Issue: The issue in this case is if it can be considered by the parties that a legally enforceable contract has been concluded when Simon posted the letter containing acceptance of the offer and if the postal rule of acceptance is applicable in this case.
Rule: The main requirements of a legally enforceable contract are that there should be an agreement between the parties, which generally consists of an offer and its acceptance and at the same time, there should be a meeting of the minds of the parties. In this regard, acceptance can be described as an unequivocal statement made by the party to whom the offer was made. The law also provides that in order to be effective, it is necessary that the acceptance of one party should be communicated to the other party. Therefore in this regard only a mental decision that the offer has been accepted is not sufficient. According to the general rule, the contract is considered as concluded when the acceptance is communicated to the party making the offer. In case of instantaneous modes of communication, it is considered that the acceptance is received when the party accepting the offer gave it to the offeror. However when post has been used by the parties to communicate the acceptance of the offer, there is a special rule that is known as the postal rule of acceptance (Adams v Lindsell, 1818). According to this rule, when post has been contemplated by the parties as the means of communicating the acceptance of the offer, acceptance takes place when the letter containing acceptance has been posted (Bressan v Squires, 1974).
Application: On the basis of the above-mentioned discussion, it can be said that although the postal rule provides that it is considered that acceptance is received by the party making the when the letter containing the acceptance has been posted. However in this regard, it is also required that post should have been contemplative by the parties as the means of communicating acceptance. In this case, it has been clearly provided by Richard that in case the offer is accepted, the acceptance should be sent by express courier. However, Simon decided to send the acceptance by ordinary post. As a result, it can be said in this case that the postal rule of acceptance is not applicable in this case and therefore the contract has not been concluded when Simon posted the letter containing the acceptance.