Contracts
In Pennsylvania, what is the 'mailbox rule' and how does it affect real estate contract formation?
AA rule requiring all real estate contracts to be mailed to PREC within 30 days
BAn acceptance is effective when dispatched (mailed), not when received by the offeror — though modern practice typically specifies when acceptance is effective✓ Correct
CA Pennsylvania MLS rule requiring listings to be mailed to all member brokers
DA rule requiring delivery to the buyer's mailbox for proper service of contract documents
Explanation
The mailbox rule (acceptance effective on dispatch) provides that a contract is formed when the acceptance is properly dispatched — not when it is received. In traditional contract law, acceptance mailed in response to a mailed offer is effective upon mailing. In Pennsylvania real estate, most contracts specify when acceptance is effective (upon receipt, upon delivery, upon email transmission). Given the modern use of electronic execution, parties typically specify when acceptance is deemed communicated to avoid mailbox rule uncertainties.
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