Forum Replies Created
- AuthorPosts
- March 12, 2011 at 9:49 pm #79788
I get the principal of the Postal rule now and understand it applies to acceptance and not the offer or termination of an offer.
As in the case of “Household Fire Insurance co & Grant”
Acceptance is valid at the point when acceptance is mailed, provided all the Postal rule criteria are met.
Criteria:
1. Acceptance must be in writing in a letter or memo, be in an envelope which has been correctly stamped (Correct postage has been Paid)
2. It must be Mailed using the accepted means of mailing a letter/ Envelope, i.e. Letter box, registered letter etc.
3. Both parties must Offeror & Acceptor must agree this to appropriate means of communicating acceptance. So if it is a face to face offer in a shop it is most probably not reasonable to accept via post, it could however be reasonable if circumstances are reasonable.So in the Case Ramsgate Victoria Hotel & Montefiori it was held that the offer was terminated due to a laps of time (5 months were it it accepted 3 months to be accepted period for the sale of shares)
If however the Hotels liquidator could prove the acceptance was mailed. Would the acceptance & Contract be Valid? - AuthorPosts