Postal rule Flashcards
(4 cards)
1
Q
Adams v Lindsell [1818]
established ‘postal rule’
A
- D sent a letter to C offering to sell wool
- C received it 5th and sent letter of acceptance on same day
- letter arrived to D on 9th, but D had sold it on 7th
- C sued for breach -> D argued there was no contract
- Court held that D was in breach
- postal rule established: acceptance by post is notified once the letter of acceptance is posted -> offer has been accepted when letter is posted, not received
- an exception to rule that offeror needs to receive notification of acceptance
postal rule prioritises certainty of offeree over certainty of offeror
2
Q
Holwell Securities v Hughes [1974]
postal rule does not apply when excluded nor ‘its application would produce manifest inconvenience and absurdity’
A
- D granted C option to purchase land
- Clause 2 included ‘option shall be exercisable by notice in writing’
- C sent a letter but it never arrived
- Court held that no contract had arisen -> postal rule excluded by clause 2
3
Q
Byrne v Van Tienhoven [1880]
the offeror cannot revoke their offer after the offeree’s acceptance is posted (unless the postal rule is excluded). The postal acceptance rule does not apply to revocations
A
- D in Cardiff posted letter to C in NY offering to sell tin on 1st
- D sent new revocation letter on 8th
- letter to revoke wasn’t received until 11th -> C telegraphed acceptance on same day
- Court held there was a binding contract
- postal rule doesn’t apply to revocations -> needs to be received
4
Q
Household Fire Insurance v Grant [1879]
unless excluded by the terms of the offer acceptance takes place when the offeree posts their acceptance even if they never receive the postal acceptance or it is delayed
A
- D offered to buy 100 shares from C
- C sent letter of acceptance -> got lost in post and never arrived
- C sued for breach of contract when D refused to complete purchase
- postal rule exception -> it was applicable when it was sent
