Discuss Whether the Postal Rule Should Continue to Be Applied, and the Scope of Communications Methods(If Any) That Should Be Covered by the Rule

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|BML1105 – Business Law | |ASSESSMENT : RESEARCH ESSAY | | | |Discuss whether the postal rule should continue to be applied, and the | |scope of communications methods(if any) that should be covered by the rule | | | |Alfred | |22 May, 2012 | | |

Table of content

1. Introduction4

2. History and Background of the Postal Acceptance Rule5

3. Case of the Postal Acceptance Rule6

3.1 Application case of the Postal Acceptance Rule6

3.2 Exclusion case of the Postal Acceptance Rule6

4. Electronic Transactions Act8

5. Conclusion9

5.1 Rationale of the Postal Acceptance Rule9

5.2 Effect of the Postal Acceptance Rule9

5.3 The Postal Acceptance Rule in currently applies circumstances9

5.4 The Postal Acceptance Rule and ETA10

5.5 Rules used for acceptance sent by Fax and Email10

5.6 Keeping Postal Acceptance Rule in part of Australian contract law?11

Words Count12


1. Introduction
Contracts are in anywhere. Contracts = “Intention”, “Agreement” and “Consideration”. The rule of Contracts will establish when offeree is accepted the offeror’s offer. “Agreement” is one important term in Contract. “Agreement” is “Offer” and “Acceptance”. Today our topic is The Postal Acceptance Rule which only applies to “Acceptance”. Hence we focus on “Acceptance” and assume that if “Acceptance” is valid, and the contract will valid too.

The general rule is formed contract acceptance is actually communicated to the offeror. But The Postal Acceptance Rule is an exception of this rule. Today is the electronic world, communication is not only by postal service also use by electronic transaction. Now we will discuss The Postal Acceptance Rule is its rationale, effect, should it continue to be applied and compare to Electronic Transactions Act (ETA) for determining the timing of acceptance sent by fax and email. Also we will talk about expanding or restricting the types of modern communication methods affected by this rule.

2. History and Background of the Postal Acceptance Rule
The Postal Acceptance Rule is the fifth and the last of the relevant sub-rules affecting communication of acceptance. The Rule maybe summarized in this way

In 19th Century England, there only 2 method of communication between offeror and offeree deal in person or by mail. The courts had to decide the moment of contract formation by this 2 method. If the negotiating parties are deal in person, they do not face the problem of delay and failure of information transmission. If offeree accept the offer to offeror by mail, there will be a substantial delay in delivery of the letter or even totally lost in the course of post. Adams v Lindsell[1] is the case of delay acceptance and The Postal Acceptance Rule was established by this case. In Case we saw that negotiating parties were not sure the precise time of acceptance had been communicated. This created timing of the acceptance problem and led to the formation of rule. Hence the court determined the acceptance is valid when the letter of acceptance is posted.

3. Case of the Postal Acceptance Rule
3.1 Application case of the Postal Acceptance Rule
According to Household Fire & Carriage Accident Insurance Co (Ltd) v Grant[2], Grant applied by a letter for shares in the Household Fire and Carriage Accident Insurance Company Ltd. The shares were allotted to him...
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