The Postal Acceptance Rule

-the reasoning: the letter agreement left the point of delivery up to future negotiation and was not specific to all essential terms. The letter was unenforceable agreement to agree and there was no contract.

The principle of law is that for a valid contract to be formed there must be an agreement reached by both parties.

However, the following are the vital steps contained in each contract. Also, without them the contract would not be considered valid. First, an offer entails a statement by one party who is willing to make a contract under certain conditions keeping in mind that it shall be accepted. Second, acceptance gives a picture of the agreement to the terms offered. According to Rogers (2012), acceptance is considered valid when, (1) it is made by an individual to whom the offer was directed, (2) it is unequivocal, and (3) it is communicated to the offeror. Third, consideration encompasses the terms of the contracts between the parties. Therefore,

P2 EXPLAIN THE LAW IN RELATION TO THE FORMATION OF A CONTRACT IN A GIVEN SITUATION

A contract comes into existence with the initiation of an offer made by one party, which in turn should be ‘accepted’ by the other party. The element of offer and acceptance thus initiate the legal process of the formation of a valid and binding contract. The significance of acceptance with respect to the contract laws stems from the fact that the proposed offer must be accepted by the promisee and forthwith be communicated to the promisor. Together offer and acceptance create a promise which can

As per 14 (1), Electronic Transactions Act 1999 (Cth), which are powerful in the recipient 's server clarifies that in the wake of having sent through email affirmation. Thus, once it was clear that the offeror does not check email, offeror "s dynamic server clarifies that an understanding came to.

In the Common Law system, “the Mailbox Rule is an alternate term for the Postal Rule; when mailed, an acceptance of an offer to contract is valid from the moment it is deposited into a mailbox; on dispatch.” The Mailbox rule is an exception to the general rule that a contract is created when acceptance is directly communicated to the offeror. The mailbox rule provides that the contract is formed when the letter of acceptance is placed in the mailbox. This rule was established by the case of Adams v. Lindsell (1818) B& Ald 68. In this case, Judge Law said that if that were

Accordingly, the Legal Department sets out below a general background and practice of Postal Acceptance Rule (PAR) and its application to the business world at present in Australia. We enclose with the modification of PAR in response to ongoing changes in transaction acts and technology nowadays. Regarding Conditional Acceptance, the case of Master v Cameron will be utilized as an example and set as background for recommendations for our business.

Although Amy did not accept the offer from Dr Hu to purchase her medical equipment in the prescribed form of post, her acceptance is still valid. It was suggested that ‘where the offeror has prescribed a particular method of acceptance, but not in terms insisting that only acceptance in that mode shall be binding, that acceptance communicated to the offeror by any other mode which is no less advantageous to him will conclude the contract’ . Therefore suggesting that even though Amy did not respond via post as was asked by Dr Hu, the wording in Dr Hu’s email said that ‘you can respond’, can meaning that it was not specified as the only means of accepting the offer, and that other means of acceptance would be seen to form a binding agreement between the two parties. As Amy’s email was in no way less advantageous to Dr Hu it can be seen as a valid acceptance of the offer that was put to Amy. Amy sent her email of acceptance to the email that she received the email from, which conforms with Section 13A(a) of the Electronic Transactions Act 2000 (NSW) which states ‘the time of receipt of the electronic communication is the time when the electronic communication becomes capable of being retrieved by the addressee at an electronic address designated by the addressee’

One characteristic of the mail box rule is indicating what form(s) of acceptance will be accepted. For example, a telephone call will be used as a form of acceptance.

Contracts can be defined through promises between parties that are enforceable through law. We know that both parties agreed verbally, an oral agreement was made to hold the car for one day with a hundred-dollar deposit and Stan agreed to the terms that the deposit was refundable. Contracts can be in in two form which are written or oral. Based on the elements of contracts, many fundamentals factors are considered mandatory to form a contract that is binding on parties and are primarily outlined through the following:

The United States Postal Service (USPS) is a multifaceted firm. Its main goal is to create a web of communication between households, businesses and other organizations’ in the United States. This kind of service provides the foundation on which USPS sets its top priorities; customer value. Despite the fact that in today’s society, many people communicate through e-mail, telephone or social media, there are still quite a few people who don’t have access to these services or simply prefer the old way of communicating; with paper and pen. Therefore, USPS prides itself to always have specialized services for everyone, individuals that rely on the classic services of the postal service and individuals who enjoy keeping up with technology.

In BROGDEN v METROPOLITAN RAIL CO it was held the railway company had accepted by placing orders since the amendment of the document, and in TRENTHAM LTD v ARCHITAL LUXFER the court used the 'reasonable man' to identify whether or not there has been acceptance. Both cases seemed to have reasonable outcomes; therefore the courts had been provided with satisfactory rules to help them reach a appropriate verdict. There are various different rules regarding acceptance. There must be a communication of acceptance from the offeree to the offeror. The case of YATES BUILDING v PULLEYN deals whether there had been a prescribed acceptance or not. It was held that there was no practical difference to the offeror therefore the acceptance method was binding. However in the case of ENTORES LTD v MILES FAR EAST CORPORATION there was no prescribed acceptance, yet it was held that the contract was formed in England as that was there acceptance had been received by telex. Other rules that can be used to decide whether there has been acceptance include a waiver of communication of acceptance; silence, which isn't a valid acceptance; ignorance, generally there isn't a binding contract; and acceptance via post using the postal rule. The postal rule can often be misused, as it states that a contract has been formed as

The postal rule better understood when described using a functional example. For instance an offeror sends an offer to a second party known as the offeree via post office. According to the rule of engagement the offeror can decide to revoke or cancel the offer any time before acceptance. This in turn gives the initiator of the deal an upper hand on the bargaining table. This means that the offeree is at a greater loss since once he /she receives the offere he does not know whether the offer still stands or the offeror had already revoked it. Moreover he/she doesn’t know when he is contractually bond since he cannot establish the exact time of receipt of his acceptance.

ANSWERS TO QUESTION 1 OF CONTRACTS EXAM Exam 5003 – AThe letter sent by B was an offer. An offer may be defined as a communication, having sufficient definiteness to eliminate the need for further negotiation, and creating the impression of manifest intent to enter into a K. An offer may be made to the general public, as in a mass mailing or advertisement, or to an individual. The letter was sufficiently definite. It provided the description of the product, a price, and a quantity. The quantity, while not particular, first created the impression of a great many pieces available. Second, it operated as an offer for a requirement K by UCC 2306. Such a requirement K need not be explicit in the quantity; it is