Acceptance: Postal Rule

[Flash Card 1 of 2]

• creates exception: acceptance complete on posting / general rule: acceptance completed when communicated
• wool / in course of post / delay / today not revoked (Adams v Lindsell (1818))

Certainty

• acceptor: binding contract once posts acceptance / offeror: if stipulates must receive ousts postal rule
• shares / lost in post / binding on posting / Thesiger: post office common agent / Bramwell: offeror avoid if states: Your answer by post is only to bind if it reaches me (Household Fire & Carriage Accident Insurance Co. v Grant (1879))

Limitations

• only applies to acceptance not other communication between parties / by post
• if not apply: acceptance effective on communication (receipt of letter)

Not apply: unreasonable for acceptance be sent by post

• telegram offer / implied speedy acceptance required (Quenerduaine v Cole (1883))

Not apply: not properly stamped / addressed / posted

• bank / unauthorised postman (Re London & Northern Bank, ex p. Jones [1900])

Not apply: if displaced by offeror

• property option / Latwon: implied must receive: notice.. to / manifest inconvenience & absurdity (Holwell Securities Ltd v Hughes [1974])

bits of law

Acceptance: Postal Rule

[Flash Card 2 of 2]

Retraction

• acceptor able to retract before communicated? / strictly not as binding once posted
• debate / no English authority

For

• rule benefit acceptor / should not disadvantage / offeror not suffer: unaware & can't act
• servant / Scottish / acceptance retracted / but unclear majority (Countess of Dunmore v Alexander (1830))

Against

• unfair bias: acceptor benefit certainty & speculate by using retraction / imbalance if contract formed by postal rule: acceptor retract / offeror not revoke
• marriage / New Zealand / acceptance not retracted / but third party issue (Wenkheim v Arndt (1873))

bits of law