levo

Formation of a Contract

The Postal Rule and Termination of Offers

  • 3 things to know
  • Paper 3

Overview

Recall questions on when the postal rule forms a contract and when it does not apply, acceptance by telephone or email, offers with no time limit, and the effect of death on an offer.

What you need to know

Answer each one before you reveal it.

Your recallNot started
Key term

Under the postal rule, at what moment is a contract formed?

Key term

When is acceptance effective for instantaneous methods of communication such as telephone or email?

Key term

What is the general effect of the death of the offeror or offeree on an offer?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    Under the postal rule, at what moment is a contract formed?

    Model answer

    At the moment the letter of acceptance is posted.

  2. 2

    When does the postal rule apply?

    Model answer

    The postal rule only applies where it is reasonable to use the post as a method of communication.

  3. 3

    Would the postal rule apply if the offeror specified that acceptance must be by email?

    Model answer

    No, because it would not be reasonable to use the post when another method has been specified.

  4. 4

    When is acceptance effective for instantaneous methods of communication such as telephone or email?

    Model answer

    Acceptance is effective when received by the offeror.

  5. 5

    Why does the postal rule not apply to telephone communications?

    Model answer

    Because telephone is an instantaneous method of communication, so acceptance is effective when received, not when sent.

  6. 6

    What happens to an offer if no time limit for acceptance has been specified?

    Model answer

    The offer lapses after a reasonable time.

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