Postal rule CASES

In English law, the postal rule is an exception to the general requirement for acceptance of contracts to be communicated, stating that acceptance is effective upon posting, rather than when received by the offeror.

Definition and Principles

The postal rule applies when acceptance by mail is considered appropriate. Once acceptance is correctly posted, a binding contract is immediately formed, regardless of delays or failure in delivery.

Key Conditions

  • Proper Posting: Acceptance must be correctly addressed, stamped, and posted.
  • Reasonable Method: Postal acceptance must be an agreed or reasonable mode of communication.
  • Exclusion: Parties may explicitly exclude the postal rule in their contract.

Practical Implications

The rule provides certainty and protection for offerees, enabling reliance upon acceptance once dispatched. Offerors must clearly specify acceptance methods if postal rule application is undesired.

Limitations

The postal rule does not apply to instantaneous forms of communication such as email, fax, or telephone.

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Adams v Lindsell [1818] EWHC KB J59 (05 June 1818)

Facts The defendants, wool-dealers in St. Ives, sent a letter to the plaintiffs, who were woollen manufacturers in Bromsgrove, on 2 September 1817, offering to sell them a quantity of wool. The defendants required an answer ‘in course of post’. Critically, the defendants misdirected this letter to ‘Bromsgrove, Leicestershire’, instead...