Postal Rule Case Study

1545 Words 7 Pages
Offer is defined by Treitel as an expression of willingness to enter into a contract with intention to create legal relation that it shall become binding obligation without any further negotiation, Offer can be in different form such as letter, email, newspaper advertisement, fax and conduct only if offeror is prepared to have a contract. Offer has 3 elements, 1: intention/willingness, 2: specified terms (method of payment) and 3: no further negotiation.
There are two types advertisement, 1: bilateral advertisement where both parties start performance after the formation of the contract, bilateral ads are usually invitation to treat such as sale of goods (adverts in newspaper are bilateral). In the case of Mr. Ishtiaq vs heaven furniture
…show more content…
The concept of postal rule came from the case of Adam vs Lindsell once the acceptance letter is posted it will prevail and there will be no withdrawal from it. Postal rules only apply to acceptance; other contractual letter can be active once they are delivered Stevenson, Jacques & Co v McLean (1880) . In the case of Byrne v Van Tienhoven (1880) if a letter of acceptance were to be lost, acceptance has still taken place. An exception to this would be if the offeree knows or has reason to know that the letter of acceptance never reached the …show more content…
It is a question of fact not law. Perishable goods have less time for acceptance. If the offeree provides consideration to keep the time open then the offeror cannot withdraw his offer until the time expires, example, if the money has been given by the offeree to keep the offer open for 7 days, case of Routledge vs Grant 1828 and Mountford vs Scott 1975 , sometimes consideration of 1pound wouldn’t be enough to increase the time limit of a house which is worth 100thousand pounds according to the courts judgment in Mountford vs Scott 1975

Related Documents