Essay On Postal Acceptance Rule
Introduction
It is well established that the general rule governing the acceptance of an offer is that acceptance is not effective until it is communicated to the offeror. But there exists an exception to this general rule which is known as the Postal Acceptance Rule. Although this rule applies to contract formation by post or to modes of distant communications (not instantaneous communication) but the scope and applicability of this rule to the modern forms of communication is still not determined. The issue has been debated specially in case of e-mail because of the increase in the use of e-mail as a tool for e-commerce and contract formation. Therefore it is necessary to solve the issue to determine the certainty of the rule with respect to the e-mail.
The Process of Contract Formation
A contract is defined as a legally enforceable agreement. The process begins by an offer. An offer in the generic sense is defined as signifying to another person willingness to do to something or to abstain from doing something to gain his assent. The person to whom this offer is made signifies his acceptance with the intention of indulging into a legal relationship. This is the second stage of this
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Lindsell which is a landmark case in the establishment of this rule. This rule formulates that the acceptance of the offeree will effective from the moment the acceptance is posted in the right format irrelevant of the fact that the acceptance is delayed or never reaches the offeror. The most practical application of this rule has been stated by Lord Herschell in Henthorn v Fraser; he stated:
… Where the circumstances are such that it must have been within the contemplation of the parties that, according to the ordinary usages of mankind, the post might be used as a means of communicating the acceptance of an offer, the acceptance is complete as soon as it is
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