Adams v. Lindsell

Facts

• The defendant sent an offer to sell wool, misdirecting the letter, causing delay
• The plaintiff received the offer late and posted acceptance immediately
• By the time acceptance was received, the defendant had already sold the wool to another buyer, assuming no acceptance was forthcoming
• The plaintiff sued for breach

Issue

1. At what point in time is a contract formed when acceptance is communicated by post: when posted, or when received?

Held

• The contract was complete the moment the letter of acceptance was posted
• The offeror, having chosen post as the mode of communication, bears the risk of delay inherent in that mode
• Requiring receipt for completion would create an unworkable rule, since the offeree could never be certain a contract existed until the offeror confirmed actual receipt

Ratio Decidendi

Where post is the contemplated mode of communication, acceptance is complete against the offeror as soon as the letter is posted, not when it is actually received. This is the postal rule.