On May 1, Melforth Realty Company offered to sell Green acre to Dallas, Inc., for $1 Million. The offer was made by a letter sent overnight delivery and stated that the offer would expire on May 15. Dallas decided to purchase the property and sent a letter by registered first-class mail to Melforth on May 10 accepting the offer. As a result of unexplained delays in the postal service, the letter was not received by Melforth until May 22. Melforth wished to sell Greenacre to another buyer who is offering $1.2 million for the tract of land. Has a contract resulted between Melforth and Dallas? Solution Yes, a contract has been formed. Offeror - Melforth Realty Company Offeree- Dallas Communication- letter and registered first class mail For a contract to be formed, Acceptance of an offer and communication to offeror are necessary. Here the problem is with communication. • An acceptance is effective when it is sent, i.e. upon dispatch. • As per the rule -effective moment: acceptance by dispatch, an acceptance is generally effective upon dispatch, when an authorized means of communication is used. If an unauthorized means is used, the acceptance occurred only when received by the offeror if it was received within the time during which the authorized means would have arrived. Authorized means- historically, it is the one that is used by the offeror or one that is mentioned in the offer. But due to different modes of communication developed, The Restatement and the Code now offers a broader definition of authorized means- any reasonable means to communicate, unless the offer stipulates otherwise As a General rule – acceptance of offer must be communicated to offeror. Registered mail is an authorized means of communication. Here the offeror has not mentioned any specific medium. There are no stipulated provisions in the offer, such as Hence the offeree is impliedly authorized to use any reasonable means of communication. Hence registered mail, a reasonable means of communication, is considered as an authorized medium as per the restatement by code. By the general rule, the offer becomes accepted by effective moment: acceptance by dispatch. Note: Even though registered mail is not the same as letter, we consider this as reasonable means and hence authorized because it satisfies two criteria Since it is authorized means, the offer stands accepted at the time of dispatch( even though it reached late). But unauthorized means will be acceptred only based on time of receipt (if they reach later than the time taken for a authorized means , they will not be accpeted)..

1. On May 1, Melforth Realty Company offered to sell Green acre to Dallas, Inc., for $1 Million.
The offer was made by a letter sent overnight delivery and stated that the offer would expire on
May 15. Dallas decided to purchase the property and sent a letter by registered first-class mail to
Melforth on May 10 accepting the offer. As a result of unexplained delays in the postal service,
the letter was not received by Melforth until May 22. Melforth wished to sell Greenacre to
another buyer who is offering $1.2 million for the tract of land. Has a contract resulted between
Melforth and Dallas?
Solution
Yes, a contract has been formed.
Offeror - Melforth Realty Company
Offeree- Dallas
Communication- letter and registered first class mail
For a contract to be formed, Acceptance of an offer and communication to offeror are necessary.
Here the problem is with communication.
• An acceptance is effective when it is sent, i.e. upon dispatch.
• As per the rule -effective moment: acceptance by dispatch, an acceptance is generally
effective upon dispatch, when an authorized means of communication is used.
If an unauthorized means is used, the acceptance occurred only when received by the offeror if it
was received within the time during which the authorized means would have arrived.
Authorized means- historically, it is the one that is used by the offeror or one that is mentioned in
the offer. But due to different modes of communication developed, The Restatement and the
Code now offers a broader definition of authorized means- any reasonable means to
communicate, unless the offer stipulates otherwise
As a General rule – acceptance of offer must be communicated to offeror. Registered mail is an
authorized means of communication.
Here the offeror has not mentioned any specific medium. There are no stipulated provisions in
the offer, such as
Hence the offeree is impliedly authorized to use any reasonable means of communication. Hence
registered mail, a reasonable means of communication, is considered as an authorized medium as
per the restatement by code. By the general rule, the offer becomes accepted by effective
moment: acceptance by dispatch.
Note:
Even though registered mail is not the same as letter, we consider this as reasonable means and

2. hence authorized because it satisfies two criteria
Since it is authorized means, the offer stands accepted at the time of dispatch( even though it
reached late).
But unauthorized means will be acceptred only based on time of receipt (if they reach later than
the time taken for a authorized means , they will not be accpeted).