The postal rule is a legal principle that states that an acceptance of a contract offer is effective as soon as it is mailed, rather than when it is received. This rule is often applied in cases where the offeror and the offeree are not in the same location, and the acceptance must be communicated through the mail or other forms of distance communication.
The postal rule is based on the principle of fairness, as it allows the offeree to accept the offer without fear of the offer being withdrawn before they have a chance to accept it. It also allows for flexibility in contract formation, as it allows parties to enter into a contract even if they are not physically present at the same location.
The postal rule is not universally accepted, and it is not applied in all legal jurisdictions. In some jurisdictions, the acceptance of a contract is not effective until it is received by the offeror. This is known as the "receipt rule."
There are several exceptions to the postal rule. One exception is the "instantaneous communication" exception, which states that the postal rule does not apply if the acceptance is communicated through instantaneous means such as telephone or telegraph. Another exception is the "Revocation before receipt" exception, which states that the postal rule does not apply if the offeror revokes the offer before the acceptance is received.
In summary, the postal rule is a legal principle that states that an acceptance of a contract offer is effective as soon as it is mailed. It is based on the principle of fairness and allows for flexibility in contract formation. However, it is not universally accepted and has several exceptions.
mailbox rule
Even if the letter was mislaid or lost and does not reach the offeror. Bargaining at a distance, typically through the mail, formed a problem, because the parties could not discern at the same time whether they had formed a contract. Website acceptances are clearer that general rules of offer and acceptance could be applied to. The offeror, to have a change in mind or a withdrawal of the offer, or made an offer with someone else is possible but nevertheless, the court looked into the conduct business would be better served by giving the offeree certainty, thus the postal rule was created. The main cause for this is historical, as at the time when postage of a letter is slower and less dependable than it is today, in this modern century.
A contract is an agreement enforceable by law and also legally binding between the parties. As electronic methods have progressed, the dispatch and receipt of a message tends to coincide and any law that dealt with the delay between the two, such as the postal rule, seems to be rendered useless or obsolete. It was held that there was a valid contract, because the rule for the post is that acceptance is effective even if the letter never arrives. Hughes contracted Holwell Securities an opportunity to acquire his house for A£45, 000. In the sensible allegation of the postal rule today, it is much easier to establish that a letter of acceptance has been sent than to verify whether it has been acknowledged or reached the attention of the offeror.
A rule of contract law that makes an exception to the general rule that an acceptance is only created when communicated directly to the offeror. These two Acts give new insights to the application of postal rules. This paper is divided into two parts. The general rule is that advertisements are invitations to treat not offers. This however does not valid to the postal rule. It does though require that methods of communication can be split into immediate and non-immediate, a distinction that may become blurred with future technological advances.
The plaintiff therefore succeeded: the defendant was in breach of contract. Evidence showing that postal rule is still relevant today is the fact that some companies require signed legal documents containing terms and conditions to be made through post. The offerer must have been initiating negotiations from which an agreement may or may not in time result. The option was to be valid 'by notice in writing' within 6 months. When you submit a question or make a comment on our site or in our law forum, you clearly imply that you are interested in receiving answers, opinions and responses from other people.
The third element, consideration, relates to that which is being exchanged. In this current world, communication can take place in many ways. What Is Mail Fraud? A recipient can remove their name from mailing lists by registering for a domestic mail suppression service called DMAchoice. This point is supported by the New Zealand case of Wenckheim v Arndt and the South African case of A to Z Bazaars Pty Ltd v Minister of Agriculture 1974. The rational behind the postal rule is that it encourages contracting by parties at a distance by making the person in the position of giving an acceptance just as secure as if the contract was being made face to face. The contracting officer must submit a justification for any waiver request to the VP, SM.
Law of contract is based on the intention of both the parties to create legal relations between themselves. It does not apply to instantaneous methods of communication such as telex or probably, fax or email. This is another weakness of instantaneous communication as this favour is not applicable for contracts made electronically through instantaneous communication. The mode of forming a contract, say, for example, an offer, acceptance and the invitation to treat are technically relying on the electronic communication. Lastly, the rule is easily displaced, for example, it may be excluded by the offeror either expressly or impliedly. Depending upon the e-mail system involved, the sender may be advised of the time when the e-mail is received by the recipient's ISP, downloaded to the recipient's computer system or actually opened by the recipient.
A letter is considered to be posted when it is inserted in an oicial letter box or given directly to an authorised employee in the post oice. The general principle that acceptance takes place when communicated applies to instantaneous forms of communication. Holwell posted a letter exercising the option, five days before the expiry. Unless the offeror has clearly stated in the terms of the offer that acceptance must be communicated by other means the offer must be accepted through the terms of the postal rule. Advertisements have no sufficient offer to contract. What does the mailbox rule mean quizlet? On the other hand, the argument for in this question is because there is some support for allowing recall in the Scottish case of Dunmore v Alexander 1830.
The individual who sends the correspondence takes the risk of its not arriving. Related Articles Prime Objective of Registering a Company A prime objective of registering a company is to execute a business with the third party or with the contractor. The method of forming a contract, say, for instance, an offer, acceptance and the invitation to treat are theoretically depending on the electronic communication. A rule of contract law that makes an exception to the general rule that an acceptance is only created when communicated directly to the offeror. In Adams v Lindsell 1818 the defendant wrote to the plaintiff offering to sell them some wool and asking for a reply 'in the course of post'. Section 6 of the Protection of Birds Act 1954 made it an offence to offer such birds for sale.
The case is cited to hold up the vision that retraction may be possible. An acceptance can be made or communicated through conduct, silence, private courier, internet transaction, electronic communication and last but not least, by post. Jones delivered a letter to the bank revoking his offer. This is important in many cases, for instance in meeting due dates, in choosing among contending acceptances, in choosing whether an old or another expense rate ought to apply to a deal, etc. Before considering on an analysis of the legal principles relating to the formation of contracts and their applicability to contracts supposedly formed by e-mail, it is essential to examine the process involved in sending an e-mail.
