Postal Contract and Law Essay Example | Topics and Well Written Essays - 2000 words

Postal Contract and Law - Essay Example P. 71). According to Lord Denning, there is vast difference between the rule of instantaneous communication and the postal rule. The offeror must receive acceptance of his offer for the contract to be complete. In instantaneous mode of communication of acceptance, the place of formation of the contract is the place at which the acceptance is received by the offeror (Davies, 2005. P. 158). In the present day corporate world, communication is chiefly by means of teleprinter, facsimile or electronic mail. Electronic communication is still surrounded by controversy with regard to its legality. The advanced technology utilised in such communication modes enables easy transmission of communications. Thus, electronic communication can be sent at any time to a destination, even after working hours. This raises the question about the point of time when the electronic communication had been legally effectual. The postal rule does not apply to instantaneous forms of communication (Brinkibon Ltd v Stahag Stahl und Stahlwarenhandels GmbH). This was the ruling in Entores Ltd v Miles Far East Corp (Entores Ltd v Miles Far East Corp). Electronic mail is transmitted much faster than the mail sent by post. However, electronic mail cannot be deemed to be instantaneous communication between the parties. The reason for this is that the sending and receipt of electronic mail may take anything between a few hours to several days. Hence, it does not constitute instantaneous communication. Consequently, the postal rule applies to electronic mail. An offer is deemed to be properly communicated in instantaneous communication, if the addressee has notice of the offer. In non – instantaneous modes of communication, the offer is communicated through letters, telegrams or other methods. Such communication has to be dispatched to the addressee and received by the