postal acceptance rule

postal acceptance rule
an offer is accepted when the acceptance is posted: Entores v . Miles Far Eastern Corporation [1955] 2 QB 327. This means that a binding contract is formed and, accordingly, the person who made the offer cannot sell to another without being liable in damages for breach of contract. The acceptor is bound but may be able to withdraw his acceptance if he can communicate this before the acceptance reaches the person who made the offer. It has been held in England that an acceptance that never actually came out of the other end of the postal system was effective: Household Fire Insurance v. Grant (1879) 4 Ex D. 216. This extreme position has been questioned in Scotland: Mason v . Benhar Coal Co. (1882) 9 R 883. There are some decisions against the rule in the USA: Rhode Island Tool Co. v. United States 130 Ct Ct 698.

Collins dictionary of law. . 2001.

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