University of Northampton: Law of Contract - Postal Rule Essay

This essay critically analyzes the postal rule of acceptance in contract law, focusing on its historical context and its relevance in the face of modern communication methods. The essay begins by outlining the general concept of the postal rule, which stipulates that acceptance is deemed effective when the acceptance is posted, even if the offeror does not immediately receive it. The essay then explores the rule's application in non-instantaneous communication, such as postal mail, and contrasts it with instantaneous communication, such as email and website contracting. The discussion includes the evolution of legal interpretations and the impact of court decisions on the application of the postal rule, particularly in the context of electronic communication. The essay concludes by assessing the accuracy of the provided statement, considering the rule's limitations and its ongoing utility in regulating offeror power. The essay also includes a bibliography of relevant journals, scholars, and case laws to support its arguments.

Running Head: POSTAL RULE OF ACCEPTANCE
POSTAL RULE OF ACCEPTANCE
Name of the Student
Name of the University
Author’s Note

1POSTAL RULE OF ACCEPTANCE
INTRODUCTION:
The general rule of acceptance is that it should be communicated directly to the party
making an offer. However the postal rule is an exception to the general wherein the parties can
enter into the contract without actual communication but exchange of offer and acceptance by
the means of a post or a mail1. The postal rule of acceptance states that the communication would
be deemed to have been accepted once the communication has been posted or mailed to the
offeror. This is because in the case of non-instantaneous mails, the receipt of the sending of the
acceptance is what notifies the sender that the mail has been sent. The sender receives no
notification upon the delivery of the mail to the addressed party.
The aim of the thesis is to establish the critical analysis on the possible use of the rule
with respect to the restriction upon the offeror to revoke the offer with substantial reference to
modern forms of communication.
GENERAL CONCEPT OF POSTAL RULE:
The general concept of postal rule states that an offer would be deemed to have been accepted by
the party once the acceptance mail or letter confirming the acceptance has been sent2. The
sending of the mail or the post refers to the handing over of the mail or the letter to the concerned
official of the post office authorized to collect and send out mails3. Thus, the theory of postal rule
is based on following criteria4:
1 Goodrich, Peter. "The posthumous life of the postal rule: requiem and revival of Adams v
Lindsell." Feminist Perspectives on Contract Law. Routledge-Cavendish, 2017. 87-102.
2 Adams vs. Lindsell [1818] B & Ald 681
3 Re London & Northern Bank [1900] 1 Ch 220
4 Mires, Stanley F. "POSTAL SERVICE." Policy (2016).

2POSTAL RULE OF ACCEPTANCE
 An offer which is made by the postal shall not be effective until the same has been
received by the party addressed. In other words, it can be explained that the offer is the
set of terms and conditions of the offer shall be accepted and the contract formed upon
the same terms and conditions shall be enforceable when the offeree sends the letter
confirming the acceptance and the offeror receives the same. The receiving of the offeror
is an important aspect to con firm the applicability of general rule of acceptance upon the
instantaneous modes of communication.
 Acceptance shall be enforced from the moment it has been posted. This is an exception to
the general principles of acceptance stating that the acceptance shall be deemed to have
been communicated from the moment the same has been posted by the offeree.
 The revocation of an offer shall be effective only when the letter of revocation has been
received by the offerree before the posting of acceptance mail or post confirming the
acceptance of the offer. In other words, it can be explained that the offer cannot be
revoked after the acceptance. Hence, for an offer to be revoked, the letter confirming the
revocation of the offer should reach or deliver to the offeree before the letter of
acceptance has been posted.
The rule is imposed so because the receipt of the sending of the letter is assumed to be the
receipt of communication5. This would bind the parties in a legally enforceable contract with all
the terms and conditions of the contract as agreed upon by the parties. This is also made so for
the protection of the rights of the offeree who has accepted the offer in all free will and genuine
honesty to enter into the contract confirming all the terms and conditions of the offer as proposed
by the offeror.
5 Butler, Petra, and Bianca Maria Mueller. "Acceptance of an Offer Under the CISG." CISG and Latin
America: Regional and Global Perspectives Eleven International Publishing, the Hague (2016).

3POSTAL RULE OF ACCEPTANCE
UTILIZATION OF POSTAL RULE WITH NON-INSTANTANEOUS
COMMUNICATIONS:
The posting rule applied mainly to the acceptance being made by the non-instantaneous
mode of communication according to which the parties would not have means to notification
upon the delivery of the message to the offeror. However, in case of other contractual letters like
offer, revocation of an offer and so on shall be applicable only upon the delivery of the letters to
the party addressed. The implication of the rule is that the offer can be revoked only before the
acceptance has been communicated6. The postal method does not notify the sender about the
delivery of the receipt and hence, the time of sending is assumed to be the communication
completed and the revocation can be made before the posting of the communication. It is
interesting to note that the acceptance is communicated upon posting of acceptance letter. The
receipt of the same to the offer is irrelevant for the contract to be enforced7. The delivery of such
letter is irrespective for the determination of the viability of the enforcement of the contract. It
imposes duty upon the offeror to maintain track and knowledge of the offer and the acceptance
forwarded thereafter8.
INSTANTANEOUS COMMUNICATION AND POSTAL RULE:
The difference between an instantaneous and non-instantaneous method of
communication is that the delivery of receipt of the letter to the sender is not notified in the
former while in the latter, the message is delivered instantaneously as the message is send and
the delivery of the same is notified to the sender of the acceptance letter9. The rule of
6 Stevenson, Jacques & Co vs. McLean [1880] 5 QBD 346
7 Byrne vs. Van Tienhoven [1880] 5 CPD 344
8 Che Hashim, Rosmawani. "Postal rule in acceptance via email." Commonwealth Law Bulletin 44.1
(2018): 111-127.
9 Entores Ltd vs. Miles Far East Corporation [1955] 2 QB 327

4POSTAL RULE OF ACCEPTANCE
instantaneous communication is an exception to the general principles of postal rule which in
itself is an exception to general principles of acceptance.
EMAILS AS INSTANTANEOUS OR NON-INSTANTNEOUS
COMMUNICATION:
E-mails have been involved in various controversial statements regarding the
instantaneous nature of their communication. It has been explained that in case of cross-country
communication, e-mails are the recognized form of communication. It is the instantaneous or the
non-instantaneous nature of the e-mails which are controversial to the application of postal rule.
The rule as per the instantaneous communication is that the acceptance shall be deemed from the
time it is delivered to the addressed party and not from the time it has been sent by the sender10.
However, the postal rule is established on the condition that it must be reasonable for the
addressee to receive the letter11. Thus, the determination of acceptance in case of e-mails depends
upon the nature of the notification received upon sending of the e-mail by the sender. The nature
of the instantaneousness of the e-mail is dependent upon the notification received by the sender
upon sending the mail and hence, it can be stated, that if the notification is received immediately,
then the email is considered to be an instantaneous form and if the notification is received after
sometime then the communication is established as the non-instantaneous form12. However, it is
also important to observe that the time between sending of the mail and receiving of the
notification of the mail being sent is what is the determining factor for the email to be considered
as a instantaneous or the non-instantaneous form of communication. The underlying ambiguity
10 Brinkibon Ltd vs. Stahag-Stahl and Stahlwarenhandelsgesellschaft mbH GmbH [1983] 2 AC 34
11 Henthorn vs. Fraser [1892] 2 Ch 27
12 Defossez, Delphine. "Acceptance sent through email; is the postal rule applicable?." Law, State and
Telecommunications Review 11.1 (2019): 23-46.

5POSTAL RULE OF ACCEPTANCE
lying in the determining factor is what that has led to various controversies and contradictions13.
It has been explained that the instantaneous and the non-instantaneous nature of the e-mails have
been established on the durability of the delivery of receipt of sending upon sending the email to
the offeror.
IMPACT OF LEGAL DECISION MAKING IN THE DEVELOPMENT OF
THE CONCEPTS AND APPLICATION OF THE LAW IN ITS
COMMERCIAL ASPECT:
The legal decision of the court has impacted the decision making aspect with respect to
the communication and its nature of instantaneous and that of non-instantaneous. The Court has
affirmed that applicability of postal rule to the e-mails as the form of communication due to the
non-instantaneous nature of the communication. On the other hand, website contracting has been
recognized as the instantaneous communication in which the acceptance is deemed to have been
complete when the letter or the communication of acceptance is completed towards the offeror.
The essence of e-mail and the postal rule lies in the analysis of e-mails and their nature of
communication. With the growth and development of IT, distance between people may have
been shortened but the communication in the form of e-mails are considered differently from that
of website contracting14. Website contracting is considered as the instantaneous form of
communication on the ground that the sender of the message gets an immediate notification of
the message being sent and received by the other party. However, in case of e-mails, the sender
may get a notification of the mail being sent which is usually notified in few minutes from the
13 Wolkonski, David. The Postal Rule of Acceptance in a Digital World. Does the Postal Rule apply to E-
Mail?. GRIN Verlag, 2017.
14 Kentistou, Maria Christina. "E-Commerce and Postal Market–Challenges and Perspectives for Hellenic
Post SA." (2017).

6POSTAL RULE OF ACCEPTANCE
moment of sending of e-mail. It may also take longer for the system to respond against the
receipt of mail being sent. Thus, owing to the controversy with respect to the time related to the
notification upon the receipt of the mail being sent, the e-mails not treated as the instantaneous
form of communication and hence, it can be explained that the acceptance shall be deemed to
have been communicated from the time it has been sent by the sender as the application of the
general principle of postal rule15.
CONCLUSION:
It can be concluded that the postal rule possibly protects the offeree from offeror’s
arbitrary power to revoke the offer at any time. The general rule of acceptance is that it should be
communicated directly to the party making an offer. However the postal rule is an exception to
the general wherein the parties can enter into the contract without actual communication but
exchange of offer and acceptance by the means of a post or a mail. Thus, it can be explained that
as per the ruling of the court, it has been stated that the offer can be revoked before the offer has
been accepted and the offer can be accepted by the postal rule when the letter of acceptance has
been sent by the sender. The delivery of such letter is irrespective for the determination of the
viability of the enforcement of the contract. It imposes duty upon the offeror to maintain track
and knowledge of the offer and the acceptance forwarded thereafter.
15 Che Hashim, Rosmawani. "Postal rule in acceptance via email." Commonwealth Law Bulletin 44.1
(2018): 111-127.

7POSTAL RULE OF ACCEPTANCE
BIBLIOGRAPHY:
Journals and Scholars:
Butler, Petra, and Bianca Maria Mueller. "Acceptance of an Offer Under the CISG." CISG and
Latin America: Regional and Global Perspectives Eleven International Publishing, the
Hague (2016).
Che Hashim, Rosmawani. "Postal rule in acceptance via email." Commonwealth Law
Bulletin 44.1 (2018): 111-127.
Che Hashim, Rosmawani. "Postal rule in acceptance via email." Commonwealth Law
Bulletin 44.1 (2018): 111-127.
Defossez, Delphine. "Acceptance sent through email; is the postal rule applicable?." Law, State
and Telecommunications Review 11.1 (2019): 23-46.
Goodrich, Peter. "The posthumous life of the postal rule: requiem and revival of Adams v
Lindsell." Feminist Perspectives on Contract Law. Routledge-Cavendish, 2017. 87-102.
Kentistou, Maria Christina. "E-Commerce and Postal Market–Challenges and Perspectives for
Hellenic Post SA." (2017).
Mires, Stanley F. "POSTAL SERVICE." Policy (2016).
Wolkonski, David. The Postal Rule of Acceptance in a Digital World. Does the Postal Rule
apply to E-Mail?. GRIN Verlag, 2017.
Case laws:
Adams vs. Lindsell [1818] B & Ald 681

8POSTAL RULE OF ACCEPTANCE
Brinkibon Ltd vs. Stahag-Stahl and Stahlwarenhandelsgesellschaft mbH GmbH [1983] 2 AC 34
Byrne vs. Van Tienhoven [1880] 5 CPD 344
Entores Ltd vs. Miles Far East Corporation [1955] 2 QB 327
Henthorn vs. Fraser [1892] 2 Ch 27
Re London & Northern Bank [1900] 1 Ch 220
Stevenson, Jacques & Co vs. McLean [1880] 5 QBD 346