...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...
Words: 1793 - Pages: 8
...According to law for a contract to be sufficient but need not be adequate. There are four major elements which is very important in contract laws. First element is offer, whereby there must be an offer offered by the offeror or by offeree to each other which is accepted by the parties and which consequently creates a binding contract; offer is also an expression of willingness to contract done with an intention of creating a binding contract in as soon as the offer is accepted. The nature of offer differs if it’s an invitation for treat or a unilateral contract. However, in Rahman’s case it is an invitation to treat rather than normal offer and acceptance. The chair was exhibited in antique exhibition and it is very much expected to get many offers for that chair as it’s an invitation for offers. The second principal acceptance, whereby acceptance occurs when an offeree agrees to be mutually bound to the contracts conditions by giving considerations or something in value to close the deal. When a valid acceptance takes place a binding contract is created. Referring to this case, Rahman did offer a deposit of Rm500.00 to Kenny Yu but the offer was refused by Kenny, whereby at this point of time there was no binding contract between Rahman and Kenny Yu. The third principle is consideration and it is one of the most important principles among the four major elements. Consideration must be sufficient but no adequate; consideration must involve some kind of value in order to meet...
Words: 800 - Pages: 4
...3-9-2012 LECTURER: MR. IBRAHIM CONTEH CARLOS JULIO BELLO ORDUZ STUDENT ID: 21200686 ST-PATRICKS COLLEGE ASPECTS OF CONTRACT AND NEGLIGENCE FOR BUSINESS TABLE OF CONTENT EXECUTIVE SUMMARY…………………………………………………………………..3 INTRODUCTION……………………………………………………………………………4 CASE STUDY 1: OFFER AND ACCEPTANCE…………………………………………5 CASE STUDY 2: CONSIDERATION……………………………………………………..6 CASE STUDY 3: INTENTION TO CREATE LEGAL RELATION……………………..7 CASE STUDY 4: contractual terms……………………………………………...……7-8 CASE STUDY 5: exclusion clause……………………………………………………8-9 CASE STUDY 6: Tort of negligence …...……………………………………………9-11 CASE STUDY 7: vicarious liability……………………………………………………12. REFERENCE LIST………………………………………………………………………..13 EXECUTIVE SUMMARY CASE STUDY 1: OFFER AND ACCEPTANCE This case involves term such as: offer, acceptance offer, difference between offer and treat, invitation of treat and acceptance of an offer by post. CASE STUDY 2: CONSIDERATION This case of study involves terms such as: part payment, principle of promissory estoppel Pinnels case (1602) and foakes beer (1884). CASE STUDY 3: INTENTION TO CREATE LEGAL RELATION This case of study involves terms such as: intention to create legal relation, domestic contract, social contract and commercial contracts. CASE STUDY 4: contractual terms This case of study involves terms such as: meaning of contractual terms, representation, types of contractual terms. CASE STUDY 5: exclusion clause This case of study involves...
Words: 3270 - Pages: 14
...Rules of offer and acceptance in a contract Offer and acceptance are elements required for the formation of a legally binding contract: the expression of an offer to contract on certain terms by one person (the "offeror") to another person (the "offeree"), and an indication by the offeree of its acceptance of those terms. The other elements traditionally required for a legally binding contract are (i) consideration and (ii) an intention to create legal relations. Offer and acceptance analysis is a traditional approach in contract law. The offer and acceptance formula, developed in the 19th century, identifies a moment of formation when the parties are of one mind. ------------------------------------------------- Offer[edit] Treitel defines an offer as "an expression of willingness to contract on certain terms, made with the intention that it shall become binding as soon as it is accepted by the person to whom it is addressed", the "offeree".[1] An offer is a statement of the terms on which the offeror is willing to be bound. It is the present contractual intent to be bound by a contract with definite and certain terms communicated to the offeree. The expression of an offer may take different forms, such as a letter, newspaper advertisement, fax, email and even conduct, as long as it communicates the basis on which the offeror is prepared to contract. Whether the two parties have reached agreement on the terms or whether a valid offer has been made is an issue which...
Words: 2902 - Pages: 12
...thank my mom, whose support was very important in achieving the glory and success of this assignment. Executive Summary In this report it states that all aspect of contract and negligence of for business. Some of main aspects of contracts where further elaborated and discussed for the convenient of the viewer, some of those questions are definition of a contract, what a valid offer is, what postal rule is and so on. On the other hand this report it discuss the parameters of contract and all relevant topics underneath are covered by proposing solid analysis and evaluation have been made. Furthermore it discussed about the different scenarios and all those scenarios were discussed and evaluated according to law concept. Followings are some of the important solving’s in this report and all are solved according to the law of contract and had been used all the concepts which is appropriated for each case. After the brief answering to theoretical questions about contract law, the author had to short out a case about a lost dog, the scenario was Paul offered Rs 50000 for anyone who finds out his dog and hand over to him personally, dog was found by Brian his gardener but he fail to hand over dog to Paul personally so Brian has fail to get Rs 50000 from Paul. So offer has been considered to be a breach of contract as it is legally enforced. On the other hand, a case between a husband and wife, where the husband agrees to give Rs.4, 000 monthly to the wife for shoes and after he...
Words: 5143 - Pages: 21
...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, Adams posted a letter to Lindsell, offering...
Words: 2457 - Pages: 10
...of repair of the firm Issue: 1. Is there any breach of partnership agreement between Steve & Garry? 2. Is Garry liable for action of Steve in this case? 3. Is the firm or individual liable for the third party claim? 4. What is liability of Steve to Garry? Sub issue: 1. Is there any agency relationship exist between Steve and Garry? Rules relevant to the issues: 1. Section 18(1) of partnership act 1895 (WA) – Misappropriation of money or property 13 – partners bound by the 14, 16, 17, 29 Slide 29 case Application of the Rule/Analysis Partnerships are a particular form of business association or collective business ownership whose foundation lies in mutual confidence and duty of utmost faith in each other which is also referred as fiduciary relationship. Section 29 of partnership act states that the terms of the partnership may be varied by consent which also displaces the common law rule that a written contract cannot be varied except in writing. In this case, there is no evidence that suggests that Garry had any consent of the actions taken by Steve either written or verbal. Garry has taken several actions such as … wihich is not the normal course of the business. Some are apparently within course of business but going against the basic principal of a partnership .i.e making profit … and hence the breach of the partnership agreement between them. Steve Section 13 states that Slide 13 13 PART B – DAVID Issue: 1. Is David personally liable...
Words: 646 - Pages: 3
...to Treat v. Offer to the World at Large A contract may be defined as ‘a promise or set of promises which the law will enforce’ or as ‘an agreement giving rise to obligations which are enforced or recognized by law’ . An ‘offer’ is an expression of willingness to contract made with the intention (actual or apparent) that it shall become binding on the person making it as soon as it is accepted by the person to whom it is addressed . An offer may be addressed either to an individual or to a specified group of persons or to the world at large; and it may be made expressly (by words) or by conduct. A communication by which a party is invited to make an offer is commonly called an ‘invitation to treat’. It is distinguishable from an offer primarily on the ground that it is not made with the intention that it shall become binding as soon as the person to whom it is addressed simply communicates his assent to its terms. A statement is clearly not an offer if it expressly provides that the person who makes it is not to be bound merely by the other party’s notification of assent but only when he himself has signed the document in which the statement is contained . Apart from this type of case, the wording of the statement is not conclusive: it may be an invitation to treat although it contains the word “offer” ; while a statement may be an offer although it is expressed as an “acceptance” , or although it requests the person to whom it is addressed to make an “offer” . In certain...
Words: 1484 - Pages: 6
...Scenario Daniel Ilario LAW/421 February 24, 2014 G. Alan Williams Is Armstrong’s addition of the delivery term binding on GCI? Explain the UCC analysis governing the additional terms added by Armstrong: Yes it is likely that Armstong’s modification of terms would be binding upon Graphic Communications, Inc. (GCI). UCC articles 7-2 through 7-4 speak to contract modifications. Article 7-2 stipulates that modifications are acceptable and normal in the course of business. Article 7-3 establishes the definition of acceptable modifications where offer, acceptance and consideration are met, indicating mutual assent between the parties. Article 7-4 provides that mutual assent need not be proven solely by verbal or written means but also by the conduct of the parties, if that conduct indicates a meeting of the minds. In this scenario, GCI tendered an offer to Armstrong by sending a purchase order that specified payment of a specific amount of money GCI in return for the delivery and assembly of specific equipment by a specified date. Armstrong’s added an addendum to the offer and sent it back to the offeror. However, the addendum did not constitute a counter-offer, because it did not change any of the terms of the original offer, but rather provided additional specificity to the terms implied by the offeror. GCI’s wording implied Armstrong to be responsible for delivery and responsible for assembly of the equipment. Armstrong’s addendum of a destination contract is consistent with...
Words: 1634 - Pages: 7
...Department of Accounting & Finance LAW 1091 Business and Company Law / LAW 1092 Business Law Coursework For many years Cheryl operated a school minibus service in Peckham. In September 2009 Cheryl decided to retire. Accordingly, she placed the following advertisement in the local newspaper: ‘FOR SALE: 2 BLACK FORD TRANSIT MINIBUSES £15,000’ Britney saw the advertisement and decided to visit Cheryl. During Britney’s visit, Cheryl stated that the minibuses were manufactured in 2005’. After their meeting, Britney told Cheryl she would let her know during the following week whether or not she would purchase the minibuses. The next day Cheryl offered to sell the minibuses to Amy, a friend of hers, via an e-mail for a reduced price of £12,000. Amy agrees to purchase the minibuses but in her reply (via e-mail) ‘only if they are re-sprayed white’. The following week Britney accepted the purchase price of the black minibuses for £15,000 by speaking to Cheryl directly. In the meantime, Mohammed has seen the advert for the minibuses and posted his acceptance to buy them for £15,000 to Cheryl. All three parties believe that they have a contract with Cheryl for the sale of the minibuses. Advise Cheryl whether or not she has a contract with any of those three parties. [Overall: an excellent piece of work. You provide an excellent legal analysis in terms of identifying the relevant legal rules, supporting those rules with cases and applying the rules in an accurate manner to the...
Words: 2025 - Pages: 9
...hypothetical case in contract law, more specifically an offer and its acceptance. Its main purpose is to discuss and apply the principles in law, relevant to the topic, as well as advice the parties on their position and legal obligations. In the following case, the offer is being made by an advertisement in a local newspaper. The law states that advertisements in general are merely an invitation to treat and not an offer, the precedent being the Partridge v Crittenden case. An invitation to treat is an action, inviting the other parties to make an offer in order for a contract to be made. It treat cannot be accepted and therefore cannot directly be converted into a contract. The reasons for the decision advertisements to be considered to be invitations to treat are various – from allowing sellers to refuse to sell a wrongly labeled item, to protecting them from legal obligation resulting from a breach of contract when they fail to accommodate all needs due to a shortage in stock or failure in the supply chain. In certain situations, though, an advert can be elevated into an offer. In order for that to happen, the wording must be unambiguous and explicit, leaving no room for negotiation. This concept was first illustrated in the Lefkowitz v Great Minneapolis Surplus Store case. Even though it wasn’t an English case, it can still serve as an example in cases with similar circumstances due to the similarities in the legal systems of the UK and the USA. Furthermore, the offers themselves...
Words: 1167 - Pages: 5
...Table of contents Abstract 3 Introduction 4 ESSENTIAL ELEMENTS OF A VALID CONTRACT 5 Explain different types of business agreements and the importance of key elements require for the formation of a valid contract. 5 Apply the rules of offer and acceptance in the given scenario, also considering any impact of new technology. 5 Assess the importance of the rules of intention and consideration of parties to the agreement by applying. 7 Explain the importance of the contracting parties having the appropriate legal capacity to enter into a binding agreement 7 SPECIFIC TERMS IN A BUSINESS CONTRACT. 8 Analyze specific contract terms with reference to there importance and impact if these terms are broken using Mr. John’s contract for purchase of computers. 8 Justify the selection of methods/ techniques that Mr. John should use for the termination of contract with Mr. Bobs Company. 8 Apply and analyze the law on standard form contracts in the given scenario 9 Discuss the effect of exemption clauses in attempting to exclude contractual liability in the given scenario 11 LAW OF TORT IN BUSINESS ACTIVITIES AND PARTICULAR FORMS OF TORTIUOS LIABILITY. 12 Describe the nature of general tortuous liability comparing and contrasting to contractual liability 12 Explain the liability applicable to an occupier of premises in the given scenario 13 Discuss the nature of employer’s liability with reference to vicarious liability and health and safety implications taking Mr. Bobs Company...
Words: 3228 - Pages: 13
...final destination. The seller does not load the goods on collecting vehicles and does not clear them for export. If the seller does load the goods, he does so at buyer's risk and cost. If parties wish seller to be responsible for the loading of the goods on departure and to bear the risk and all costs of such loading, this must be made clear by adding explicit wording to this effect in the contract of sale. The buyer arranges the pickup of the freight from the supplier's designated ship site, owns the in-transit freight, and is responsible for clearing the goods through Customs. The buyer is responsible for completing all the export documentation. Cost of goods sold transfers from the seller to the buyer. FCA - Free Carrier (named place of delivery)[edit] The seller to deliver goods to a named airport, terminal, or other place where the carrier operates. Costs for transportation and risk of loss transfer to the buyer after delivery to the carrier. When used in trade terms, the word "free" means the seller has an obligation to deliver goods to a named place for transfer to a carrier. Contracts involving international transportation often contain abbreviated trade terms that describe matters such as the time and place of delivery and payment, when the risk of loss shifts from the seller to the buyer, and who pays the costs of freight and...
Words: 2038 - Pages: 9
...importance of key elements required for the formation of a valid contract. Business Agreement Business Agreement is the mutual understanding or assent of two or more than two legally competent parties. It is done or agreed upon on the relative duties and rights regarding current or future performance. An agreement typicallydocumentsthe give-and-take of anegotiated settlementand a contract specifies the minimum acceptablestandardofperformance. Types of Business Agreement There are various types of business agreements depending upon the nature, type and operations / activities of the business. These types can be categorized into following categories based on the above stated criteria. * General Business Agreements * Business Employment Agreements * Leases * Sales Agreements The General Business agreements contain Franchise Agreement, agreement with different agencies for advertising, insurance agreements, agreement on not taking legal actions, Settlement Agreement, Stock Purchase Agreement, business partnership agreement, privatization agreement etc. The different types of Business Employment Agreement are Employment Agreement, Consultancy agreement, Sales Representative Agreement, Employment Separation Agreement, Reciprocal Nondisclosure Agreement etc. Leases are of different kinds like Real Property Lease, Equipment Lease etc, and same is the case with Sales agreements, it also have different types of contracts and agreements like Bill of Sale, Agreement for the Sale of...
Words: 2787 - Pages: 12
...1. Promise is not a contract 2. If it’s not a promise it is not enforceable 3. Go through the analysis 4. Void contract is one that is nullified because it no longer exist 5. Voidable contract can be done by one or both parties 6. Unilateral contract – one party makes a promise but the other party cannot promise they can only finish the act 7. Bilateral contract is a promise for a promise – enforceable promise 8. Option contract – can close offer at anytime unless contration adds consideration 9. Executory contract is one that hasn’t been performed yet 10. Treatment of rewards and auctions- what type of contract and what offer , 11. Promisor v promise’e 12. UCC purpose is uniform commercial code make sure we have a uniform code that the laws will be the same with the sales of goods 13. When does hhe ucc apply – 14. Make sure you know when the od=ffer has to be accepted 15. Understand what a consideration is. 16. Understand=d the difference between legal value and monetary value.pg 151 17. Contrct modification- does there have to be new consideration 18. Liquidated debts and un liquidated debts 19. Due and certain and reasonable explanation why the payment is due 20. Article 2 the sale of goods UCC Definition of a Contract - A Contract is A Legally Enforceable Promise Void/Voidable Contract- one or both may cancel / or is nullified Unilateral Contract-one party makes promise the other...
Words: 423 - Pages: 2
