The Postal Acceptance Rule

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Postal Acceptance Rule (Mailbox Rule): The Postal Acceptance Rule or Mailbox Rule is a common law term for contracts that determines the formation of a contract in which the involved parties are communicating through the mail. The primary thrust or core of the mailbox rule is that the acceptance of an offer is sent before the revocation of the specific offer is received. In a scenario where the communication is sent rejecting the offer while a later communication is also sent in acceptance of the contract, then the first communication to be received by the offeror will succeed ("Mailbox Rule", n.d.). Since this rule originated several years or decades ago, many people say that it should no longer be applied today because the reliability of the postal system is declining and the increased use of electronic means to send letters. Understanding the Postal Acceptance Rule: As a doctrine in contract law, the postal acceptance rule states that if mail is a rational means of delivery for an acceptance, the acceptance becomes applicable on the date its postmarked and dropped in the mailbox ("What is the Mailbox Rule?" n.d.). Therefore, the rule is applicable for payments in insurance premiums where it's considered as a way of accepting the contract with its postmarked date being the acceptance date. Since its inception and establishment in the early 1800s, the postal acceptance rule is a common characteristic of legal standards in various nations like Australia. Notably, the
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