business law

Essay by dklingElementary School, 1st gradeF, September 2014

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Assignment - ACCT 2313 Business Law Due date: 15th April 2014

Group members: Ling Deng Kei , Tong Chung Kieng , Joy Ting , Steven Ngui


This problem-based question on contract law tests the candidates' ability to identify and apply the law relating to the postal rule in relation to offer and acceptance.


Whether there has been a valid acceptance by Jenny of Sam's offer so as to create a binding contract between them.


Offer and acceptance - According to Section 2(a) of the Contracts Act 1950, an offer is said to be made when one person signifies to another his willingness to do or abstain from doing anything with a view to obtaining the assent of that other to the act or abstinence. Section 2(b) states that an acceptance takes place when the person to whom the proposal is made signifies his assent thereto. Felthouse v Bindley (1862) 11 CBNS 869 - Mere silence or inaction on the part of the offered is not acceptance.

Postal Rule - Section 4(2) of the Contracts Act 1950, where the parties have contemplated the use of the post as a means of communication, the communication of the acceptance is complete as against the proposer when it is put in a course of transmission to him so as to be out of the power of the acceptor.

Revocation of offer - By Section 5(1), a proposal may be revoked at any time before the communication of its acceptance is complete as against the proposer but not afterwards. Further, by Section 4(3)(b), the communication of a revocation is complete as against the person to whom it is made when it comes to his knowledge.


At first, Jenny wrote back a letter asked Sam whether Sam can go down the...