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Corporation Law Assignment

   

Added on  2020-05-16

10 Pages2382 Words162 Views
Running Head: Corporation law1Corporation Law

Corporation Law2Part AIssues related to postal rule are considered as controversial part of the contract law, as it includes the question related to the time and type of contract formation. There is requirement of remote communications when parties to the contract are not available for discussing every fact related tothe transaction, otherwise it impose various questions related to the offer and acceptance of the contract. This rule is introduced for the purpose of solving the struggles and glitches in the communication of contract and acceptance. This section of the paper discusses the meaning and history of the postal rule1. Meaning- offer and acceptance are considered as two important elements of the law of contract and these two elements consider the presence and processes of the contract between the parties. Postal rule is considered as immunity to the basic rules of offer and acceptance. Generally, offer and acceptance rules stated that it is possible to revoke or withdraw the offer any time before it isaccepted by other party. Postal rule is introduced by the party to resolve the problems occurred between the parties. These particular issues are raised by the different modes of communication. Usually, post or mail is mentioned as “snail mail" because it take more time to reach to recipient.This may result in issues in context of both formation and revocation of contract between the parties. Offerors are not able to known about the acceptance and revocationIn general mode of communication, it is deemed that acceptance is received when it is given to the offeror by the offeree, even though such acceptance not even read by the offeror. In case of post, special rule is applied which state that in case of post acceptance occurred when offeree post the letter. 1 ACL, Agreement, < https://www.australiancontractlaw.com/law/formation-agreement.html#acceptance>, Accessed on 23rd January 2018.

Corporation Law3This can be understood through case law Bressan v Squires, Supreme Court of New South Wales [1974] 2 NSWLR 4602. In this case, Court held that contract was not formed until acceptance related to the contract is actually communicated to the offeree, but postal rule was an exception to this general rule which states that acceptance was communicated when letter was posted by the offeror3. Creation of postal rule- this rule was introduced in case law Adam v Lindsell [1818] B & Ald 6814. In this case, court held the contract creation time through mail. In this case, two parties communicated the facts of the case through the post because of which, it was not possible to determine the precise time of the acceptance. In this mail send by the parties last for insufficient days and both the parties does not had knowledge about the communication. This issue creates number of problems and result in the introduction of postal rule. There was one more case Henthorn v Fraser [1892]5in which Court discusses the postal rule. After discussing the facts of both the cases, it can be said that when situations are of such nature that it must have been within the inspection of the parties, post can used as means of communication for the purpose of accepting the offer directed by the offeror, and in this context acceptance is completed as letter is posted. In the situation when parties made deal face to face, business parties discuss every fact and communicate whenever any issue arises. However, in the situation of distant contracting or indirect business, method of communication which is instantaneous in nature is not available. In this type of situation parties to the business are not aware of the acceptance or refusal of the 2 Bressan v Squires, Supreme Court of New South Wales [1974] 2 NSWLR 460. 3 ACL, Bressan v Squires, Supreme Court of New South Wales [1974] 2 NSWLR 460, < https://www.australiancontractlaw.com/cases/bressan.html>, Accessed on 23rd January 2018. 4 Adam v Lindsell [1818] B & Ald 681. 5 Henthorn v Fraser [1892].

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