Postal Rule
THE POSTAL ACCEPTANCE RULE
DANE GARBETT*
CONTENTS
I | Introduction | 1 | II | What Is The Postal Rule | 2 | III | Justification of the Postal Rule | 2 | IV | Application of the Postal Rule | 4 | V | Conclusion | 6 | VI | Bibliography | 7 |
I Introduction
The decision of distance contracts has been one of the major issues that arise within contract law. In which questions had risen in regards to the application of the postal rule and whether it should continue. A strong debate has been frequent lately in regards to its relevance, especially in a time where postal systems aren’t as reliable as the once were, in which agreements are more likely to be discussed throughout electronic means. This paper will discuss two main arguments. The first one conversing justification of the postal acceptance rule, whilst the other analyses the application of the postal acceptance rule throughout electronic communications such as email or fax.
II What is the postal acceptance rule?
It is the rule (stated by the High Court in a case in 1957 which is still good law) that a contractual offer may be accepted by post and will be deemed accepted at the time the letter is sent – not when it is proven received – if it was contemplated that post was a means by which the offer might be accepted. In which a contractual offer is an agreement that contains promises between two or more parties with intentions of constructing certain legal rights and obligations, which is enforceable within a court of law. This can be a written or orally offered. The Postal Acceptance rule is a rule that has been embedded to decide upon the moment of contract formation by post. Which was found difficult to disclose when communicating acceptance or agreement terms by post, where a precise time of the acceptance was unsure. Due to the delay in the postal communication, the parties could not simultaneously be knowledgeable of an acceptance. This then raised a frequent amount of cases
DANE GARBETT*
CONTENTS
I | Introduction | 1 | II | What Is The Postal Rule | 2 | III | Justification of the Postal Rule | 2 | IV | Application of the Postal Rule | 4 | V | Conclusion | 6 | VI | Bibliography | 7 |
I Introduction
The decision of distance contracts has been one of the major issues that arise within contract law. In which questions had risen in regards to the application of the postal rule and whether it should continue. A strong debate has been frequent lately in regards to its relevance, especially in a time where postal systems aren’t as reliable as the once were, in which agreements are more likely to be discussed throughout electronic means. This paper will discuss two main arguments. The first one conversing justification of the postal acceptance rule, whilst the other analyses the application of the postal acceptance rule throughout electronic communications such as email or fax.
II What is the postal acceptance rule?
It is the rule (stated by the High Court in a case in 1957 which is still good law) that a contractual offer may be accepted by post and will be deemed accepted at the time the letter is sent – not when it is proven received – if it was contemplated that post was a means by which the offer might be accepted. In which a contractual offer is an agreement that contains promises between two or more parties with intentions of constructing certain legal rights and obligations, which is enforceable within a court of law. This can be a written or orally offered. The Postal Acceptance rule is a rule that has been embedded to decide upon the moment of contract formation by post. Which was found difficult to disclose when communicating acceptance or agreement terms by post, where a precise time of the acceptance was unsure. Due to the delay in the postal communication, the parties could not simultaneously be knowledgeable of an acceptance. This then raised a frequent amount of cases
Bibliography: Texts/Journals/Articles/Websites BLO1105 Business Law, (2nd edn; Pearsons: Freser and Gibson, 2012), LAW STUDENT FORUM, ‘Email - postal rule v Entores?’ law student forum [web page](2012) <http://www.lawstudentforum.co.uk/threads/email-postal-rule-v-entores.12538/> accessed 20th April, 2012 Geoff Lindsay, Contract (Lawbook, 5th ed, 2004) Parker, D and Box, G, Business Law for Business Students (Lawbook, 2008) Case law Reese Bros Plastics Ltd v Hamon-Sobelco Australia Pty Ltd (1988) 5 BPR 11,106 Eastern Power Ltd v Azienda Communale Energia & Ambiente (1999) 178 DLR (4th) 409 at 415-418 [ 1 ]. legal it, ‘Does the postal acceptance rule apply to email?’, Legal it [web page] (2012) , accessed 20th April. 2012 [ 2 ] [ 3 ]. Marwan Al Ibrahim Ala’eldin Ababneh and Hisham Tahat, ‘The Postal Acceptance Rule in the Digital Age’ Journal of International Commercial Law and Technology Vol.2,Issue 1(2007) [ 4 ] [ 11 ]. law teacher, ‘Adams and Lindsells, contract law case’ Law teacher [web page] (2012) , accessed 20th April. 2012 [ 12 ] [ 13 ]. Geoff Lindsay, Contract (Lawbook, 5th ed, 2004), 40 [ 14 ] [ 15 ]. Law student forum, ‘Email - postal rule v Entores?’ law student forum [web page](2012) accessed 20th April. 2012 [ 16 ] [ 21 ]. Eastern Power Ltd v Azienda Communale Energia & Ambiente (1999) 178 DLR (4th) 409 at 415-418