The Valid Contract

A valid contract consists of all essential components which present and the court will enforce as a legally binding promise . One of the elements contract to create a contract is agreement which included an offer and acceptance. “Acceptance is a final and unqualified assent to the terms of the offer, made in the manner specified or indicated by the offeror” . Acceptance may be express orally, in writing, occasionally, or even by implied from the offeree’s conduct. In communication of acceptance, general rule claimed that acceptance ordinarily occurs at the time when, and the place where the offeror receives the acceptance .As a general rule, “what must be accepted is what was offered” , it exclusive of addition, deletion, or qualification. However, there is one major exception to the rule that acceptance must be communicated that is postal rule.

Postal rule is a well-known legal principle in contract law. The postal rule of acceptance of an offer became entrenched in the common law of contact in the English courts and therefore in the Australia courts during the nineteenth century. Moreover, it continues to apply today even that more efficient methods of communication have since emerged. Postal rule states that “postal service is an acceptable method of communication between offeror and offeree, if a letter of acceptance takes effect immediately upon posting, rather than upon receipt , and acceptance is therefore taken to have been communicated at the time of posting the letter” . As an academic problem, three possible solutions that offer made through the post might be regarded as acceptance in complete either, when the letter of acceptance put into the post; when it is delivered to the offeror’s address; or when the letter of acceptance is brought to the actual notice of the offeror. Therefore, the disadvantage is that acceptance is formed before offeror know about the acceptance. Indeed, the postal rule is unfair to the offeror, because offeror does not know