an offer, becomes a valid contract. The Charity dinner that they both presidents attend was on September 10th where Onshore Construction made a bid of $250,000, which was rejected immediately by Grand Island Development where they stated their price of $300,000 was firm. On September 23rd, Onshore accepted the offer via mail, in which the letter entered the postal service at. Three days later Grand Island Development accepted another offer from Cottage Contracting LTD. Since the letter entered the postal service on the 23rd, and the contract by Cottage Contracting LTD was accepted on the 26th, makes this a valid contract for Onshore Construction following the Post-Box Rule.
Case #3
Silver Mining wanted to sell both of the mines that they owned. They sent a contact to Amalgam to sell both of their mines for $3M, in which on June 22nd Amalgam refused the offer and made a bid of $2M for one of the mines. Silver Mining got back to Amalgam on the 28th stating if they do find a buyer for the other mine; they will in fact sell them separately. On July 6th, Amalgam contact Silver Mining and asked them if they had found another buyer for the second mine, in which Amalgam responded “no”. Between the 6th-15th of July Amalgam sent ecologist to the mines and found out that the mines were worth far more then the asking price so Amalgam on the 15th accepted the offer of buying both mines at $3M, but on the 16th Silver Mining had received another accepting offer for 1 of the mines for 1.2M from another company. This is where the problem occurs, but by the Post-Box rule, Silver Mining and Amalgam have a binding contract and Silver Mining must honor that contract although they did not hear from Amalgam until after the other offer was accepted.
Case #4
In this, Hilary and Hal signed a legally binding contract in which they knew that the company would not be accountable for any problems that would occur. They willingly signed the contract in which makes it a valid offer, therefore the offer came from the rafting company, and Hilary and Hal accepted it. There was negligence on part of the rafting