Morrison v. Thoelke
- P owned land in FL. D mailed a contract to P to purchase the land.
- P executed the contract and mailed it to D's attorney.
- After mailing the contract, but prior to its receipt by D, P called D and cancelled the contract.
- Lower court found for P, contract was cancelled before acceptance.
- FL COA reversed, found for D, acceptance was valid and contract was formed.
- When is a contract complete and binding? Is acceptance given when the letter of acceptance is mailed by the offeree or when the letter of acceptance is received by the offeror?
- Acceptance is given and the contract is complete and binding when the offeree mails the acceptance to the offeror. Receipt is not necessary.
- From Williston, if the mailing of an acceptance completes the contract, what happens thereafter, whether the death of either party, the receipt of a revocation or rejection, or a telegraphic recalling of the acceptance, though occurring before the receipt of the acceptance, will be of no avail.
- Even if the offeree regains possession of the letter from the post office, the contract has been completed.
- From Corbin, the contract is regarded as made at the time and place that the letter of acceptance is put into the possession of the post office department.
- There is an obvious concern with establishing some point at which a contract is deemed complete; if communication of each party's assent were necessary, negotiations would be interminable.
- In either case, one of the parties will be bound by the contract without being actually aware of that fact.
- One of the parties must carry the risk of loss and inconvenience.
- The offeror is the one who has invited the acceptance.