Postal Rule vs. Receipt Rule

Attribute	Postal Rule	Receipt Rule
Communication	Acceptance is communicated when the letter is posted	Acceptance is communicated when the letter is received
Revocation	Revocation is only effective upon receipt	Revocation is effective upon posting
Application	Applies to acceptance of offers	Applies to revocation of offers

Introduction

When it comes to contract law, there are various rules and principles that govern the formation and acceptance of contracts. Two important rules that are often discussed in this context are the Postal Rule and the Receipt Rule. These rules determine when and how acceptance of an offer is considered valid. In this article, we will compare the attributes of the Postal Rule and the Receipt Rule to understand their differences and similarities.

Postal Rule

The Postal Rule, also known as the Mailbox Rule, is a common law principle that governs the acceptance of an offer sent through the mail. According to this rule, acceptance is considered valid as soon as the offeree puts the acceptance letter in the mailbox, even if it has not been received by the offeror. This means that the acceptance is effective at the moment it is posted, not when it is received by the offeror. The rationale behind the Postal Rule is to provide certainty and fairness in contract law by preventing offerors from revoking their offers once the offeree has already accepted them.

One of the key attributes of the Postal Rule is that it only applies to acceptance sent through the mail. If the offeror specifies a different method of acceptance, such as email or fax, then the Postal Rule does not apply. Additionally, the Postal Rule only applies to acceptance, not to the formation of the contract itself. This means that the contract is formed when the acceptance is posted, not when it is received.

Another important aspect of the Postal Rule is that it can lead to potential delays and misunderstandings in contract formation. Since acceptance is considered valid as soon as it is posted, the offeror may not be aware of the acceptance until some time later. This can create uncertainty and complications in contract negotiations, especially if there are time-sensitive issues involved.

In summary, the Postal Rule is a well-established principle in contract law that governs the acceptance of offers sent through the mail. It provides certainty and fairness in contract formation by determining when acceptance is considered valid, even if it has not been received by the offeror.

Receipt Rule

The Receipt Rule, also known as the "mailbox rule," is a principle of contract law that governs the timing of acceptance of an offer. According to this rule, acceptance is only valid when it is received by the offeror. Unlike the Postal Rule, which considers acceptance valid as soon as it is posted, the Receipt Rule requires actual receipt of the acceptance by the offeror for it to be considered effective.

One of the key attributes of the Receipt Rule is that it applies to all forms of acceptance, not just those sent through the mail. Whether acceptance is sent via mail, email, fax, or any other method, it is only considered valid when it is received by the offeror. This provides more certainty and control to the offeror, as they are aware of when acceptance has been communicated to them.

Another important aspect of the Receipt Rule is that it can prevent misunderstandings and disputes in contract formation. Since acceptance is only valid upon receipt, the offeror is aware of when the contract is formed and can take appropriate action accordingly. This can help avoid delays and complications in contract negotiations, as both parties are clear on when acceptance has been communicated.

In summary, the Receipt Rule is a fundamental principle in contract law that governs the timing of acceptance of an offer. It requires actual receipt of the acceptance by the offeror for it to be considered valid, providing more certainty and control in contract formation.

Comparison

When comparing the Postal Rule and the Receipt Rule, it is clear that they have distinct differences in how they govern the acceptance of offers. The Postal Rule focuses on when acceptance is considered valid, while the Receipt Rule emphasizes the actual receipt of acceptance by the offeror. These differences can have significant implications for contract formation and negotiations.

• One key difference between the Postal Rule and the Receipt Rule is the timing of acceptance. The Postal Rule considers acceptance valid as soon as it is posted, while the Receipt Rule requires actual receipt of acceptance by the offeror. This means that under the Postal Rule, acceptance can be effective even if the offeror is not aware of it, leading to potential delays and misunderstandings.
• Another difference between the two rules is the method of acceptance to which they apply. The Postal Rule only applies to acceptance sent through the mail, while the Receipt Rule applies to all forms of acceptance. This distinction can impact how contracts are formed and how communication between parties is conducted.
• Furthermore, the Postal Rule and the Receipt Rule have different implications for certainty and fairness in contract law. The Postal Rule aims to provide certainty by determining when acceptance is considered valid, even if it has not been received by the offeror. On the other hand, the Receipt Rule focuses on ensuring that acceptance is only valid when it is received by the offeror, providing more control and clarity in contract formation.

In conclusion, the Postal Rule and the Receipt Rule are important principles in contract law that govern the acceptance of offers. While they have distinct differences in how they determine the validity of acceptance, both rules play a crucial role in providing certainty and fairness in contract formation.