Acceptance of consent made by letter or telegram does not bind the offerer except from the time it came to his knowledge. true or false
The correct answer and explanation is:
Answer: True.
Explanation:
In contract law, the acceptance of an offer is a crucial element that creates a binding agreement. However, the way acceptance is communicated and when it becomes effective can vary depending on the method used.
When acceptance is made by letter, telegram, or other forms of communication that are not instantaneous, the general rule is that the acceptance only binds the offeror from the time the acceptance comes to their knowledge, not from the moment the acceptance was sent.
This is known as the “rule of communication of acceptance” and it applies particularly in cases where the acceptance is communicated by mail, telegram, or similar methods.
Key points:
- Communication of acceptance: For an acceptance to be effective and bind the offeror, it must be communicated to the offeror.
- Postal rule exception: Normally, when acceptance is sent by post, the acceptance is effective the moment the letter is posted (known as the “postal rule”). This protects the offeree because the offeror cannot revoke the offer once acceptance is posted.
- No postal rule for telegram/letter acceptance knowledge: However, when acceptance is sent by telegram or letter, but the offeror only becomes bound when the acceptance comes to their actual knowledge. This means if the letter or telegram is lost or delayed and never received, the acceptance is not effective and does not bind the offeror.
- Practical implication: This rule protects the offeror by preventing them from being bound by an acceptance they never actually know about.
Example:
- Suppose A offers to sell goods to B.
- B sends acceptance by telegram.
- The telegram is delayed or lost and A never receives or knows about the acceptance.
- In this case, A is not bound by the acceptance since the acceptance never came to A’s knowledge.
Summary:
The statement “Acceptance of consent made by letter or telegram does not bind the offeror except from the time it came to his knowledge” is true because acceptance communicated through these means is only effective upon actual receipt or knowledge by the offeror, unlike the postal rule where acceptance is effective upon posting.