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The Postal System As A Method Of Communication

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There are three separate theories available which can be identified that could be used to confirm that an enforceable agreement has been reached between parties using the postal system as a method of communication. These are, the information theory, whereby the offeror notifies the offeree that the letter of acceptance has been received. The receipt theory, which assumes a contract has been created on the receipt of a letter of acceptance and the dispatch theory, known also as 'the postal rule ' which confirms that a contract has been entered into at the point in time that the letter of acceptance is posted. Clearly, it is essential that when contracts are created using the postal system as a means of communication it must possible to determine at what point the agreement becomes legally enforceable. When using the postal system there is an inevitable risk that communications could be lost or delayed which, but for the postal rule would create uncertainty for the party who is providing acceptance of the offer. Therefore, unless the offeror had prescribed a specific or alternative method of communication it is the dispatch theory that is applied in English contract law regarding the acceptance of agreements that are made using the postal system, this confirms certainty in the mind of the offeree. This rule became established in English contract law as the result of the decision made in Adams v Lindsell (1818) 106 ER 250. This was subsequently confirmed in The

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