ABSTRACT

One of the key issues in contract law is determining whether an offer has been accepted or not. Traditionally, where the parties have agreed acceptance of an offer can be concluded via post, the contract is deemed to be accepted at the point the letter is properly addressed, stamped and posted. Known as ‘the postal rule’, this applies even if the letter fails to arrive and goes astray. In recent years, the courts have had to grapple with the issue of ‘instantaneous’ communication such as email. As will be seen below, the courts have developed various principles to determine when such offers can be accepted via email, and when they cannot. In such cases, to avoid confusion, businesses should communicate the exact method of acceptance to be used and provide timescales for responses. This avoids disputes arising in connection with the postal rule.