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Date: Fri, 20 Oct 2006 08:15:37 +1000

From: Peter Radan

Subject: Postal Acceptance Rule

 

Jason,

I'm not aware of authority on the point. Subject to any that does exist, I would have thought the postal acceptance rule is just that, a rule about acceptances. It is an exception to the requirement of communication of acceptances. Although the rationale for the postal acceptance rule is not altogether clear, it seems to me that the best explanation for it is that it represents a policy decision as to where the risk lies in cases where the post is used as a means of accepting an offer. Given that the offeror has it within his/her power to exclude the operation of the postal acceptance rule, it is perhaps understandable that he/she is the one lumbered with the risk. If the postal acceptance rule is about allocation of risk, I don't see the need for a 'postal rejection rule' on the basis that the issues of risk in relation to rejection do not arise.

In practical terms your question raises the issue of whether an offeree can, having posted a rejection, can change his/her mind, and accept by some speedier means of communication, ie before the rejection letter arrives. I don't see a problem with that. From an offeror's perspective, a 'postal rejection rule' would bring about an earlier termination of the offer and this could conceivably be in his/her interest in some circumstances. However, the duration of the offer is in any event within the control of the offeror who can withdraw it is he/she wishes to do so.

 

Peter

Associate Professor Peter Radan
Head, Department of Law
Macquarie University NSW 2109
Australia

Tel: +61 (0)2 9850-7091

 


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