That is, for a contract to exist there should be an offer made by the offeror and this should be accepted by the offeree and this amounts to an acceptance. This acceptance must be communicated to the offeror and a contract might be concluded when the offeree receives the acceptance. Once again, it should be noted that these transactions are conducted through an electronic portal and are facilitated through the use of emails. This is called the receipt rule and is the general rule.
Because of the different and new nature of e-commerce, the described rule above is not applicable to traditional contracts created and facilitated through the post. Traditionally, for these types of contracts the postal rule applies. As opposed to the general law practice in the e-commerce world, the postal rule provides that an acceptance is active and a contract is concluded from the moment the offeree drops the acceptance in the letter box. This is applied even if the acceptance letter is delayed or failed to reach the other party. The postal rule is held to apply only to acceptances in the case of Adams v Lindsell (book).
Even if some rules are already practiced in the e-commerce, there are still disputes which tackle the applicability of the receipt ...Show more