The postal rule is a legal principle that determines when a contract is considered to have been formed, even if the acceptance of the offer is communicated through the mail. The postal rule is also known as the "mailbox rule" or the "posted acceptance rule."
The postal rule was first established in the case of Adams v. Lindsell (1818) in England. In this case, the plaintiff, Mr. Adams, offered to sell wool to the defendant, Mr. Lindsell, through the mail. Mr. Lindsell did not respond to the offer, but later claimed that he had never received the letter. Mr. Adams argued that the contract was binding because he had sent the letter through the mail, and Mr. Lindsell had not rejected the offer within a reasonable time.
The court ruled in favor of Mr. Adams, stating that a contract is formed as soon as the acceptance of the offer is posted. This means that, even if the acceptance is not received by the offeror, the contract is considered to be formed when the acceptance is sent through the mail. The postal rule was established to ensure the efficiency and certainty of contract formation, as it can be difficult to determine the exact moment when an acceptance is received.
The postal rule has been applied in many countries, although it is not universally accepted. In some jurisdictions, the postal rule is modified or not recognized at all. For example, in the United States, the postal rule is not recognized in all states. Instead, the acceptance of an offer is considered effective when it is received by the offeror.
There are several exceptions to the postal rule, including situations where the offer specifies that acceptance must be communicated in a certain way (such as in person or by telegram) or where the offer is made subject to certain conditions (such as the offer being accepted within a certain time frame). In these cases, the acceptance must be communicated in the specified way or within the specified time frame for the contract to be considered binding.
Overall, the postal rule is a legal principle that determines when a contract is formed through the mail. It is an important principle in contract law, as it helps to ensure the efficiency and certainty of contract formation. However, the postal rule is not universally recognized, and there are exceptions to its application.