''Adams v Lindsell'

is an

English English usually refers to: * English language * English people English may also refer to: Peoples, culture, and language * ''English'', an adjective for something of, from, or related to England ** English national ide ...

contract case regarded as the first case towards the establishment of the "

postal rule The posting rule (or mailbox rule in the United States, also known as the "postal rule" or "deposited acceptance rule") is an exception to the general rule of contract law in common law countries that acceptance of an offer takes place when com ...

" for acceptance of an offer. Ordinarily, any form of acceptance must be communicated expressly to an offeror; however, it was found that where a letter of acceptance is posted, an offer is accepted "in course of post".

Facts

The case involved two parties in the sale of

wool Wool is the textile fibre obtained from sheep and other mammals, especially goats, rabbits, and camelids. The term may also refer to inorganic materials, such as mineral wool and glass wool, that have properties similar to animal wool. ...

. On 2 September, the defendants wrote to the

plaintiff A plaintiff ( Π in legal shorthand) is the party who initiates a lawsuit (also known as an ''action'') before a court. By doing so, the plaintiff seeks a legal remedy. If this search is successful, the court will issue judgment in favor of t ...

s offering to sell them certain fleeces of wool and requiring an answer in the course of post. The defendants misdirected the letter so that the plaintiffs did not receive it until 5 September.Beale (2002) p.221 The plaintiffs posted their acceptance on the same day but it was not received until 9 September. Meanwhile, on 8 September, the defendants, not having received an answer by 7 September as they had expected, sold the wool to someone else. The defendants argued that there could not be a binding contract until the answer was actually received, and until then they were free to sell the wool to another buyer.

Judgment

Law J said that if that was true it would be impossible to complete any contract through the post; if the defendants were not bound by their offer until the answer was received, then the plaintiffs would not be bound until they had received word that the defendants had received their acceptance, and this could go on indefinitely. Instead it must be considered that the offerors were making the offer to the plaintiffs during every moment that the letter was in the post. Then when the Offeree has placed his acceptance in the post there is a meeting of minds, which concludes the offer and gives effect to the acceptance.Beale (2002) p.222 The acceptance did not arrive in course of post strictly speaking (all parties understood in course of post to refer to 7 September). But because the delay was the fault of the defendant it was taken that the acceptance did arrive in course of post.

Significance

This case is the first step towards establishing the postal acceptance rule (

mailbox rule Mailbox may refer to: * Letter box (also known as a letter plate, letter hole, deed or mail slot), a private receptacle for ''incoming'' mail * Post box (also known as a drop box), a public receptacle for ''outgoing'' mail ** Pillar box, a freest ...

). It was not until 1892 in ''

Henthorn v Fraser ''Henthorn v Fraser'' 8922 Ch 27 is a decision of the Court of Appeal of England and Wales dealing with the postal rule in English law of contract formation. Facts The defendant and the claimant were situated at Liverpool and Birkenhead respect ...

'' 8922 Ch 27 that the court determined the precise timing of the acceptance, that is the moment the letter of acceptance is posted. (See also ''

Entores Ltd v Miles Far East Corporation ''Entores Ltd v Miles Far East Corporation'' Court of Appeal decision in contract law on the moment of offer and acceptance, acceptance of a contract over telex. Denning LJ found that the regular postal rule did not apply for instantaneous means ...

955 Year 955 ( CMLV) was a common year starting on Monday (link will display the full calendar) of the Julian calendar. Events By place Europe * August 10 – Battle of Lechfeld: King Otto I ("the Great") defeats the Hungarians (also ...

2 QB 327).

Notes

References

*{{cite book, last=Beale, first=Hugh, author2=Arthur Hartkamp, author3= Hein Kotz, author4= Denis Tallon, title=Cases, Materials and Texts on Contract Law, publisher=Hart Publishing, year=2002 1818 in British law English agreement case law 1818 in case law Court of King's Bench (England) cases