Easy1 markMultiple Choice
The law of obligationsSection ASyllabus BCorporate and Business Law

ACCA · Question 28 · The law of obligations

Under the postal rule in contract law, when is an acceptance sent by post generally considered to be legally effective?

Answer options:

A.

When the letter is written.

B.

At the moment the letter is properly posted.

C.

When the letter is delivered to 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 acceptance. The postal rule (Adams v Lindsell) makes acceptance effective upon posting.

Full Answer

B.At the moment the letter is properly posted.✓ Correct
The postal rule is an exception to the general rule that acceptance must be communicated. If the post is a reasonable method of communication, acceptance is effective the moment a properly addressed and stamped letter is placed into the control of the postal service.

Common mistakes

Assuming the offeror must receive or read the letter. The risk of delay or loss in the post falls on the offeror.

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