Critical point did the postal rule apply if the offeror requires a notice in writing to accept? cf., 56 Baylor L. Rev. Acceptance of the offer. Subscribe to our free update service: A further two decades on, when we're at iPhone iteration number 5 and the excited puzzling over how to deal with the telex seems laughable, how far have got down the road of reform? In the process the communication between the parties is fundamental. Mailing often lasts for a few days and both parties could not aware of the communication at the same time. The rule governs when an offer is accepted. Another way to exclude the postal acceptance rule is if mail is not a relevant way of acceptance. In general offer and acceptance rules, an offer could be withdrawn or revoked anytime before its acceptance. An offer made by post is not effective until received by the. The post, which used to take several weeks, arrives after a few days and modern communication systems like fax, telephone and email were established. Specifically, the Commission's . Website acceptances are clearer that general rules of offer and acceptance could be applied to. Such a definition would remove the need for a trusted third party and would encompass all non-instantaneous methods of communication (including those not yet invented). To study the postal rule thinking about modern-day correspondences, it is first important to research the customary law concerning provide and acknowledgment by way of post. In summation, it seems the postal rule is not completely outdated; it can still apply to modern non-instantaneous methods of communication such as email. Australian government especially the Electronic Commerce Expert Group which was established to report the issues relating to ecommerce adopted UNCITRAL to deal with conflicts in B2B business. However, there are some instances where the dispatch doesnt automatically mean acceptance has been communicated. Postal rules were developed to solve the conflicts and problems in contract communication and acceptance. (1995) the communication was sent by telex not email. Registered office: Creative Tower, Fujairah, PO Box 4422, UAE. 22 (2001): pp. In email contracts, there is absence of legislative establishment regarding to determine the acceptance or revocation of offer. Keywords contract law, e-commerce, online contracting Discipline Contracts | Internet Law Publication Journal of Contract Law Volume 26 Postal rules were created in 19th century to solve distant business conflict and continued to be applied to current business situations. The contract is only complete when the acceptance is received by the offeror; and the contract is made at the place where the acceptance is received. Nowadays offer and acceptance are communicated more and more electronically besides the traditional way of written letters. The views and opinions of the authors expressed in the Web site do not necessarily state or reflect those of the Lawyers & Jurists. There telex is treated in the same manner as the regular post. UNCITRAL ensured that people would benefit from the growth of new information technology (IT). In addition, this paper also discusses the impact of the Electronic Transactions Act 1999 and the Electronic Transactions Act 2000 on the postal rule. The postal acceptance rule only applies to the non-instantaneous communication i.e. The fact that parliament have not legislated on the subject whereas they have given clarity to contracting through websites may suggest that it is their intention for the traditional postal rule of apply[31]. Home Law and Ethics THE POSTAL RULE OF ACCEPTANCE. Law of contract requires a firm offer and acceptance to be in place, this is to ensure that there is surety between transactions and maintains that our country is an attractive on a commercial basis; the communication of acceptance is an important part of this procedure and thus the law regarding it requires transparency. An acceptance is that, a final and unqualified expression of assent to the terms of an offer. The main reason for this rule is historical, at the the time when postage of a letter is slower and less reliable than it is today, in the 21st century. The posting rule is an exception to the normal rules for acceptance, which state that acceptance only occurs when it is directly communicated to the party that made the offer. Defendant mailed a revocation of offer on October 8, which was received by Plaintiffs on October 20, after Plaintiffs had already made assurances to sell the tin plates to another party. The postal rule of acceptance does not apply to revocations of offers (If a letter of acceptance is posted after a letter of revocation has been posted, but before that revocation is receives . 195; cf., Marin Motor Oil, Inc.1984 740 F.2d at 227-29. The main argument regarding the purpose and reasons behind the postal rule when it was created in the 18th Century, namely as it was the only form of communication apart from face-to-face. 2. 4 cf., Stone, R. (2008): pp. The initial fascination with 'everything Internet' and the persistent trend to equip otherwise unexciting legal . At what age do you stop working in Canada? The court decided the former to be the case on the basis that the acceptance was effective at the moment of posting and not at receipt, thus the defendants were in breach of contract. J. The postal acceptance rule states that where an acceptance is to be sent by post, the contract associated with that acceptance is considered as concluded at the moment of posting the letter, not when the letter is received (or in fact if the letter is received). Two parties communicated by post in which the precise time of the acceptance could not be determined. However, a problem arises where an instantaneous method is used but the message is not actually instantaneous, Lord Fraser dealt with this problem in Brinkibon Ltd v Stahag Stahl[14]and stated that responsibility and risk was on the person who receives the message if they choose not to man their machines[15]. To discover whether an agreement has been reached under a classical contract theory, an acceptance which matches the offer that has been made is required. Lastly, the rule is easily displaced, for example, it may be excluded by the offeror either expressly or impliedly. . This leads to the question, if the postal rule apply to email?9. When the company went bankrupt, Mr. Grant was sued for the outstanding payments on the shares, the issue here was, whether Mr. Grants offer for shares had been validly accepted, and whether there was a binding contract for him to settle the payment. The mailbox rule (also called the posting rule), which is the default rule under contract law for determining the time at which an offer is accepted, states that an offer is considered accepted at the time that the acceptance is communicated (whether by mail e-mail, etc). Another advantage of using the postal rule is the use of last-minute acceptances. Take a look at some weird laws from around the world! Focus on whether the postal rule ought to apply to instantaneous methods of communication. Copyright The Student Room 2023 all rights reserved. However the Lawyers & Jurists makes no warranty expressed or implied or assumes any legal liability or responsibility for the accuracy, completeness or usefulness of any information, apparatus, product or process disclosed or represents that its use would not infringe privately owned rights. There is difference between acceptance and revocation of an offer by post. However, the offeror can stipulate in the contract that the postal rule is not applied.4, There are some problems in relation to the postal rule. This is a trusted computer. Does the Postal Rule apply to E-Mail? However such a simplistic rule that can be applied to this traditional form of communication enables the law to remain accessible and in the consumers favour. 2.2 Postal Rule, 3. The . The plaintiff replied at once accepting, but the defendant, having decided that because of the delay the plaintiff were not going to accept, had already sold the wool elsewhere. In contrast, the way via the internet takes some time and therefore cannot be classified as instantaneous.10 In the following discussion, the main focus is on the email via the internet. Does the postal rule or the receipt rule apply to an e mail accepting an offer? Constitution of the trust - gifts vs trust (also confused). If an offer was made via telephone then the offeree must reply his acceptance with either the same method or a faster one. Both sender and receiver could not communicate directly between each other. The rule was created in Adams V Lindsell[2]where, through misdirection in the post, the defendants offer was delayed which subsequently caused the plaintiffs communication of acceptance, also by post, to be delayed too. The rule was made in Adams V Lindsell. The effect of this rule is that the acceptance is valid before it is actually communicated to the offeror. Since there are many delays and failure situation in sending and receiving message through emails, parties could not get instantaneous communication between each other. In this case, Mr. Grant applied for shares in the Household Fire and Carriage Accident Insurance Company. If the interaction resembles face-to-face dealings, the application of the principle is unquestionable. 2. 9 cf., J. of Int. Acceptance is effective as soon as it is posted. A formation of a contract requires an agreement, it follows that, in order for such agreement to be reached, there must be an offer made by one party which is accepted by the other. Download for offline reading, highlight, bookmark or take notes while you read The Postal Rule of Acceptance in a Digital World. A letter of allotment then was posted to the defendant, but it never reached him. Postal rules are exceptions of offer and acceptance rules defining some special problems in distant communication. The first one examines the justifications of the postal acceptance rule, while the second part analyses thoroughly the application of postal acceptance rules to email contracting. 1 cf., Quarterly Review (1825), March Vol. The Postal Acceptance Rule in the Digital Age. Email is a system that is remarkably similar to post but on a speedier basis, it seems only logical that when email messages between parties are truly instantaneous and direct should the receipt rule be considered. Issues of acceptance do not arise in this case since the letters were all received within time. The postal rule therefore does not apply as internet contracting is held to be a method of instantaneous communication, the regulations are a form of primary legislation which means parliament preferred the 'receipt' rule over the 'dispatch rule' in this situation. To discuss the postal rule in light of modern communications, it is first necessary to explore the traditional law concerning offer and acceptance by post. You must include language in the email that the later written agreement be executed by someone who has the legal authority to sign a contract for you or your business before you are considered contractually bound. For a valid acceptance, acceptance must not only be made by the offeree but it must also be communicated by the offeree to the offeror. The offeror, to have a change in mind or a withdrawal of the offer, or made an offer with someone else is possible but nevertheless, the court looked into the conduct business would be better served by giving the offeree certainty, thus the postal rule was created. In English Law, the Postal Rule, true to its name, is applicable only to acceptances communicated via post or telegram. Indeed, due to the difficulties in applying the "instantaneous" test to emails, emails would still be subject to the postal rule. Published: 20th Sep 2021, Jurisdiction / Tag(s): Wherein, thru confusion inside the summit. To learn about our use of cookies and how you can manage your cookie settings, please see our Cookie Policy. The postal rule was established around the 19th century, as can be seen in the case of Adam v Lindsell. Besides that, we have lawyers from top law schools who have extensive experience in international as well as local legal affairs. The purpose of this term paper is to critically discuss the arguments for and against the question, does the postal rule apply to email? Expressed in the Household Fire and Carriage Accident Insurance Company there telex is treated in process! 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