The Case Of Adams V Lindsell ( 1818 ) 1 B & Ald 681 Essay examples

The Case Of Adams V Lindsell ( 1818 ) 1 B & Ald 681 Essay examples

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In the 18th century, the postal rule was established. Through the ruling in the case of Adams v Lindsell (1818) 1 B & Ald 681, the judge held that the acceptance occurred in regards to contracts as soon as the offeree placed the contract in the mail. The creation of this rule is argued to have helped with economic efficiencies and problems of offerors stating they never received the contract to avoid liability. All risk falls on the offeror if the acceptance was lost or delayed. Without the ability to have instant communication, the offeror could start enacting the agreed contract without the delay of seeing the physical contract.

With the growth of technology this rule has now extended to emails. But realizing that emails are different to the post, an amendment was made 13A.

Under the new section, 13A(1) of the Electronic Transactions Act 2002 (ETA), acceptance occurs at the time of the receipt stated in section 11 for that electronic communication, unless the parties or enactment have stated otherwise as stated in 13A(2)(a) and (b).

Section 11 then explains that the electronic communication is taken to be received when the electronic communication enters the information system.
Under the ETA, the electronic communication is deemed ‘sent’ or ‘dispatched’ when the it first enters an information system outside the control of the originator.

This amendment is relevant to our business, Arataki because it clarifies our legal obligation in regards to customers accepting an offer via electronic communications. Additionally, our business deals with international customers so communicating via technology is our main source of communication. Having this amendment means that we were required to state in our contracts, when acceptan...


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...or it is reasonable to believe that the offeree would try to contact the offeror fro confirmation, as said above they are receiving a benefit from the contract.

The law of contract provides a high degree of certainty. This degree of certainty is essential for businesses committing their resources to transactions: for business to prosper parties must have confidence that the contracts they enter into will be binding. Any changes made should persevce the principle of law of contract and enhance the certainity to avoid risk to businesses. (The Law of Contract). This above statement just reiterates the need for clarification in the amendment. How can a business be certain that the acceptance has occurred if it is stated occurring when entering an information system. What information system? who controls this system? And how can business rely on this unknown third party?

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