Business Law: Postal Rule, ACL, Negligence, Contract Formation

Business Law

Table of Contents
Answer 1....................................................................................................................................3
Answer 2....................................................................................................................................3
Answer 3....................................................................................................................................3
Answer 4....................................................................................................................................4
Answer 5....................................................................................................................................4
Answer 6....................................................................................................................................4
Answer 7....................................................................................................................................5
Answer 8....................................................................................................................................5
Answer 9....................................................................................................................................5
References..................................................................................................................................6

Answer 1.
The defendant cannot deny their negligent actions and they will have to pay damages to
Primrose because the negligent construction evidently harmed various other attendees as
well. They cannot deny their negligence based on reasonable foreseeability because it was
their duty of care and due diligence to make proper arrangements for the attendees (Taggart
& Squire, 2016).
Answer 2.
The ‘Postal Rule’ is a rule of contract law and is considered as an exception to the general
rule because acceptance is only created when communicated to the offeror directly. The
contract is said to be created when the acceptor reply to the mail of offer to the offeror even if
never reaches the offeror and that is why, it is also known as ‘mailbox rule’ (Duhaime.org,
2018). It means that the offer is said to have been accepted when it is posted by the acceptor.
I would advise the client if he or she is an offeror to post or mail their acceptance to the
offeror in order to avoid the operation of the ‘postal rule’ in the process of contract formation.
Being an offeror, he or she should not sell to another without being liable in damages for the
breach of contract.
Answer 3.
As Edward immediately posted the letter of acceptance along with the money order, the
offeror Bella should have wait for the response from him because as the contract formation
existed between them. Edward is correct and postal rule applies in this contract. He should be
entitled to the coin. As Bellahad no right to sell the coin before receiving acceptance from
Edward because she offered both Edward and Jacob but sold the coin to Jacob. Moreover,
postal rule applies in this contract because Edward posted the letter of acceptance even if it