...the parties. The rules on offer and acceptance are usually used to pinpoint when a series of negotiations has passed that point, in order to decide whether the parties are obliged to fulfil their promises. An offer is intimation, by words or conduct, of a willingness to enter into a legally binding contract. An acceptance of an offer means unconditional agreement to all the terms of that offer. It will often be in oral or in writing, but in some cases an offeree may accept an offer by conduct, as illustrated in Brogden v Metropolitan Railway. An acceptance does not usually take effect until it is communicated to the offeror. In other words, mental assent is not enough. This was decided in Entores v Miles Far East Corporation. Where parties negotiate face-to-face, communication of the acceptance is unlikely to be a problem. However, difficulties tend to arise where the parties are communicating at a distance. The main reason for the postal rule is historical, since it dates from a time when communication through the post was even slower and less reliable than it is today. It was developed before instantaneous methods of communication such as telephone, fax, emails and text messages came about. Therefore, there is an argument that the postal rule of acceptance no longer serves a useful purpose in the world of modern business communications. Nevertheless, the principle stands. Thus, when dealing with letters or telegrams, the rule still applies. The general rule for the acceptance...
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...1 Postal rule is the rule that a contractual offer may be accepted by post and will be deemed accepted at the time the letter is posted. However, some old English cases say that this rule will not apply where one is using almost instantaneous forms of communication. For example, at the time fax and telex were contemplated, but this all was before email. Acceptance by email of a contractual offer will occur when the message is received as that is when it is communicated. However, the competing argument is that email is often delayed between servers, so the argument occur, if email is not almost instantaneous, the rule should apply as long as it was expected that email was a method by which acceptance could be communicated. Acceptance by email of a contractual offer will occur only where and when the message is sent from and when it is communicated. The Singapore High Court in a case of Chwee Kin Keong v Digilandmall.com Pte Ltd gave some thought to this argument in 2004 and concluded that, at least in Singapore, the postal acceptance rule should not apply. Legislation that stated by Australian federal about electronic transactions which sets out some rules about when electronic messages are deemed, have been sent and received, but the better view is, there are no intention to apply or deny the postal rule but would rather simplify and clarify the time and place of recipient for certain communications. However, Federal Court judge on 20 May 2009 in a case of Olivaylle Pty...
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...to write an assignment on the 'Rationale & relevance of the postal rule of acceptance in the 21st century' by analyzing the possibility of acceptance by post according to the current practice. (You can supply your reasoning for the rule, cite the relevant case laws, search for articles written on this & conclude with your opinion as to whether it need to be abolished or not & why?) CONTENT | | Pages | I | Questions | 2 | II | Content | 3 | III | Introduction | 4-5 | IV | Traditional View | 5-6 | V | Modern View | 6-8 | VI | Conclusion | 8-9 | VII | Bibliography | 10 | Introduction of Postal Rule To form a contract, it usually requires offer and acceptance. Acceptance is an expression by words or conduct of assent to the terms of the offer. It shall be clear, unequivocal and unconditional as prescribed by the offeror. It is a moment when contract exist (that there is consensus ad idem). The general rule of acceptance is been stated in the case of Entores Ltd v Miles Far East Corporation, Lord Denning claims that an acceptance does not usually valid until it is reached to the knowledge of the offeror. This principal also applies to others modes of communications which are (a) Instantaneous means of communication, (b) Postal rule and (c) Others mode of communication. However, the postal rule is an exception towards general rule for the acceptance. The traditional postal rule stated that the acceptance is valid once it is posted rather than...
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...The postal rule is a historical ruling, which came about in a time where the main and quickest form of business communication was by post. Through the decades other forms of communication have been invented which are now much speedier – telex, phone , fax and now instant messaging and email. Central requisites to the forming of a contract are those of offer and acceptance. The general rule in law states that acceptance is communicated, and has been received by the offeror . The ruling applies where the means of communication are deemed instantaneous Entores Ltd v Miles Far East Corpn (1955). The exception to this rule is the Postal Rule. Where post is the requested form of communication between parties or where it is an appropriate and accepted means of communication between parties, acceptance is complete as soon as the letter is posted. Even if the letter was mislaid or lost and does not reach the offeror. It is a requirement that the letter of acceptance has been properly posted London and Northern Bank (1900). It is found telegrams also fall under the postal rule. An issue that rises from the Postal rule is that there is a period of time, where person(s) are in the dark as to whether a contract is in existence or not. Courts have decided that the offeror assumes all the risk, as the offer is still open during the time the letter of acceptance is in the post Adams v Lindsell(1818). The decision was based on the fact that an acceptance of an offer could go on ad...
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...Cork Online Law Review 2007 13 O’Brien, Analysis of the Postal Rule ANALYSIS OF THE POSTAL RULE The Postal Rule Revisited Ronan O’Brien In The Law of Contract,1 Treitel refers to the postal rule as being an arbitrary (based on random choice or personal whim)2 rule. As there are differing views on where acceptance by post should be deemed complete, serious problems can arise for the parties to the contract when a breakdown of postal communication occurs. Three possible solutions to this problem exist. The acceptance is complete either when the letter of acceptance is placed in the letterbox; when it is delivered to the offeror’s address; or when the letter of acceptance is brought to the attention of the offeror.3 In Adams v. Lindsell4 a solution was laid down. It was held was that the contract had been accepted when the letter was placed in the letterbox. This is taken to be the understood postal rule. More modern forms of communication such as e–mail, telephones with answering machines and faxes do not follow this rule. The ruling in Adams v. Lindsell is often seen as one of convenience.5 Without a definite ruling on postal agreement, no contract could be completed by post, as “[t]he [offerees] ought not to be bound till after they had received the notification that the [offerors] had received their answer … and so it might go on ad infinitum.”6 Although the two latter possible solutions would seem more representative of the idea that acceptance must be communicated, the...
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...1(2007) The Postal Acceptance Rule in the Digital Age∗ Dr. Marwan Al Ibrahim Asst. Professor in commercial and Company law, Amman Arab University for graduate studies – Jordan Dr.Ala’eldin Ababneh Assistant Professor in Private Law at Amman Arab University for Graduate Studies-Jordan. Mr. Hisham Tahat PHD student, University of Aberdeen Abstract: This article examines the application of the postal acceptance rule to email acceptances. Different views have been argued against the application of traditional rule like the postal acceptance rule, which was established in 1818 as a legal norm in contract formation to modern communications like the email. The paper presents the arguments and rationale behind the application of this rule and contends its applicability to the modern communication via e-mail. The paper posits that email is not an instantaneous method of communication, but can be viewed as a digital version of the normal post and thus the postal acceptance rule should apply to this kind of contracting. Keywords: E-commerce, Email, Contract law, Conclusion of Contract, Postal Acceptance Rule. 1. Introduction The conclusion of distance contracts has been one of the controversial issues in the law of contract formation. It raises some question marks, especially with regard to the type of rules that should govern the timing of contract formation. More specifically, a strong debate has been emerged recently as to whether the postal acceptance rule may apply in...
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...SHOULD THE POSTAL RULE BE DISCARDED? The “Postal Rule”, commonly known as the “Mailbox Rule” is a principle of contract law. This rule is different from the others, though, as it forms an exception to the general principles of the communication of acceptance. It originated in the English case of Adams v. Lindsell, in the year 1818. The postal rule in England states that a contractual offer, when sent by post, is considered accepted when it is sent-as opposed to when it is received by the receiving party. In India, though, the specifications of this rule are different. This rule has recently been at the heart of a lot of controversy, as it is believed that its applicability in today’s scenario is questionable and that the rule is archaic in nature. Writing this paper is of importance is because it is essential to understand whether such an exception is still applicable in a scenario wherein the technological advancements complicate our communication systems much more than the law-makers of those times would have deemed possible. Furthermore, this paper is written in the light of a comparative analysis between the contract laws of England and India. England, like India, is a common law country. Since India borrowed a large part of its systems from Britain, the foundations of legal functions in both the nations are very similar, making it is interesting to analyze how and why certain differences came up. In this essay, we first understand the basics of the rule in England, as...
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...The postal rule (of acceptance) is the fifth and last of the relevant sub-rules affecting communication of acceptance. It can be summarized as, “If, and only if, the postal service is an acceptable method of communication between offeror and offeree, a letter of acceptance takes effect immediately upon posting, rather than upon receipt, and acceptance is therefore taken to have been communicated (to the offeror) at the time of posting the letter.” The rule itself was established in the 19th Century when the only communication between mutable parties was to deal wit each other via mail. There was none of the types of communication that we have today. Thus contracts were created face-to-face or by correspondence. The rationale for the creation of the postal law came form the case Adams v Lindsell which involved the sale of wool between two parties, the defendant wrote to the plaintiff about the selling of some fleeces and required an answer via the post. The response letter was misdirected and not received till three days later and the plaintiff posted there letter on the same day but was not received until four days latter. On the day before it arrived the defendants not having received a reply by the date they expected sold all of the wool. The defendant agued that there could not be a contract until the letter was received. The judgment of this was that if contracts were not created until the acceptance letter was received then...
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...BSAD 341: BUSINESS LAW Semester: Fall 2011 Assignment # 2 - Case Study - Contract Law The Postal rule is an exception to the general rule of contract law in regard to the acceptance, which states that “acceptance in not effective until communicated to and received by the offeror”. The postal rule states that, by contrast, that acceptance takes effect when a letter is posted. The rationale given for the rule is that both parties nominates the post office as implied agent and therefore receipt of the acceptance by the post office is regarded as that of the offeree. The main drawback of the postal rule is that the risk of the acceptance being delivered late or lost in the post is placed upon the offeror. Thus acceptance is effective even when the letter is lost in the post. However, if the letter is lost or delayed in the post because the offeree has addressed it incorrectly the “postal rule” will not apply. To minimize the risk, the offeror can require actual receipt as a condition before being legally bound. The postal rule applies only to acceptance. Revocation is ineffective until communicated to the offeree, hence revocation by post is ineffective until the letter is actually received by the offeree. The implication of this is that it is possible for a letter of acceptance to be posted after a letter of revocation of the offer has been posted but before it is delivered, and acceptance will be complete at the time that the letter of acceptance was posted – which would...
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...QUESTION PRESENTED: Should Postal rule be discarded? In the paper we will discuss the postal rule and simultaneously take up the case laws related to the particular issue. First, we will introduce the postal rule. After that, we will point out the main features. At last we will critically analyse the rule and conclude. The whole paper is based on the English jurisdiction. When the parties are located at a distance from each other and are contracting through postal communication it is difficult to decide when the contract is concluded. There are two possibilities in such a case: 1. The contract is concluded when the acceptance is posted. 2. The contract is concluded when the acceptance is received. A similar situation arose in Adams v. Lindsell. On September 2, 1817, the defendants sent a letter offering to sell wool to the plaintiffs. The letter reached the plaintiffs on 5th of the same month. The plaintiffs posted the acceptance on the same evening but it reached the defendants on September 9. The defendants waited till September 8 and then sold it to some other party. They were sued for the breach of contract. The defendants argued that there should have been no binding contract unless and until the plaintiff’s answer is received by them and, therefore, they were free to sell the wool to some other party on September 8. But the court said: If it were so, no contract could ever be completed by post. For if the defendants were not bound by their offer when...
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...Sun: I hope you've been well. I have done some research after receiving your mail last week regarding some questions of the postal rule of acceptance and the case of Masters v Cameron (1954) 91 CLR 353. After researching those issues, and based on acceptance set out below, I believe that you will obtain some exact concepts of acceptance on the contract. Thus, I will explain the postal acceptance rule and whether it still operates in Australia or not, discuss how businesses generally modify the postal acceptance rule, and conclude the case of Masters v Cameron more fully below as I understand them. * Postal Acceptance Rule The postal acceptance rule or the mailbox rule, created in 1818, is a term of common law contracts and affect communication of acceptance. It is defined as acceptance by post has been requested or use an appropriate and reasonable means of communication between the parties, then acceptance is taken effect immediately upon the letter posted. This rule determines the timing of acceptance of an offer when mail is concerned as the medium of acceptance. The general principle is that a contract is formed when acceptance is actually communicated to the offeror. Thus, an offer made by letter is not effective until or unless received by the offeree. Acceptance is effective as soon as it is posted. The major case in the postal acceptance rule is Adams v Lindsell (1818) B & Ald 681 that a contract was formed when the acceptance letter was posted. As the case described...
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...QUESTION 1 On the 3rd February, Kenanga offered to buy silverware from Hassan. On 6th February, Hassan sent his letter of acceptance to Kenanga by post. Unfortunately, the letter was delayed by Pos Malaysia. The acceptance letter reached Kenanga on the 28th February. However, before that, Kenanga had posted her letter of revocation on the 13th February and it reached Hassan on the 18th February. Advise Kenanga. Issues: The contract between Kenanga and Hassan valid? Relevant provisions: Section 4(2) (a) Act 1950: When it is agreed that the parties will we post as a means of communication the postal rule will apply. The postal rule states that where a letter is properly addressed and stamped the acceptance takes place when the letter is placed is the post box. Support cases: Ignatius v Bell (1913) 2FMSLR115 Facts of cases: P sued for specific performance over his rights to purchase D’s land. The option was to be exercised on or before 20th August 1912. The parties had contemplated the use of post as means of communication. P sent a notice of acceptance by registered post in Klang on 16th August 1912 but was not delivered until 25th August 1912 because P was away. Held: The court applied Section 4(2) (a) Act 1950 and held that the option was duly exercised by the P when the letter was posted on 16th August 1912. Although the defendant don’t know about the offer has been made by the plaintiff but the contract is binding. Support cases: Byrne v Van Tienhoven (1880)...
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...1(2007) The Postal Acceptance Rule in the Digital Age∗ Dr. Marwan Al Ibrahim Asst. Professor in commercial and Company law, Amman Arab University for graduate studies – Jordan Dr.Ala’eldin Ababneh Assistant Professor in Private Law at Amman Arab University for Graduate Studies-Jordan. Mr. Hisham Tahat PHD student, University of Aberdeen Abstract: This article examines the application of the postal acceptance rule to email acceptances. Different views have been argued against the application of traditional rule like the postal acceptance rule, which was established in 1818 as a legal norm in contract formation to modern communications like the email. The paper presents the arguments and rationale behind the application of this rule and contends its applicability to the modern communication via e-mail. The paper posits that email is not an instantaneous method of communication, but can be viewed as a digital version of the normal post and thus the postal acceptance rule should apply to this kind of contracting. Keywords: E-commerce, Email, Contract law, Conclusion of Contract, Postal Acceptance Rule. 1. Introduction The conclusion of distance contracts has been one of the controversial issues in the law of contract formation. It raises some question marks, especially with regard to the type of rules that should govern the timing of contract formation. More specifically, a strong debate has been emerged recently as to whether the postal acceptance rule may apply in...
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...business law is an antitrust law that keeps companies from market sharing, price fixing, and monopolizing an industry. There are many government agencies that control business law. Some examples are the Federal Trade Commission, U.S. Consumer Product Safety Commission, U.S. Patent and Trademark Office and the U.S., and the International Trade Commission. Law in Society Laws touch every aspect of social behavior across all walks of life. It begins at birth to determine a person’s citizenship and ends at death with the distribution of a will. They stretch across one’s entire life including involvement in marriage, divorce and, even pet ownership (Vago, 2009). Laws started as rules that were used to control the conduct of an individual towards another individual or towards all people called society. These rules were geared to...
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...[Introduction] Naiker wants to purchase a second hand piano and Ahmad posted an offer on Monday 2 June by letter to Naiker but his offer was delayed by postal strike. Upon receiving Ahmad’s offer on Thursday 5 June, Naiker wants to seize the opportunity and wrote back an immediate letter of acceptance to Ahmad on Friday 6 June. However, Naiker’s letter of acceptance was delayed again and only reaches Ahmad on Monday 9 June. In the meantime, when Ahmad did not receive any replies from Naiker and believed that he is not interested in purchasing the piano anymore, and hence sold the piano to Janice, the third party in this case. [Issues] The issue is whether there is an enforceable contract even though Ahmad has no control over the postal strike that delayed the arrival of both the letter of offer and acceptance. At the same time, whether Ahmad is responsible for Naiker's loss of piano since he was unaware of the acceptance letter that was posted on Friday 6 June and only till it arrived on Monday 9 June and hence, Ahmad did not post any revocation of offer to Naiker. These can be supported by Agreement, Postal Rule and Revocation of Offer by Offeror. [Relevant Law and Application] Agreement is one of the essentials needed to form a contract. In terms of making an agreement, there must be an offer and an acceptance in return. In this case, it was clear that Ahmad has posted an offer by letter to Naiker and Naiker has also returned an immediate letter of acceptance back to...
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