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
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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
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The rule was established by Anthony in the 19th century cases‚ starting with Adams v Lindsell (1818) B & Ald 681‚ which was later confirmed in Dunlop v Higgins (1848) 1 HL Cas 381‚ Household Fire Insurance Company v Grant (1879) 4 Ex D 216 and Henthorn v Fraser [1892] 2 Ch 27. The posting rule applies only to acceptance. Other contractual letters (such as one revoking the offer) do not take effect until the letter is delivered‚ as in Stevenson‚ Jacques & Co v McLean (1880) 5 QBD 346. The implication
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justifications of Postal Acceptance Rule i. ‘Ad infinitum’ Justification Postal rule had existed almost for 200 years and the post had been creating problems for people which the courts are obliged to solve them logically. Why it had been creating so many problems for people and that we will be discussing later on. For now let’s look at the four main justifications for postal rule of acceptance. It came from Treitel and he believes that the four main justifications are for the creation of postal rule. First
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Table of Contents: Page Number Outcome-1………………………………………………………………….3 Outcome-2………………………………………………………………….5 Outcome-3………………………………………………………………….6 Outcome-4………………………………………………………………….8 Bibliography………………………………………………………………...10 Outcome 1: Before describing Bill and James legal position according to their activities‚ the formation of a contract has given below in Figure 1: [pic] By the formation of contract‚ the legal position of Bill
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negotiating at a distance by post‚ telephone‚ telegram‚ telex‚ fax or messenger the principle obviously has important applications. (Dudgale‚ 1992) However in the case of postal acceptance‚ perhaps numerically the most common case‚ the rule is subject to an exception (Dudgale‚ 1992). It was decided in Adams v Lindsell (1818) that a postal acceptance was effective as soon as it was posted even if the letter is delayed‚ destroyed or lost in the post and it never reaches the offeror. On 2nd September‚ the
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email had gone astray‚ and whether Widget could use their terms and conditions after Cobbler sent an counter-off. As there is no test case on whether an email comes under the instantaneous principle‚ or the postal rule in New Zealand‚ it is important to discuss email coming under both rules. The instantaneous principle came from Entores Ltd v Miles Far East Corp. stating that a contract is formed only‚ when the offeree receives communication of the offerors acceptance. An example of the instantaneous
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somebody who is authorised by the offeree. Operation of Postal Rule When contracting parties are bargaining at a distance‚ typically via mail‚ problem may arise because the parties could not know at the same time whether they had formed a contract. Therefore‚ a general rule indicating the time of an effective acceptance was established. The postal rule was created for convenience and certainty. It is an exception to the general rule. As established in Adams v Lindsell (1818)‚ where acceptance
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a. A postal scale for products weighting up to 2 pounds. This would be classified as a homogeneous shopping product class. The accuracy of a postal scale is highly important. If the accuracy is off valuable time and effort as well as cost could be lost. Items being mailed may require extra postage and may not get mailed and returned to the seller to add the extra postage. Or‚ if an item doesn’t have enough postage a customer may be charged to cover the cost of the postage shortage. In the business
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The Department of Posts‚ trading as India Post‚ is a government-operated postal system in India; it is generally referred to within India as "the post office". As of 31 March 2011‚ the Indian Postal Service had 1‚54‚866 post offices‚ of which 1‚39‚040 (89.78 percent) were in rural areas and 15‚826 (10.22 percent) in urban areas. It had 25‚464 departmental POs and 1‚29‚402 ED BPOs. At the time of independence‚ there were 23‚344 post offices‚ primarily in urban areas. The network has registered a
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