The postal rule determines exactly when a contract is accepted when parties communicate by post. Under this rule, acceptance takes effect the moment a letter is posted, not when it is received. If you are entering into contracts or have found yourself potentially taking a dispute to court, you may come across this term. Being familiar with the postal rule can help you prepare for a dispute that may be going to court, as it helps to determine precisely when a contract is accepted. This article will explain the postal rule and advise on how you may enter contracts in the future.<\/p>\n\n\n\n
Contrary to what you may think, entering into a contract is not always so straightforward. It is not just an agreement between two parties; instead, there are specific rules on contract formation<\/a>. <\/p>\n\n\n\n These rules are that there must be a:<\/p>\n\n\n\n An offer and acceptance is an integral part of forming a valid contract. An offer is a suggestion of terms with a serious intent to be legally bound by the offer. Acceptance is communication that the other party to the contract has agreed to the terms. Importantly, you need to exchange both an offer and an acceptance between yourself and the other party to the agreement.<\/p>\n\n\n\n Usually, it is easy to tell when an offer and acceptance exist. For example, imagine that you suggest to another business owner in a face-to-face meeting that you will give her \u00a340 for all of her strawberries. If the other business owner agrees and you exchange the \u00a340 for the strawberries, this is clear communication with an offer and an acceptance.<\/p>\n\n\n\n However, sometimes, you may communicate via letter through the post office. The difference between offer and acceptance may be less apparent in these cases. <\/p>\n\n\n\n\n\n Continue reading this article below the form\n <\/i>\n<\/a>\n\n
What is Offer and Acceptance?<\/h2>\n\n\n\n