Contract law postal rule?
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Contract law postal rule?
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Hey, i have a scenario and i have to give legal advice on.. i'm just having a bit of difficulty what the outcome should be..
so a man (X) offers via email to sell a vintage clock for $10000 to a person living in a different country (Y). Y tells X he's interested (but has not accepted yet) and Y accepts by sends a check with his letter of acceptance via post on the 3rd. he has addressed the letter correctly, however it gets lost in the mail system. A week later, X hasn't heard anything from Y, and has got another interested buyer for the clock, who's willing to buy for $15000. X calls Y but no one answers, so X decides to sell the clock to the new guy.
Y doesn't hear anything from X as to the receipt of his letter, so calls X up on the 16th, to hear that he has already sold the clock. Y wants to sue X for breach of contract.
so in my opinion, the postal rule doesn't apply, as X did not contemplate the use of post as a methods of acceptance, and no mode of acceptance having been given, it shouild have been in the same form as the offer, so email. so since no acceptance, X's revocation is effective on teh 15th, and Y can't sue X for breach of contract.
is this right?
if the postal rule had applied though, Y does have a case, as acceptance would have occurred on the 5th.
is this right?
does lapse of offer come into this at all?
thanks!
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AJ
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No, Y cannot sue.
X never knew that Y was accepting the offer. It is Y responsiblility to make sure that X knows Y is accepting the offer.
Therefore there was no contract to begin with because X never knew. |
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