...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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...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, Adams posted a letter...
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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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...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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...Journal of International Commercial Law and Technology Vol.2,Issue 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...
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...U.K DEGREE TRANSFER PROGRAMME (LAW) JULY’10 Name | Alexander Richmond Bin MindiongDouglas Lim Teng YangYang Xi | Student I.D | | Submission Date | 20th Sept 2010 | Words Count | 1732 Words | Subject Code | DL2(Law of Contract) | Assignment Question: You are requested 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...
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...Journal of International Commercial Law and Technology Vol.2,Issue 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...
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...Postal Rule Definition: 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. The postal rule is a concept of contract law that is commonly referred to as the mailbox rule. It was formed at a time when contracting parties did much of their bargaining from a distance. Bargaining at a distance, typically through the mail, created a problem, because the parties could not know at the same time whether they had formed a contract. As a result, a general rule dictating the time of an effective acceptance was necessary. Thus, the postal rule was created and stands for the proposition that acceptance is effective on dispatch. The postal rule is an exception to the general rule, which dictates that acceptance is effective on receipt. The rationale 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. From a policy standpoint, it also fosters the creation of contracts at the earliest possible moment. The postal rule is easily understood by describing how it operates. For example, a person — known as an offeror — sends an offer to a second person — known as an offeree — via mail. According to the rules of contract formation, the offeror can revoke the offer at any time before acceptance; this makes the offeror the "master of the bargain." At a time...
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... Formation of the contract Offer and Acceptance * “The law’s treatment of advertisements and the displays of goods in shops reflect ideas of freedom of contract as well as common sense in commerce.” Discuss. Postal Rule * “The postal rule may have been justified by the forms of communication at the time the rule was articulated but its continued use is akin to ‘flogging a dead horse.'’’ Discuss. * “The postal rule may seem anachronistic, yet although it does reflect the age in which it came into being, it remains applicable in the age of electronic communications.” Discuss. * “The postal rule may have been the correct rule to apply to the acceptance of an offer at the time it was created, but in an age of electronic communications it should be abolished.” Discuss. * With reference to the postal rule, critically assess the way in which literature and history can shed light on a principle of law. * The postal rule may have made a lot of sense at the time it was first articulated but it is not suited to modern forms of communication. Discuss. Intention to create legal relations * “The requirement that parties ‘intend to create legal relations’ is an outdated, unjust and unnecessary element of the law of contract formation.” Discuss. * Explain the test or tests that have been used to distinguish between: (1) an invitation to treat and an offer and (2) a counter offer and a request for further information. * “The law on the requirement...
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...Journal of Politics and Law Vol. 4, No. 1; March 2011 Clarification of Rules of Acceptance in Making Business Contracts Dr. Md. Abdul Jalil Associate Professor of Law Department of Business Administration, Faculty of Economics and Management International Islamic University Malaysia (IIUM) E-mail: abduljalil@iiu.edu.my, abd_jalil2@yahoo.com Abstract Business firms and Business corporations enter into thousands of contracts everyday. Making a formal and written contract is very important for business corporations and firms although oral contracts are accepted and recognized by law. There are certain rules on making a valid formal contract. If the business firms do not have knowledge of those contract formation rules and they make contracts in ignorance of those rules, their contracts would be liable to be declared as null and void by the court of law if it is referred to it to determine its validity or to get a remedy for breach of contracts by one of the parties in the contract. In this paper I have not discussed all the elements of a valid contract. I have discussed only one of the fundamental elements of a valid contract that is ‘acceptance’. In a business contract, there must have be an ‘offer’ and an ‘acceptance’, to make a valid contract, if not the contract will not be valid, recognized and enforceable in the court of law. The objective of this paper is to clarify the rules of making a valid ‘acceptance’ which may lead to making a binding contract between the parties...
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...Introduction The purpose of this assignment is to present our knowledge of the laws of contract and the various legal principals arising in each case. Explaining and applying the 4 basic elements of a valid contract as well as other aspects of contract including capacity to enter a contract, the postal rules, contractual terms implied and express, relevant law relating to discharge of contract, remedies for breach of contract, types of damages recoverable and remoteness of damage. There are 3 different cases interrelated but completely different from each other, Alex & Malcom Malcolm & Alex, Malcom & Cathy and Cathy & Malcom. We identified and discussed the relevant aspects of contract law. A contract is a legally enforceable agreement between persons to do different things” (2007) A contract can be very simple as in the above examples or they can be very complex. The same rules apply for every contract whether it is for €100 or €1 million. A contract can be: • In Writing • Orally • By inference (implied between the parties) In order to get a valid contract we need to know some crucial elements. • Offer – An offer is an expression of willingness to contract on certain terms. It must be made with the intention that it will become binding upon acceptance. There must be no further negotiations or discussions required. • Acceptance – The general rule is that acceptance is not effective until it is communicated to the offeror....
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...exists, which the plaintiff accepted? Rule of Law- Invitation to treat. An invitation to treat is not an offer in itself but is an invitation to others to make an offer. Discussion- according to the case, Tom placed an advertisement in the Motor Sports Magazine. Advertising to the public at large. The advertisement stated that the car was for sale, not that the seller would sell to all comers. Chris however saw the offer and was interested in taking the offer stated. However, in an invitation to treat it is also starting point of any negotiations. Chris was aware of the invitation and tried negotiating. In other cases such as “Partridge vs. Crittenden (1968)”, where the appellant inserted and advertisement in a periodical “Bramble finch cocks and hens, 25s each”. Also “Gibson vs. Manchester City Council (1979)”. Issue- If “A” makes an offer and “B” makes a counteroffer, does the original offer remains open? Rule of Law- When studied more indepth; a counter offer was also present. A counter offer is said to be an offer made in response to a previous offer by the other party during negotiations for the final contract. Discussion- The case clearly shows that Tom was offering to sell a Triumph TR6 for $10,000. Chris in reply offered $8000 which the defendant refused and stated that cheque was preferred for advertised amount. The plaintiff then sought to accept the original offer of $10,000. However there was no contract. Where there is a counter offer, this...
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...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...
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...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 Ahmad. Despite having delays for the letter of acceptance to reach Ahmad, it was still within a reasonable period of time frame and the contract was...
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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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