The "Postal Rule" Theory

The "Postal Rule" is a principle in contract law stating that a contract is considered to be accepted once the acceptance is posted, rather than when it is received by the other party. This means that if you send an acceptance letter through the mail, the agreement is effective as soon as you drop it in the mailbox, even if the other party hasn’t seen it yet. This rule helps clarify when parties are bound by a contract, especially in situations where communication delays can occur. However, it has specific limitations and is not universally applicable.