Business Law Postal Rule

The issue in this case is whether there has been a valid acceptance by Solo of Hans’s proposal (offer) so as to create a binding contract between them according with the three (3) situation issues that occured. In particular, it concerns the general principles regarding offer and acceptance and the particular exceptions to those rules. In this case, it also addresses the issue of revocation, because if an offer has been validly revoked by the offeror, acceptance by the offeree will not be possible. It may also be necessary to consider the appropriate remedy for a breach of contract.
An offer is a promise which is capable of acceptance, to be bound on particular terms. The person who makes the offer is known as the offeror and the person who receives it is called the offeree. The offer sets out the terms upon which the offeror is willing to enter into contractual relations with the offeree. Once the offer is accepted by an offeree, result in a legally an enforceable contract. Acceptance is necessary for the formation of a contract, but once the offeree has assented to the terms offered, a contract comes into effect and both parties are bound: the offeror can no longer withdraw his or her offer, nor can the offeree withdraw his or her acceptance. Such revocation only takes effect, however, when it has been brought to the attention of the offeree. This may lead to problems where the offeree has purported to accept the offer prior news of the revocation has been delivered. Thus, in Byrne v Tienhoven (1880), the defendants made a postal offer to the plaintiffs on 1st October. On 8th October, they posted a letter indicating their wish to revoke the offer. The letter of revocation did not arrive until 20th October and meanwhile the plaintiffs had telegraphed a letter of acceptance of the on 11th October. It was held that as revocation is not effective until actually received there was a binding contract from the time of the plaintiffs' acceptance.  
Communication of...