The Postal Rule

In: Other Topics

Submitted By AniqueMyaz
Words 411
Pages 2
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 when bargaining through the mail was becoming commonplace, the offeree was at a tremendous disadvantage because, once the offeree received the offer, he would not know if the offer still stood or if the offeror had already rescinded it. Additionally, he would not know when he was contractually bound, because he could not determine the exact time of the receipt of his acceptance.

Similar Documents

Postal Rule

...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,......

Words: 1793 - Pages: 8

Postal Rule 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......

Words: 1745 - Pages: 7

Postal Rule

...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...

Words: 497 - Pages: 2

Postal Rule

...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...

Words: 449 - Pages: 2

Postal Service

...The U.S. Postal Service has one of the nation’s popular conflict resolution (ADR) programs in the workplace totaling at 81% of successful mediated cases that were later closed without formal complaints filed. Every organization has a strategy to manage workplace and employee disputes. In October 1994, the U.S. Postal Service introduced the ADR mediation program to assist them in addressing employment disputes (U.S. Postal Service, 2010). The implemented mediation program was called REDRESS (Resolve Employment Disputes, Reach Equitable Solutions Swiftly) with an intention to offer employees another option to the EEO (Equal Employment Opportunity) grievance process. With more than 12,000 EEO complaints under the REDERESS program averaging four hours of mediation, participants in the process are content with the amount of fairness and control compared to the traditional method. The REDRESS mediation program has two objectives; first goal is to settle individual disputes swiftly and effectively by enabling parties to find their own solutions; second objective is for the company to address significant issues to improve the workplace environment. According to the Unite States Office of Personnel (n.d.), an evaluation was conducted with support from Indiana University found that most of complaints mediated under REDRESS program settled reducing complaints proceeding to formal process. In addition to the findings, supervisors who have been through the mediation process managed......

Words: 452 - Pages: 2

Postal Rule

...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......

Words: 564 - Pages: 3

The Postal Rule

...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......

Words: 2068 - Pages: 9


...POSTAL OPERATIONS CONTINGENCY PLAN POST OFFICE KMC APOs 24 Aug 2014 Table of Contents 1.0 INTRODUCTION 3 2.0 PURPOSE 3 3.0 PERSONAL MAIL 3 3.0.1 Finance/R&D 3 3.0.2 PSC 3 3.0.3 Supply 3 3.0.4 Customer Service 3 3.0.5 COPE 3 4.0 OFFICIAL MAIL (OM) 4 5.0 SHARED FUNCTIONS 4 5.0.1 R&D 4 5.0.2 Registered Mail 4 5.0.3 MCA/AMT 4 5.0.4 Directory 4 6.0 RECOVERY PLAN 4 1.0 INTRODUCTION This contingency plan is designed to document functions performed and limitations to personal and official mail postal services in the event the main facility is no longer usable. This plan will provide general guidelines on postal responsibilities during contingency as well as outlining local restoral procedures. 2.0 PURPOSE This contingency plan is designed to identify limitations on available postal services. The purpose of this plan is to provide guidance to EOC, CAT, and UCC personnel in preparation for disasters. It serves as a recovery plan to provide limited mail services until full capabilities are restored. A closure or interruption in service may be caused by damage to facilities, equipment, or personnel at Bldg 426, 2110 or 2763. Damage can be caused by intentional (combat damage, terrorist attacks or acts of sabotage) and unintentional (natural disasters, hardware/software failures, operator error) means. 3.0 PERSONAL MAIL Personal mail processing consists of five functions:......

Words: 1226 - Pages: 5


...Lab Rules & Regulations 1. The computer lab provided by the University is solely for educational and research activities. Students are prohibited from using the lab for any other reasons. 2. Students must have a valid student ID card to use the computer labs. 3. Students must abide by all rules and regulations, such as those shown on booking sheets, computer screens, and notices near the computers or on the wall. 4. Two-hour Usage Rule: When the lab is full and students are waiting for a vacant computer, the two-hour rule will apply. Students will be limited to 2 hours on the computer per session. 5. All users must abide by the license requirements of any software or resources being used on the computer. 6. The downloading of non-coursework related materials is strictly prohibited on the campus network as it uses much of the network bandwidth, thus slowing down all internet access. 7. All personal data must be saved on a floppy disk, handy drive or on your Home drive. Do not save personal data on the computer hard drive. 8. Please be reminded to scan your handy drive before use to reduce the risk of any virus outbreak. 9. The Management is not responsible for any loss of data or personal belongings regardless of the cause. 10. No moving or unplugging of any equipment in the labs. 11. No pornographic and offensive images & videos. 12. No games (both computer and physical). 13.......

Words: 413 - Pages: 2


...Rules and Regulations Article 1 – Rules 1.1 Referee money - There will be a fee of ten dollars ($10) for whoever plays both halves and six dollars ($6) for those who only play one (1) half. 1.2 Full referee money will be collected at the beginning of each game. You will be required to pay ten dollars ($10) but if you only get to play 1 half, you will be refunded in half time. 1.3 In the event that you DO NOT have money to pay for referee, unfortunately, this means you WILL NOT be able to play. 1.4 Attendance is very important so for 2 games that you miss without a valid excuse, you will be benched. In the event that you miss more than 3 games, this will result in termination of your contract, in other words, you will be kicked out! 1.5 Be on Time 1.6 If you for any reason cannot make it to the game for any planned event that you may have, let us know in advance as we will let you know in advance of the game schedule. 1.7 Owner & Captain – Owner & Captain will make changes as needed for the well being of the team. You (player) at no time and under no circumstance shall yell, scream or get mad at the Owner or Captain and will respect them at all times as you’d like everyone to respect you. 1.8 Respect each other on the field. This is to have fun, not to make your team mates enemies. We all make mistakes but that should be no reason to get mad, yell or scream at your teammates. 1.9 Red and/or Yellow cards - Red and yellow cards have a cost stablished by the......

Words: 441 - Pages: 2

Postal Rule

...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 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......

Words: 410 - Pages: 2

Postal Age

...Book Review: The Postal Age Henkin, David M., The Postal Age. Chicago: Chicago Press, 2006. “Many of us may not realize that what we now call snail mail was once just as revolutionary as e-mail and text messages are today.” Today’s generation may not be quite aware of the long journey Americans have traveled from the Postal Age up to what we now call the Information Age. As an examination of the rise of the American postal system in the middle decades of the 19th century, David M Henkin’s, The Postal Age offers up a fascinating blend of intellectual and thematic history. In his book, Henkin highlights new practices and new expectations as ordinary Americans swiftly turned something novel into something normal-into habit, into culture. The physical layout of the book certainly prepares the reader for it contents. The cover shows what appears a very busy Post Office in which people are climbing atop one another to receive their mail. Henkin lays out his book in two sections. “Joining a Network,” points the basic practical details of the spread of the postal system, how and what people mailed. The second section, “Postal Intimacy,” takes a more cultural approach towards common letter-writing styles and clichés, the post as a lens for growing geographic mobility, and the rise of mass mailings. My initial response was admiration. I was genuinely impressed at the flow of Henkin’s book and his ability to create flux not only in every introduction but also throughout the book......

Words: 1075 - Pages: 5


...Scoring Criteria # Element Weight age 15% 25% 15% 15% 20% 1 Grammar & Spellings 2 Technical Knowledge 3 Referencing (In text Citation) 4 Referencing (Bibliography) 5 Writing Structure and Style 6 Formatting (title Page, Content, Others) 10% Total 100% Note: Your work will be checked through plagiarism software. If it’s a copy/paste material from anywhere, you will be disqualified from the test. Next Page for test rules E: Skype: connect.grbsol W: GRBSOL Ltd. Test Rules The following rules of the test will be applied 1. Total words to write are 1000 to 1200 2. Countable words do not include the Title Page, Table of Content, References and Appendix. 3. Your deadline to submit the work is 24 hours. Your time starts from the moment you receive this email. 4. This work can be done in 3- 4 working hours. It should not take more than that. 5. Work should be plagiarism free. You will be disqualified if your work found to be plagiarized.(see Referencing Guidelines) 6. You need to submit the work through email. Late work will not be accepted and you will be disqualified. 7. Your work should be in the MS Word file. 8. Formatting a. Font Style = Times New Roman b. Font Size = Heading 1: 16” Bold, Heading 2: 14” Bold, Normal Text = 12” c. Line Spacing = 1.5 Times d. Page Margin = 1” on all sides e. Footer = Page # on right bottom f. Header = Topic Name 9. You are required to cite 8 - 10 references at least (journals, articles,......

Words: 322 - Pages: 2

Postal Rule-Contract Law

...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......

Words: 763 - Pages: 4

Postal Rule

...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......

Words: 5565 - Pages: 23

Terms Of Service | Winspector | Je browsegeschiedenis bekijken of bewerken