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Postal Rule Case Study

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A contract is normally defined as an agreement which is enforceable by law . Offer is also known as a definite obligation or promise to be bound on specific terms and it’s accepted without modification of the content of the offer , otherwise it will become a counter offer which need to be accepted for there to be a contract . The postal rule or the mailbox rule was the creation of common law where post is widely used by us for communication and it also determines the timing of the formation of the contracts between parties . Postal rule was illustrated in the case of Adams v Lindsell ( 1818 ) where postal rule will applied by the time when the letter is posted . However there are three conditions needed to be satisfied which are the letter …show more content…

However A does not hear the reply from because of the airplane noise flying over the river . Therefore there’s no binding contract . It was stated in the general rule where the offeror is bound to accept the letter of acceptance once it’s posted which raised the issue of favouritism to the offeree . For an example if the offeror were to offer an item to several offeree and the all the offeree posted letter of acceptance , this will actually confused the offeror who is he binding contract with. In contrast with the postal rule laid down in UK and Malaysia in Contracts Act 1950 ( Malaysia ) it could shows that UK postal rule shows once the acceptance or offer letter is posted both parties will be binding . However , in Malaysia postal rule is only binding on one party when the offer or acceptance letter is posted . This has shown Malaysia rule has shown more fairness in either parties if there’s any change in circumstances for example like the letter went missing or delayed and so on despite UK has exceptions to it . On the other side , the postal rule of UK does give absolute to confidence to acceptor since it was stated in the postal rule , once the letter is posted , the contract should be held binding on both

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