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 rather than it reaches the knowledge of the offeror. The main reason for this rule is historical, since it dates from a time when a communication through the post was even slower and less reliable than today. This traditional view actually leads to TWO (2) major problems:
(i) There is a delay between the time it is posted which depending to the distance; and
(ii) There is a small risk due to difficulties of the address may leads to further delay or not reached at all .
The age of the earth is around 4600 million years; however it is only 1.8 million years since the evolution of Homo sapiens. We have been gone through Stone Age, Bronze Age, Iron Age and currently in the “Silicon Age”. Apparently the world is entering a Hi-Tech and modern era. In this era, the mode of communication can take many forms: face to face conversations, online business conference, telephone, letters, faxes, or email. A question arises here, as the coming of the next stage of human development, does the postal rules still remains its traditional view? Does the postal rule apply to the modern era communication such as email, courier and others? If
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 rather than it reaches the knowledge of the offeror. The main reason for this rule is historical, since it dates from a time when a communication through the post was even slower and less reliable than today. This traditional view actually leads to TWO (2) major problems:
(i) There is a delay between the time it is posted which depending to the distance; and
(ii) There is a small risk due to difficulties of the address may leads to further delay or not reached at all .
The age of the earth is around 4600 million years; however it is only 1.8 million years since the evolution of Homo sapiens. We have been gone through Stone Age, Bronze Age, Iron Age and currently in the “Silicon Age”. Apparently the world is entering a Hi-Tech and modern era. In this era, the mode of communication can take many forms: face to face conversations, online business conference, telephone, letters, faxes, or email. A question arises here, as the coming of the next stage of human development, does the postal rules still remains its traditional view? Does the postal rule apply to the modern era communication such as email, courier and others? If