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Household Fire and Carriage Insurance Co v Grant (1879) 4ex d 219

Facts:

Notice sent to P by post. Letter never made it to D

Issue(s):

What is the time of acceptance regarding the post?

Ratio:

Whatever medium the parties themselves chose to communicate will be used to assess when acceptance occurs.

Postal Acceptance Rule – the offer is accepted when the acceptance is placed in the mail (posted), not when the offeror receives the acceptance

Analysis:

An acceptance to an agent of the offeror is considered acceptance directly to the offeror. (ex If C is the agent of B, and A accepts B’s offer by communication to C, then A and B are in a contract).
Treat post office as an agent – this way can have meeting of mind.
**Recognized law that the minds of the two parties must be brought together by mutual communication

Holding:

Time of acceptance is when was posted in the mail


Discussion

  1. Fiat Justitia Ruat Caelum 32

    Non-delivery of the mail was immaterial.

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