144:
36:
1163:, following the Uniform Commercial Code, states that "unless otherwise unambiguously indicated by the language or circumstances, ... (1) an offer to make a contract shall be construed as inviting acceptance in any manner and by any medium reasonable in the circumstances". Cantu had hand-delivered a letter resigning from an offered contract of employment to the
979:(1880) 5 QBD 346. The implication of this is that it is possible for a letter of acceptance to be posted after a letter of revocation of the offer has been posted but before it is delivered, and acceptance will be complete at the time that the letter of acceptance was posted—the offeror's revocation would be inoperative.
1245:
Ask if the postal acceptance rule applies to emails (electronic communications). If your answer is yes, then the relevant
Electronic Transaction Act (ETA) can help. The postal acceptance rule states that there is a contract when posted – so we should apply the "sent" rule under the ETA. If the answer
1183:
to the McAllen address. Cantu argued that postal acceptance was not valid because her withdrawal letter had been hand-delivered. The trial court and the appeal court accepted the Agency's opinion that it was reasonable, taking account of all the circumstances, for the Agency to accept the resignation
1211:
and
Fullagar J took a more restrictive view. "The general rule is that a contract is not completed until acceptance of an offer is actually communicated to the offeror, and a finding that a contract is completed by the posting of a letter of acceptance cannot be justified unless it is to be inferred
937:
One rationale given for the rule is that the offeror nominates the post office as his or her implied agent, and thus receipt of the acceptance by the post office is regarded as receipt by the offeror. The main effect of the posting rule is that the risk of acceptance being delivered late or lost in
1249:
Instead, treat the
Electronic Transactions Act as an intended substitute and statutory replacement of the postal acceptance rule; in which case the "received" rule should apply. The problem with this second school of thought is that there is nothing in the Model Law of Electronic Commerce, nor the
1240:
Many countries have enacted legislation based on the UNCITRAL Model Law of
Electronic Commerce. Such legislation is often entitled the Electronic Transactions Act. Among other issues, this legislation deals a default rule for the time that email (electronic communications) is sent and when it is
1225:
chooses a compromise between the two approaches: According to article 18(2) of the
Convention, an acceptance is effective when it reaches the offeror. However, article 16(1) of the Convention provides for the most important consequence of the common law "posting rule", that is, an offer may not be
1062:
Under the posting rule, performance is a means of acceptance. If A orders 1000 blue coathangers and B ships them out, that shipment is considered to be a conveyance of acceptance of A's offer to buy the coathangers. Defective performance is also an acceptance, unless accompanied by an explanation.
1139:
Where parties are at distance from one another, and an offer is sent by mail, it is universally held in this country that the reply accepting the offer may be sent through the same medium, and, if it is so sent, the contract will be complete when the acceptance is mailed, ... and beyond the
1063:
For example, if A orders 1000 blue coathangers, and B mistakenly ships 1000 red coathangers, this is still an acceptance of the contract. However, if B ships the red coathangers with a note that they sent these because they had run out of blue coathangers, this is not an acceptance, but rather an
1175:, around 50 miles (80 km) from San Benito. A letter was posted back on the Monday evening, accepting the resignation. On the Tuesday morning, Cantu hand-delivered a letter withdrawing her resignation, but the superintendent of schools advised her that her resignation had already been
1140:
acceptor's control; the theory being that, when one makes an offer through the mail, he authorizes the acceptance to be made through the same medium his agent to receive his acceptance; that the acceptance, when mailed, is then constructively communicated to the offeror.
1220:
Civil law jurisdictions do not follow the postal rule. The classical civil law position is that acceptance, like any expression of will, can only be effective if it was communicated to the addressee, unless the lack of communication can be attributed to the latter.
1094:
as the Court regarded it as an instantaneous form of communication. The general principle that acceptance takes place when communicated applies to instantaneous forms of communication. Courts have similarly held that the posting rule does apply to acceptances by
1258:
Unless otherwise agreed between the originator and the addressee, the dispatch of a data message occurs when it enters an information system outside the control of the originator or of the person who sent the data message on behalf of the
1074:
An interesting implication of the operation of the posting rule is that an acceptance is complete once the letter of acceptance is posted; it makes no difference whether the offeror actually receives the letter. This was demonstrated in
1134:
apply to option contracts or irrevocable offers where acceptance is still effective only upon receipt. This is because the offeree no longer needs protection against subsequently mailed revocations of the offer.
1328:
Maria Diosel Cantu v. Central
Education Agency; Lionel R. Meno, in His Official Capacity Only; and San Benito Consolidated Independent School District--Appeal from 331st District Court of Travis County
1222:
405:
938:
the post is placed upon the offeror. If the offeror is reluctant to accept this risk, he can always expressly require actual receipt as a condition before being legally bound by his offer.
1275:(ii) if the data message is sent to an information system of the addressee that is not the designated information system, at the time when the data message is retrieved by the addressee;
1241:
received. However it is mistaken to suggest that it deals with a clarification of the postal acceptance rule for electronic communications. There are two schools of thought.
1127:
1 Ch 220. A letter of acceptance is not considered "posted" if it is handed to an agent to deliver, such as a courier. This is not the case under the
Uniform Commercial Code.
1123:
960:
410:
973:
The posting rule applies only to acceptance. Other contractual letters (such as one revoking the offer) do not take effect until the letter is delivered, as in
1171:
on a
Saturday, and it was therefore read by its recipient on the Monday morning. The letter stated that outstanding pay should be forwarded to an address in
1110:
should be regarded as an instantaneous form of communication. If the offeree were to convey acceptance by commercially unreasonable means – by cross-country
1235:
678:
1212:
that the offeror contemplated and intended that his offer might be accepted by the doing of that act." The High Court included the element of intention.
783:
3 Historically restricted in common law jurisdictions but generally accepted elsewhere; availability varies between contemporary common law jurisdictions
624:
673:
1195:
applies the mailbox rule to all contracts, California follows the minority rule, under which the mailbox rule does also apply to option contracts.
798:
365:
1280:(b) if the addressee has not designated an information system, receipt occurs when the data message enters an information system of the addressee.
1191:. By default, an option contract is accepted when the offeror receives the acceptance, not when the offeree mails it. However, because the
1159:
for the Third
District of Texas considered the mailbox rule in 1994 in the case of Cantu v Central Education Agency and others. The
612:
1086:
884:
takes place when communicated. Under the posting rule, that acceptance takes effect when a letter is posted (that is, dropped in a
1421:
1262:
Unless otherwise agreed between the originator and the addressee, the time of receipt of a data message is determined as follows:
843:
816:
1053:
B's acceptance of the offer means there is a binding contract – she is obliged to pay for the land or be liable for damages.
1250:
ETAs which suggests that it was intended to replace the postal acceptance rule. We are still waiting for a court to decide.
100:
975:
72:
1269:(a) if the addressee has designated an information system for the purpose of receiving data messages, receipt occurs:
119:
79:
1246:
is no; then either apply the "received" rule under the ETA or ignore it and use the contract rule of communication.
429:
393:
422:
57:
908:, the "meeting of the minds" necessary to contract formation occurs at the exact moment word of acceptance is
86:
53:
1315:
1327:
901:
688:
278:
173:
68:
17:
1084:
Furthermore, the posting rule does not apply to instantaneous forms of communications. For example, in
836:
708:
434:
787:
1353:
683:
642:
554:
1339:
490:
203:
1047:
Day 3: Before A receives B's acceptance, B telephones A and states she wishes to reject the offer.
1156:
812:
663:
472:
322:
46:
933:
to be effective, it must be received by the offeree before they post their letter of acceptance.
1164:
1081:(1880) 5 CPD 344. If a letter of acceptance were to be lost, acceptance has still taken place.
388:
348:
273:
249:
231:
1416:
1297:
1192:
1077:
829:
805:
668:
236:
1292:
1114:, for example – the acceptance would not be effective until it had actually been received.
989:
Day 2: A decides to revoke the offer and puts a letter in the mail to B revoking the offer.
881:
696:
533:
383:
262:
168:
163:
621:(also implied covenant of good faith and fair dealing or duty to negotiate in good faith)
93:
8:
1064:
1050:
Day 4: B's original letter of acceptance arrives, A then records the contract as a sale.
452:
343:
208:
188:
815:, and Canadian jurisprudence in both Québec and the common law provinces pertaining to
738:
701:
543:
515:
481:
374:
359:
353:
327:
1375:
1226:
revoked if the revocation reaches the offeree after it has dispatched an acceptance.
1168:
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305:
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183:
1371:
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618:
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300:
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1272:(i) at the time when the data message enters the designated information system; or
1187:
The majority rule in the United States is that the mailbox rule does not apply to
1188:
1090:
2 QB 327, the Court held that the posting rule did not apply to an acceptance by
1001:
However, a contract was formed on Day 3 when the letter of acceptance was posted.
510:
240:
217:
1172:
897:
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563:
311:
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1410:
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905:
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198:
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The letter of revocation can be effective only when received, that is Day 4.
923:
An offer made by post/letter is not effective until received by the offeree.
290:
1160:
1111:
873:
751:
746:
733:
524:
1117:
A letter is regarded as "posted" only when it is in the possession of the
946:
The rule was established by a series of 19th century cases, starting with
1118:
1056:
B is just rejecting the offer, she did not actually revoke her acceptance
912:
via post by the person accepting it, rather than when that acceptance is
589:
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317:
1031:
In this situation, whichever communication A receives first will govern.
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930:
893:
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193:
1096:
919:
The rules of contracts by post (postal rules) include the following:
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417:
143:
35:
1021:
the offer by putting a letter in the mail to A rejecting the offer.
885:
572:
467:
135:
952:(1818) B & Ald 681, which was later confirmed and expanded in
538:
1107:
1091:
961:
Household Fire and
Carriage Accident Insurance Co Ltd v Grant
1344:, 11 Cal. 3d 494, 113 Cal. Rptr. 705, 521 P.2d 1097 (1974).
888:
or handed to a postal worker); the post office will be the
728:
1341:
Palo Alto Town & Country Village, Inc. v. BBTC Company
1254:
The UNCITRAL rules on time of sending and receiving are:
1100:
1025:
718:
1223:
The Vienna Convention on the International Sale of Goods
1145:
Excerpt of an opinion by Judge Kimmelman (718 A.2d 1223)
808:
both in Québec and in the country's common law provinces
992:
Day 3: B puts a letter accepting the offer in the mail.
27:
A mailed contract is accepted when the letter is posted
1041:
Day 1: A makes an offer to sell a parcel of land to B.
1330:, filed 28 September 1994, accessed 2 February 2021.
1236:
United Nations Commission on International Trade Law
811:
7 Specific to civil law jurisdictions, the American
60:. Unsourced material may be challenged and removed.
1387:See Articles 18 and 16(1) of the Vienna Convention
625:Contract A and Contract B in Canadian contract law
1354:Tallerman & Co Pty Ltd v Nathan's Merchandise
1205:Tallerman & Co Pty Ltd v Nathan's Merchandise
1408:
926:Acceptance is effective as soon as it is posted.
780:2 Specific to civil and mixed law jurisdictions
837:
817:contractual and pre-contractual negotiation
1318:, section 2.206, accessed 2 February 2021.
1215:
1179:, by virtue of an acceptance letter being
872:") is an exception to the general rule of
844:
830:
1004:It is too late for A to revoke the offer.
995:Day 4: B receives A's revocation letter.
864:in the United States, also known as the "
120:Learn how and when to remove this message
1087:Entores Ltd v Miles Far East Corporation
916:by the person who offered the contract.
14:
1409:
1198:
1121:; this was established in the case of
1024:Day 3: B changes his mind and sends a
613:Duty of honest contractual performance
1229:
1106:The courts are yet to decide whether
801:of International Commercial Contracts
1150:
976:Stevenson, Jacques & Co v McLean
58:adding citations to reliable sources
29:
1403:(12 edn Thomson, London 2007) 26-32
941:
790:and other civil codes based on the
24:
1316:Texas Business and Commercial Code
1161:Texas Business and Commercial Code
25:
1433:
615:(or doctrine of abuse of rights)
430:Enforcement of foreign judgments
394:Hague Choice of Court Convention
142:
34:
45:needs additional citations for
1422:Legal doctrines and principles
1381:
1364:
1347:
1333:
1321:
1309:
1044:Day 2: B mails her acceptance.
423:Singapore Mediation Convention
13:
1:
1393:
1370:See e.g. Article 3:37 of the
1124:Re London & Northern Bank
1014:Day 1: A makes an offer to B.
986:Day 1: A makes an offer to B.
797:5 Explicitly rejected by the
564:Quasi-contractual obligations
1401:Treitel: The Law of Contract
902:United States Postal Service
7:
1286:
892:provider, such as the UK's
10:
1438:
1233:
1207:(1957) 98 CLR 93, 111-112
1028:to A accepting the offer.
435:Hague Judgments Convention
870:deposited acceptance rule
786:4 Specific to the German
1303:
1165:Central Education Agency
491:Anticipatory repudiation
241:unequal bargaining power
1216:Civil law jurisdictions
813:Uniform Commercial Code
788:BĂĽrgerliches Gesetzbuch
473:Third-party beneficiary
445:Rights of third parties
323:Accord and satisfaction
1148:
1130:The posting rule does
964:(1879) 4 Ex D 216 and
882:acceptance of an offer
544:Liquidated, stipulated
389:Forum selection clause
274:Frustration of purpose
1374:, Article 130 of the
1298:Transaction documents
1193:California Civil Code
1137:
1078:Byrne v Van Tienhoven
1067:, which is a form of
958:(1848) 1 HL Cas 381,
806:Canadian contract law
174:Abstraction principle
1293:Offer and acceptance
1017:Day 2: B intends to
635:Related areas of law
534:Specific performance
384:Choice of law clause
349:Contract of adhesion
263:Culpa in contrahendo
169:Meeting of the minds
164:Offer and acceptance
54:improve this article
1199:Australian case law
799:UNIDROIT Principles
573:Promissory estoppel
453:Privity of contract
406:New York Convention
366:UNIDROIT Principles
209:Collateral contract
204:Implication-in-fact
189:Invitation to treat
1230:UNCITRAL model law
619:Duty of good faith
516:Fundamental breach
482:Breach of contract
411:UNCITRAL Model Law
375:Dispute resolution
360:Contra proferentem
354:Integration clause
328:Exculpatory clause
1376:German Civil Code
1151:American case law
967:Henthorn v Fraser
890:universal service
854:
853:
697:England and Wales
605:Duties of parties
596:Negotiorum gestio
585:Unjust enrichment
306:Statute of frauds
255:Unconscionability
227:Misrepresentation
184:Mirror image rule
130:
129:
122:
104:
16:(Redirected from
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1388:
1385:
1379:
1372:Dutch Civil Code
1368:
1362:
1356:(1957) 98 CLR 93
1351:
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1337:
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1325:
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1189:option contracts
1157:Court of Appeals
1146:
955:Dunlop v Higgins
949:Adams v Lindsell
942:English case law
846:
839:
832:
674:China (mainland)
643:Conflict of laws
506:Efficient breach
501:Exclusion clause
301:Illusory promise
284:Impracticability
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656:By jurisdiction
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1167:'s office in
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110:November 2011
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71: –
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43:This article
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752:Criminal law
734:Property law
689:Saudi Arabia
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179:Posting rule
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52:Please help
47:verification
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1259:originator.
1119:Post Office
1037:Example 3:
1010:Example 2:
982:Example 1:
866:postal rule
590:Restitution
401:Arbitration
18:Postal rule
1411:Categories
1394:References
1169:San Benito
931:revocation
894:Royal Mail
878:common law
792:pandectist
775:common law
555:Rescission
463:Delegation
458:Assignment
246:Illegality
194:Firm offer
80:newspapers
1184:by mail.
1097:telephone
970:2 Ch 27.
900:, or the
794:tradition
664:Australia
511:Deviation
418:Mediation
151:Formation
1399:E Peel,
1287:See also
1209:Dixon CJ
1177:accepted
1143:—
914:received
886:post box
757:Evidence
729:Tort law
702:Scotland
525:Remedies
468:Novation
291:Hardship
218:Defences
159:Capacity
1173:McAllen
747:estates
679:Ireland
296:Set-off
237:Threats
232:Mistake
94:scholar
1181:posted
1108:e-mail
1019:reject
896:, the
868:" or "
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717:Other
669:Canada
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1304:Notes
1092:telex
904:. In
765:Notes
739:Wills
721:areas
684:India
546:, or
496:Cover
101:JSTOR
87:books
1155:The
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