The Valid Contract

2101 WordsOct 5, 20089 Pages
A valid contract consists of all essential components which present and the court will enforce as a legally binding promise . One of the elements contract to create a contract is agreement which included an offer and acceptance. “Acceptance is a final and unqualified assent to the terms of the offer, made in the manner specified or indicated by the offeror” . Acceptance may be express orally, in writing, occasionally, or even by implied from the offeree’s conduct. In communication of acceptance, general rule claimed that acceptance ordinarily occurs at the time when, and the place where the offeror receives the acceptance .As a general rule, “what must be accepted is what was offered” , it exclusive of addition, deletion, or qualification.…show more content…
Certainly, Grant refused liquidator’s payment and arguing that this offer to purchase the shares had never been accepted. Nevertheless, the court held that “postal rule applied because it had been within the contemplation of the parties that the acceptance would be by mail. Accordingly the company’s acceptance of his offer to take up shares ( the allotment) was complete upon posting and Grant was a shareholder from that point. As a result he was liable to the liquidator for the uncalled amount. Therefore, non-delivery of acceptance was immaterial” .Moreover, if the acceptor address the letter incorrectly, if the address is incomplete or if the letter is incorrectly stamped, the postal rule will probably not apply . Other courts have justified the rule by saying when the offeror uses the mail to communicate his offer he makes the post office his agent with authority to receive his acceptance , in effect, he authorizes the offeree to accept the offer by mail. However, the post office is in fact neither an agent nor a servant of the sender because it is not subject to his control. The post office is independent contractor and has merely undertaken to deliver the message The postal rule specifically applies to acceptance by mail and by telegram. However, the effort has been made to extend the operation of the rule other mean of communication (such as telex, telephone, e-mail, etc), but these have not been successful. The
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