Discuss Whether the Postal Rule Should Continue to Be Applied, and the Scope of Communications Methods(If Any) That Should Be Covered by the Rule

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| | |BML1105 – Business Law | |ASSESSMENT : RESEARCH ESSAY | | | |Discuss whether the postal rule should continue to be applied, and the | |scope of communications methods(if any) that should be covered by the rule | | | |Alfred | |22 May, 2012 | |…show more content…
Later the company went bankrupt, Grant is asking for the outstanding payments. In this case, Grant is offeror, Household Fire and Carriage Accident Insurance Company Ltd is offeree and the offer is buy the shares. By the Postal Acceptance Rule, the acceptance is valid when the letter of acceptance is posted no matter that the offeror is received it or not. Now the offer is accepted by offeree and offeree posted the acceptance to offeror. Hence Grant is legally bound to pay the outstanding payments. Further to case Dunlop v Higgins[3], is in same situation, Dunlop send to offer to Higgins. In the communication delay time, Dunlop’s good prices have increased. Higgins has posted the letter of acceptance when he received the offer from Dunlop. Dunlop’s won’t to supply the goods to Higgins with old prices. By Postal Acceptance Rule, hence Dunlop must comply with their offer supply the goods to Higgins with old prices. 3.2 Exclusion case of the Postal Acceptance Rule The Postal Acceptance Rule does not apply in every case. Even if the negotiating parties involved consider the postal service is an acceptable means of communication. According to Byrne v. Van Tienhoven[4], the Postal Acceptance Rule cannot accept offeror revocation their posted acceptance. In this case, Van Tienhoven had been sent out the acceptance to Byrne. But Van Tienhoven withdrawal offer and sent out the new one to Byrne before Byrne received the old offer. The

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