The ‘Postal Rule’

As an important aspect of contractual theory, the ‘postal rule’ was an early nineteenth-century common law doctrinal development. Therefore, it served to hols an epistolary acceptance of a contractual offer will be said to become binding when it is put within the course of the postal service, according to Adams v. Lindsell (1818) 1 B & Ald. 681, as the fairest method of allocating the risk, supported by Household Fire Insurance Co. v. Grant (1879) 4 Ex. D 216, and to avoid the revocation of the offer that was made leading to the acceptance until it was received, illustrated by the decision in Re Imperial Land Co of Marseilles (1872) LR 7 Ch App 587.

Consequently, it is to be appreciated that a complete contractual agreement was said to exist when the properly stamped and addressed ‘letter’ is put in the course of postal transmission, supported by Henthorn v. Fraser [1892] 2 Ch 27, and beyond the power of the acceptor so it is immaterial whether it reaches the offeror or not, illustrated by Brogden v. Directors of the Metropolitan Railway Company (1877) 2 App. Las 666. Consequently, the ‘Postal Rule’ is usually considered to be somewhat advantageous for the offeree since they will not be responsible for delay because the burden of uncertainty of waiting is with the offeror.

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