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Postal rule

Forums › Ask CIMA Tutor Forums › Ask CIMA BA4 Tutor Forums › Postal rule

  • This topic has 1 reply, 2 voices, and was last updated 5 years ago by Ken Garrett.
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  • September 22, 2019 at 9:11 pm #547103
    orekons
    Participant
    • Topics: 1
    • Replies: 0
    • ☆

    Probably this would be a totally legal question but I was wondering if there might be some further insights about the following hypothetical extreme scenario.

    Under the postal rule the acceptance of an offer is valid based on the stamped date.
    However an offeror can also revoke his offer before acceptance by the offeree.
    What would possibly happen if at the same date the offeree mails his acceptance while the offeror mails his revocation of the offer and no further info is available such as exact time and such.

    September 23, 2019 at 8:37 am #547115
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10587
    • ☆☆☆☆☆

    As you say, under the postal rule, the letter of acceptance is relevant on posting. Letters communicating revocation come into effect only when the letter revoking the offer is delivered. The key case dealing with revocation under the postal rule is Byrne v Van Tienhoven (1880). The judges ruled that the plaintiff had accepted the original offer by posting a response to the defendant. The letter of revocation was received after their letter of acceptance had been posted by the plaintiff. The contract therefore was complete.

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