The Postal Acceptance Rule

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The Postal Acceptance Rule 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…show more content…
This was mainly because via the mail parties could not know simultaneously whether they had reached an agreement. As a result a general rule indicating the time of an acceptance had to be established. Consequently the postal acceptance rule was developed .The postal rule function to create an exception to the general rule, which stipulates that an acceptance will only be effective upon receipt 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 offeree 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. To clear this imbalance the postal rule was develop in order to make the process of contract formation more reasonable for the offeree. When the rule is applied the offerees acceptance is catered for as easily as the letter is mailed, that is the acceptance was effective as soon as it was dispatched The Rationale behind the Postal rule The main
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