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. Generally speaking, there are no requirements as to the form of contracts and most commercial contracts certainly do not have to be in writing. The simplest definition of a contract is a ‘legally binding agreement’. It must be understood, however, that although all contracts result from agreements, not all agreements are contracts. From a business point of view, it is probably advisable to avoid the possible application of the postal rule, by indicating clearly when and how a contract will be deemed to be concluded. The foregoing has presented the legal principles of offer and acceptance in line with the ‘classical model’ of contract.
