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Postal Rule

The document discusses the postal rule or mailbox rule which determines when a contract is formed when mail is used as the medium of acceptance. It states that under the postal rule, a contract is formed when a properly addressed and prepaid letter of acceptance is posted, placing the risk of late or lost delivery on the offeror.

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Bob Johnson
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376 views

Postal Rule

The document discusses the postal rule or mailbox rule which determines when a contract is formed when mail is used as the medium of acceptance. It states that under the postal rule, a contract is formed when a properly addressed and prepaid letter of acceptance is posted, placing the risk of late or lost delivery on the offeror.

Uploaded by

Bob Johnson
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Be It Known: The green return receipt returned to me evidences a Common Law-contract between us

under the Postal rule, which states:


“The postal rule (also known as the mailbox rule or "deposited acceptance rule") is a term of
common law-contracts which determines the timing of acceptance of an offer when mail is
contemplated as the medium of acceptance. The general principle is that a contract is formed
when acceptance is communicated to the offeror. The mailbox rule is an exception to the
general principle. The mailbox rule provides that the contract is formed when a properly
prepaid and properly addressed letter of acceptance is posted. One rationale given for the rule
is that the offeror nominates the post office as implied agent and thus receipt of the
acceptance by the post office is regarded as that of the offeree. The main effect of the mailbox
rule is that the risk of acceptance being delivered late or lost in the post is placed upon the
offeror. If the offeror is reluctant to accept this risk, he can always require actual receipt before
being legally bound.”

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