Postal Rule

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Should the Postal Acceptance Rule extend to Modern Types of Communications such as E-mail?
Joy B. Ganado

I. INTRODUCTION Today, changes in the way commerce is undertaken relies very much on technology. From Internet sites advertising etc., to making agreements via email, technology forms the development of modern business operations. The stage at which technology advances is very challenging on today’s law and introduces much difficulty in the construction of an adequate framework for e-commerce. Although the postal rule is constituted within the legal system, the range of its pertinence nowadays to communication is a matter, which are inconclusively ascertained by the courts. From the
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Some suggest that such consequences make the postal rule unfair and that it should be the responsibility of the offeree to ensure that the letter reaches its destination. However, the offeror controls the terms of the offer so he can stipulate that the acceptance must be communicated in a particular manner. If he does not do so, it could be argued that he only has himself to blame. The most renowned formulation of the rule is that propounded by Lord Hershell in Henthorn v Fraser, where the lordship stated that: Where the circumstances are such that it must have been within the contemplation of the parties that, according to the ordinary usages of mankind, the post might be used as a means of communicating the acceptance of an offer, thee acceptance is complete as soon as it was posted.

The consequences, which flow from the application of the rule, are of particular importance in situations where either the time or place of formation of a contract is at issue. Indeed, the courts have been concerned with locating the place of formation of a contract in the majority of cases, which have considered the applicability of the postal acceptance rule to modern forms of communication.

II.b Exception to the Postal Acceptance Rule

Exclusion to the postal acceptance rule or displacement is that

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