What is the test for establishing mutuality of obligations in a contract made by correspondence?
British Columbia, Canada
The following excerpt is from Trans-Pacific Trading v. Rayonier Canada Ltd., 1998 CanLII 6110 (BC CA):
The difficulty alluded to in the first part of this passage is echoed in the judgment of Taschereau J. in Magann v. Auger (1900), 1901 CanLII 44 (SCC), 31 S.C.R. 186 at 193: If it were required for the aggregatio mentium necessary to create mutuality of obligations in a contract made by correspondence that the party who has made the offer has received the acceptance of his offer, it would follow that the party accepting should himself not be bound till he is informed that his acceptance has reached the party offering. It is obviously of the greatest importance to the commercial community that such a doctrine should not prevail.
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