Explain whether there is a binding agreement where Dick posted a letter offering to sell goods to Harman on certain terms. Upon receipt of the letter,...

      

Explain whether there is a binding agreement where Dick posted a letter offering to sell goods to Harman on certain terms. Upon
receipt of the letter, Harman posted a letter accepting the offer. However, the
letter never reached Dick.

  

Answers


Maurice
This problem is based on the postal rule of acceptance of offers.
In this case it is apparent that Dick impliedly authorized Harman to communicate
acceptance by post and Harman posted his letter of acceptance though it never reached
Dick.

It is obvious that there is a binding agreement between Dick and Harman. This is because at
common law if the offeror expressly or impliedly authorizes the offeree to communicate
acceptance by post, acceptance is deemed complete when the letter is posted whether it
reaches its destination or not. Our position is consistent with the decision in Byrne V.
VanTienhoven.
maurice.mutuku answered the question on May 2, 2018 at 07:55


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