ExpertEasy1 markMultiple Choice
ACCA · Question 28 · Corporate and Business Law
Under the postal rule of acceptance in contract law, when does an acceptance sent by post become legally effective?
Under the postal rule of acceptance in contract law, when does an acceptance sent by post become legally effective?
Answer options:
A.
When the letter is written.
B.
As soon as the letter is validly posted.
C.
When the letter arrives at the offeror's address.
D.
When the offeror actually reads the letter.
How to approach this question
Recall the exception to the general rule of communication of acceptance.
Full Answer
B.As soon as the letter is validly posted.✓ Correct
The postal rule (Adams v Lindsell) is an exception to the general rule that acceptance must be communicated. If post is a reasonable method of communication, acceptance is effective the moment a properly addressed and stamped letter is dropped into the postbox.
Common mistakes
Applying the general rule (effective upon receipt) to postal acceptances.
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