The Postal Rule's Impact on Company and Business Law Contracts

This report provides an in-depth analysis of the postal rule within the context of company and business law. It begins with an explanation of the postal rule, detailing its origins, purpose, and continued relevance in contract law. The report then examines the impact of common law legislations on the postal rule of acceptance, providing a historical context and legal framework. A significant portion of the report addresses the question of whether the postal rule should apply to modern communication methods, such as email, considering the challenges and implications of electronic transactions and the Electronic Transactions Acts of 1999 and 2000. The report concludes by summarizing the key findings and emphasizing the significance of the postal rule in ensuring effective and secure communication in business transactions.

COMPANY AND
BUSINESS LAW

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................4
A Explanation about the postal rule and reason behind its creation and continued application. 4
B Legislations of common law impact on the postal rule of acceptance...................................6
C Should the postal rule apply to email and other forms of modern communication................7
`CONCLUSION..............................................................................................................................8
2

INTRODUCTION
Company and business law refers to the legislation that formulate for provide the way to
establish an organisation in an effective manner. It helps to company to design and the rules,
regulation, policies, practices through which firm can conduct its business operation and function
in better manner. In addition to this it also eliminates illegal and unethical activities and practices
of organisation with help of company and business law. In this manner, government have
developed postal rule which is rule of contract law under which acceptance is only created when
offeree communicate directly to the offerer. The present report provides depth knowledge and
understanding about postal rule and its impact upon the business firm. In addition to this, impact
of electronic transaction act 1999 and electronic transactions act 2000 have on the postal rules of
acceptance has been also addressed in this report.
MAIN BODY
A Explanation about the postal rule and reason behind its creation and continued application
As per the UK government regulation, while two or more parties enter into a legal
contract then there must be develop a proper offer and proper acceptance. A valid offer must
have some terms and condition1. The person who makes offer is known as offerer and a person
who accept the offer or to whom the offer is being made is known as the offeree As per the UK
regulation, while any two person offer something to another person then there must be a proper
acceptance. While any person offers something to offeree then acceptance must be in oral and
written form and it must be included all terms and conditions which offerer made2.
1
? Fitzpatrick ,Symes , Veljanovski, Parker Business and Corporations Law, 3nd Ed.,
(Lexis Nexis Butterworths 2017). Chapter
2
? Vermeesch, Lindgren, Business Law of Australia Butterworths, 12th Edition, 2011.
3

In the United state, the posting rule or mail box rule is also known as the Postal rule.
Sometime it also called deposited acceptance rule which is general rule of contract law in
common law countries. As per this posting rule, acceptance of an offer created and accepted
when it is communicated to the offerer. In addition to this, acceptance is effective while a letter
is posted or dropped in a post box. Furthermore, an offer is only valid and effective while it
received by offeree in form of post and letter and acceptance is effective as soon as it is posted.
This posting rule implements only to acceptance and other contractual letter do not take effect
until the letter is delivered3. In a simple word it can be said that postal rule are exception of offer
and acceptance rules defines some issue and problem which faced by offerer and offeree in
distance communication. Since 1818, due to changing information technology, this postal rule
has slightly changed and developed.
This rules in the common law has been established by a series of 19th century cases. It is
created in the Adam v Lindsell B & Ald 681.The court had decided the formation of contract by
mail. The long distance communication generates some questions regarding to the time and type
of contract formation. While remote communication generates between business parties then
they are not being able to fact connection. In this kind of communication, there may raise several
questions related to offer and acceptance so postal rule has been developed to resolve this kind of
conflicts and issue between parties related to communication and acceptance4. In the contract act
1952 section 4 postal rule defines that the communication of acceptance is complete as against
the proposer when it is put in a course of transmission to him to be out of the power of the
acceptor. As per the section 4 stated that the communication for acceptance is complete as while
accepter properly accept it. Postal rule is used to solve problematic cases related to delay in
connection and communication. The major reason for creation of this postal rule is to save the
time of communication between the parties because while they communicate with mail then they
can properly talk about offer as well as an acceptance. As per the section 4 (2)(b) of the contract
3
? Graw, Parker, Whitford, Sangkuhl and Do, Understanding Business Law 7th ed LexisNexis
Butterworths, 2015.
4
? Lipton , Herzberg, and Welsh, Understanding Company Law, 18th edition 2016
Thomson Reuters.
4

act 1950 acceptance by post takes effect while the offerer send the letter and mail and receiver do
not have accepted it. While two parties communicated by post in which the precise time of the
acceptance could not be determined5. In addition to this, while offer mail for something to
offeree for a few days and both parties could not aware of the communication at the same time.
By this kind of procedure of communication may create lost of problem among offerer and
offeree that is why postal rule has been created. The postal rule has been created by the Adam v
Lindsell and Henthorn v Fraser under which they stated that acceptance is only created while it
communicated directly to the offerer.
Due to changing information technology, people can communicate with each other by
various methods such as telephones, email, online chatting etc. While professionals
communicates their messages and view by use of email and other method then general
acceptance rule could apply. In the Website acceptance, rule depend upon the actual time and
space between spending and accepting the contract. However, email communication is different
as compare to the website contract. In the email contract, sometime due to the improper internet
connection and computer mistakes email takes several minutes or longer period to deliver to
receiver. Due to the timing issue in the electronic transaction email might not be treated the same
as contracting through website which is generally regarded as an example of instantaneous
method of communication. There may de;lay and failure of communication through email and
other method of communication. Parties can not get instant communication with each other so in
order to overcome this issue postal rules has been developed which should applied to email
contract but there are no legislation and regulation acts to decide the time and status of email.
B Legislations of common law impact on the postal rule of acceptance
The electronic transaction act 1999 was established on March 15th 2000 as a Part of
Australia government strategic policy. The major objective of this act is to recognise the
significance of the electronic transaction and promotes business and community confidence in
the use of electronic transactions. Another major reason for the development of this act is to
determine the time and place of the dispatch and receipt of an electronic communication. It
enables business and the community to use electronic communication. As per the section A the
5
? Gurjão, Lívio M., et al. "Illegal trade of aquarium species through the Brazilian
postal service in Ceará State." Marine and Freshwater Research 69.1 (2018): 178-185.
5

provision applying to contract involving electronic communications. A portion of an electronic
communication containing an input's error can be withdrawn in certain circumstances. As per the
section 7 A this regulation provides all provision of this act related to requirement, permission,
electronic communication other6.
The major impact of electronic translation act 2000 and electronic transaction act 1999 have
great impact upon the postal rule of acceptance by which all information related to the subject
can transfer with help internet, mail and other method of internet. With help of this acts
information related to the subject can securely and timely transferred to the person on the various
methods of internet like email etc7. As per the section 1 of electronic transaction act 1999 an
electronic signature incorporated into or logically associated with a particular electronic
communication and electronic data. The major purpose of this section is to used by the the
desertification by any person of such a signature8. As per these legislations, all information
which share on the internet by email and other method should be in written format and should
have proper signature. Section 2 stated that It must be content under a specific document along
with signature of offerer and sender. In addition to this, there must requirement to record
information and retain a document9. Another major purpose of these legislations is to made for
determining the time and place of the dispatch and receipt of an electronic communication.
By these two regulation and legislation the postal rule of acceptance in hugely influenced
because all rules which associated with these laws is directly applied on the postal law under
6 Trad, Antoine, and Damir Kalpić. "The Business Transformation Framework and its Business
Engineering Law support for (e) transactions." Encyclopedia of Information Science and
Technology, Fourth Edition. IGI Global, 2018. 636-650.
7 Williams, James G. "On-Line Credit and Debit Card Processing and Fraud Prevention for E-
Business." Encyclopedia of Information Science and Technology, Fourth Edition. IGI Global, 2018.
2707-2722.
?van Rhee, C. H. "Approximation of civil procedural law in the European Union." From
common rules to best practices in European civil procedure. Nomos/Hart, 2018.
8 Shahab, Sina, J. Peter Clinch, and Eoin O’Neill. "Accounting for transaction costs in planning policy
evaluation." Land Use Policy 70 (2018): 263-272.
9 Lambrechts, Dirk. "Second-hand Goods Act 6 of 2009-time for training!?." Servamus Community-
based Safety and Security Magazine 111.1 (2018): 62-66.
6

which communication on the email should be proper signature and content in the document.
With help of these two legislation, all information can securely communicate and transfer
between two and more people. As per this act of electronic communication act, The time of
receipt of the information letter should consider while the electronic communication enters in the
information systems10.
C Should the postal rule apply to email and other forms of modern communication
Postal rule is the contract law which is formulated in order to establishes direct communication
between two parties. Yes, postal rule should be implemented in email's and other mode of
communication as it helps in making interacting confidential and safe for the parties involved in
communication. It is the rule which enable protection in distance communication and is
enforced to favour consumers. The rule of enhanced by Adams V Lindsell after analysing a delay
and hindrance in post system. Further, it has been analysed that there are various cases of breach
of contract and duty of care due to which implementing postal rule has become important part of
communication. The postal system gives rise to risk like, delay, loss mail and damage therefore
in accordance to this implementing postal rule in communication via mail and other modern
technology plays a vital role in establishing security and confidentiality. However, with the help
of postal code the contract is valid and considered only after implementation of postal rule. In
this the communicating and post is complete when acceptance is received by offerer. It is the
most beneficial approach at the time of online transaction and online shopping. In this the
electronic transactions are monitored and governed by electronic commerce regulation 2002.
Further, with the help of this regulations electronic process becomes safe for the buyers and
sellers as it assist in easy interaction which is monitored and governed by legal authorities.
Apart from this the postal rule determines solution to problems which arise at the time of distant
communication. The effectiveness of distant communication via postal rule is demonstrated by
monitrance of electronic transactions act 1999 and electronic transaction act 2000. The rule is
enforced to resolve problems which arise at the time of distant communication between offeree
and offerror. With the helps of this rule business parties can communicate with each other if in
case of any question and queries. It helps the customers in connecting with sellers in case of
delay in order or transactions. It is the most effective rule which enables trust of people on trade
10 Springer, Thomas Hardy and Victorian Communication: Letters, Telegrams and Postal
Systems. (Koehler, Karin, 2016).
7

activities as it provides a governing rule of interaction worldwide. Thus, in accordance to
benefits it has been analysed that it is important to enhance portal rule as it assist in effective
distant communication11. As per the development it has been demonstrated that enhancing rule
will assist in establishing security in distant communication via various modern communication
technologies. The rule is basically applies to the mail and telephonic communication between
parties. Hence, it can be stated that is the most effective rule which provides security to people
cross the globe in trading on international level12. This rule is mostly facilitated safe and
confidential business communication which assist the firm in maintaining healthy business
performance. Henceforth, with the discussion it has been demonstrated that it assist in removing
the communication gap which causes hindrance in types of transaction and business deals13.
CONCLUSION
From this entire discussion about the postal rule and legislation it has been concluded that
acceptance of an offer created and accepted when it is communicated to the offerer. In addition
to this, acceptance is effective while a letter is posted or dropped in a post box. In addition to
this, while offer mail for something to offerer for a few days and both parties could not aware of
the communication at the same time. Due to overcome the issue of the miss communication and
time issue in the connection by email and other method of internet, postal rule has been created
by the Adam v Lindsell B & Ald 681.
11
? Hart Publishing, Entering into contracts electronically: the real www. (Murray,
Andrew 2012).
12
? Taylor & Francis, Congressional Communication in the Digital Age. Vol. 20.
(Evans, Jocelyn, and Jessica, Hayden, 2017).
13 Lu, Qin-fen, et al. "Simulation Software for CRH2 and CRH3 Traction Driver Systems Based on
SIMULINK and VC." China's High-Speed Rail Technology. Springer, Singapore, 2018. 515-525.
8

REFERENCES
Hart Publishing, Entering into contracts electronically: the real www. (Murray,
Andrew 2012).
Taylor & Francis, Congressional Communication in the Digital Age. Vol. 20. (Evans,
Jocelyn, and Jessica, Hayden, 2017).
Springer, Thomas Hardy and Victorian Communication: Letters, Telegrams and Postal
Systems. (Koehler, Karin, 2016).
van Rhee, C. H. "Approximation of civil procedural law in the European Union." From
common rules to best practices in European civil procedure. Nomos/Hart, 2018.
Graw, Parker, Whitford, Sangkuhl and Do, Understanding Business Law 7th ed LexisNexis
Butterworths, 2015.
Lipton , Herzberg, and Welsh, Understanding Company Law, 18th edition 2016 Thomson Reuters.
Gurjão, Lívio M., et al.
"Illegal trade of aquarium species through the Brazilian postal service in Ceará State." Marine and
Freshwater Research 69.1 (2018): 178-185.
Fitzpatrick ,Symes , Veljanovski, Parker Business and Corporations Law, 3nd Ed., (Lexis Nexis
Butterworths 2017).
Chapter Vermeesch, Lindgren, Business Law of Australia Butterworths, 12th Edition, 2011.
Lambrechts, Dirk. "Second-hand Goods Act 6 of 2009-time for training!?." Servamus Community-
based Safety and Security Magazine 111.1 (2018): 62-66.
Trad, Antoine, and Damir Kalpić. "The Business Transformation Framework and its Business
Engineering Law support for (e) transactions." Encyclopedia of Information Science and
Technology, Fourth Edition. IGI Global, 2018. 636-650.
Williams, James G. "On-Line Credit and Debit Card Processing and Fraud Prevention for E-
Business." Encyclopedia of Information Science and Technology, Fourth Edition. IGI
Global, 2018. 2707-2722.
Shahab, Sina, J. Peter Clinch, and Eoin O’Neill. "Accounting for transaction costs in planning policy
evaluation." Land Use Policy 70 (2018): 263-272.
Lambrechts, Dirk. "Second-hand Goods Act 6 of 2009-time for training!?." Servamus Community-
based Safety and Security Magazine 111.1 (2018): 62-66.
Lu, Qin-fen, et al. "Simulation Software for CRH2 and CRH3 Traction Driver Systems Based on
SIMULINK and VC." China's High-Speed Rail Technology. Springer, Singapore, 2018.
515-525.

Acheampong, Patrick, et al. "DETERMINING THE MEDIATING EFFECTS OF TRUST ON E-
PAYMENT READINESS IN GHANA: CONSUMERS’PERSPECTIVE ANALYSIS."
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