LAW 1501 Lecture Notes - Lecture 5: Posting Rule, Law Reports
Philip wants to sell his house and advertises it in the local newspaper at $370,000, giving his
telephone number. Jim sees the advertisement and rings Philip and makes an appointment to
see the house. Jim likes the house but cannot agree a price with Philip, his highest offer being
$367,000, while Philip insists on $370,000. On the following Monday Jim receives a letter from
Philip offering him the house for $ 368,500 and saying that Jim can have until noon on Friday
to think about it. On Wednesday evening Jim meets his brother Garrett in their local. Garrett
tells him that Philip's son-in-law bought the house earlier that day for $367,000. Jim goes
straight home and writes a letter to Philip, accepting his offer to sell at $368,500. He posts the
letter immediately and Philip receives it on Thursday morning, but replies by return saying "You
are too late. I have sold the house to my son-in-law."
Advise Jim
IRAC
Issue- The issue which arise in this problem are invitation to treat counter- offer, the statues of a
promise to keep an offer open revocation and the postal rule. Revocation, can Philip revoke his
offer, although he promised Jim.
Issue 5- Does Philip’s posting of the letter create a contract between P and J? If so, when is the
contract formed?
In general, the offeree’s acceptance of the offer must be communicated to the offer. (Jim accpect
offer from P). The postal rule however is an exepction to this. If the acceptance is posted,
acceptance is complete the moment the letter is placed in the post box. The postal rule was first
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