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Essay On Postal Rule

2065 Words9 Pages

Should the postal rule still apply in modern day contracts by email?

Introduction
The Postal Rule has been a rule in contract which has withstood the test of time. We will be analysing whether this long standing rule should apply to modern day contracts conducted by email. We will discuss the Postal Rule and its birth, and determine whether it is an instantaneous form of communication through applications of case law and legislature.

Background - The Postal Rule in a Historical Context
The general rule in contract law is acceptance to an offer is deemed to have occurred when it has been communicated to the offeror. This rule was confirmed in Entores Ltd. v Miles Far East Corporation. Per Denning LJ, if the contract was to be concluded …show more content…

In addition, they point out that often times, email delays are brief in contrast to the postal system, which may take weeks prior to reaching the intended destination. Another point to note is that email delays may not be caused by physical distances, as post is, and as such, the two cannot be deemed as analogous.

United Nations Commission on International Trade Law (“UNCITRAL”) Model Law on Electronic Commerce

The Model Law on Electronic Commerce introduced by UNCITRAL may give us a rough guideline on how to approach contracts conducted by electronic means. In particular, Article 15 of the Model Law concerns the time and place of dispatch and receipt of data messages.

Article 15(1) states “dispatch of data message occurs when it enters an information system outside the control of the originator…”. In theory, this is in line with the Postal Rule in that dispatch occurs once the sender does not have control. It also specifies a point in time in which the sender does not have control, that is, when it enters a different information system which the sender cannot

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