This section is from the book "The Law Of Contracts", by William Herbert Page. Also available from Amazon: Commercial Contracts: A Practical Guide to Deals, Contracts, Agreements and Promises.
If the party making the offer dies before the letter of acceptance is received, but after it is mailed, the offer does not lapse, since it has already been turned into an agreement by acceptance.1 The rule is the. same where the party accepting the offer dies after his letter of acceptance is mailed.2
Sec. 205. Breach, etc., after mailing acceptance. If facts occur while the letter is in the mail, which would amount to performance, breach, and the like, if a contract had been made, such facts give a right of action if mailing the acceptance was a proper method of communication within the contemplation of the offeror.1 So an insurance policy which is not to be in effect until "delivery" takes effect when it is mailed to the insured, properly addressed, postage prepaid.2