The Postal Acceptance Rule Essay -- Business Law

Contractual agreement has always been viewed in terms of offer and acceptance. The universal principle to contract law has always been parties may get into an agreement in whichever way they deem fit and they are subject to certain terms as they choose. As far as legal requirements vital to their formation are binding contracts may be formed. Moreover a binding agreement may be manifested in terms of writing or in verbal form. One of the controversial issues in the law of contract formation has always been the issue of distance contracts. Matters regarding to the types of rules that should be used to govern this type of contracts have always been a topic of debate. One of these rules includes the age old Postal acceptance rule also known as the â€Å"postal rule† or the â€Å"Mailbox rule†. This paper seeks to examine the justification of the postal acceptance rule and its place in the modern world with the emergence of electronic means of communication Background Postal acceptance rule dates back in 1818 when it was established in a court case of (adam v lindsell) In this case the code had to reach a verdict on the moment of contract formation by post. Apparently the courts found out that the parties communicating acceptance through post office were never certain at the exact time the acceptance had been sent. Since postal communication is subject to delay, the involved parties could never be simultaneously aware of the acceptance of the communication, that is, the communication was non instantaneous. As a result this created a series of problems that in turn led to the formation of the postal acceptance rule that still is in so much use today The postal acceptance rule The postal acceptance rule as accepted in the law legal systems... ... Journal (1997): 13. poggi, chrisopher T. "Electronic commerce legislation :An analysis of European and American approaches to contract formation." Virginia journal of international (n.d.). rule", The electronic formation of contracts and the common law: "mailbox. baylor law review. 8 april 2004. scott, Dave. Should the postal acceptance rule be applied t email. 8 april 2012 . T, Poggi and Christopher. "Electronic Commerce Legislation: An analysis of European and American Approaches to Contract Formation." Virginia Journal OF International Law (2000): 224. watnick, valerie. THE ELECTRONIC FORMATION OF CONTRACTS AND THECOMMON LAW "mailbox rule". 6 november 2004. Yamaguchi, mikio. "The problem of delay in the Contract formation Process: A comparative study of contract law' ." cornell international law (2004): 357.