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How can businesses that make offers protect themselves from the risk of loss associated with the...

How can businesses that make offers protect themselves from the risk of loss associated with the rules of offer and acceptance by post?

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Expert Solution

EXPLANATION : The above statement is related to the CONTRACT LAW and comes under POSTAL RULE OF ACCEPTANCE.

It states that acceptance of the offer takes place when the letter is posted to the recepient party. It is basically an exception to the normal rule of acceptance as per CONTRACT LAW.

Now businesses use this rule of offer and acceptance by post because it develops power by binding both parties and then acceptance can be exercised for that power. It also helps businesses in determining the time when both are reaching the consensus to the offer and acceptance and there is more possibilty of meeting of minds occuring then at a latter time as when the letter was actually delivered.

It can be said that it is good for offeree as it provides business convienience and also fair allocation of risk because it reduces the risk for circular communication and provides a fixed date for contract. Any delay in posting the letter can be a potential risk for both parties to the contract as the time period of delivery of letter is uncertain due to various circumstances so in that case a proper justification might be considered.

ekkarill92 answered 1 year ago
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