Importance Of The Postal Rule

SHOULD THE POSTAL RULE BE DISCARDED?

Introduction

The “Postal Rule”, commonly known as the “Mailbox Rule” is a principle of contract law. The postal rule will apply when the parties have agreed on the means of communication being carried out only through the postal system. This rule is different from the others, though, as it forms an exception to the general principles of the communication of acceptance. It originated in the English case of Adams v. Lindsell , in the year 1818. The postal rule in England states that a contractual offer, when sent by post, is considered accepted when it is sent-as opposed to when it is received by the receiving party. In India, though, the specifications of this rule are different. This rule has recently

Also, the mail must be z“contemplated as a viable means of communication” .In England, The ruledoes not applywherever the means of communication are deemed instantaneous. In India, too, the principles of the postal rule have been applied, as seen in the case of BhagwandasGoverdhandasKediavs M/S. GirdharilalParshottamdas . The essence of the law in India and England is the same, but there are certain differences in the way the rule is followed. The major difference is that, as per the section 4 of the Indian Contracts Act, although the offeror is bound when the acceptor posts the latter, the acceptor is bound by the contract only when the acceptance reaches the offeror. Meanwhile, the section 5 of the IAC dictates that if the offeror decides to revoke the contract, the same can be done via faster means of communication (e.g., instantaneous communication methods). The postal rule, like in England, is not applicable to instantaneous means of communication in India

Also, they will not be responsible for the delay because the burden of uncertainty of waiting is with the offeror. One thing about the postal rule needs to be understood- the burden of its authority can easily be changed, or completely waved off by the offeror in the terms of the offer. Also, a certain requirement in the kind of communication of acceptance that the offeror wants needs to be met by the acceptor. Such a specified requirement may only be replaced if it does not put the offeror at a disadvantageous position. For example, an email is interchangeable with a telephonic conversation. Hence, the offeror is not at a disadvantage because of the Postal Rule. Moreover, it would only be unfair to the acceptor if the offeror was permitted to go back on his offer after the acceptor has accepted the same, hence benefitting the acceptor as well. The rule merely goes about balancing the power levels between the two