Lowe v Peers
Lowe v. Peers (1912)
Case Background:
This English case deals with the communication of acceptance and revocation of offers in contract law.
The dispute was about whether an offer could be revoked after acceptance but before the acceptance was communicated to the offeror.
Facts of the Case:
Peers made an offer to Lowe.
Lowe accepted the offer by posting a letter of acceptance.
Before Lowe’s acceptance reached Peers, Peers sent a revocation of the offer.
The question was: Does the revocation of the offer take effect before the acceptance is communicated?
Legal Issue:
Whether an offer can be revoked after the offeree has posted the acceptance but before the offeror receives it.
Put simply: Does the postal rule protect the offeree against revocation made after acceptance is posted?
Judgment:
The court held that once the offeree posts the acceptance, the contract is formed.
Revocation of the offer sent after posting the acceptance cannot revoke the offer.
So, even though the offeror sent revocation before receiving acceptance, the contract was already made.
Principles Established:
Postal Rule of Acceptance:
Acceptance is complete as soon as it is posted.
Irrevocability After Posting:
An offer cannot be revoked once acceptance has been posted, even if the revocation reaches the offeree before acceptance is received.
Communication of Acceptance:
Contract formation depends on the posting of acceptance, not on its receipt.
Significance of the Case:
This case confirms and reinforces the postal rule protecting offerees.
It clarifies that posting acceptance locks the offer, preventing offerors from revoking the offer afterward.
Important for contracts made by mail, especially in commercial dealings where time lags occur.
Relation to Other Cases:
Follows the principle in Adams v. Lindsell (1818), the classic postal rule case.
Contrasts with general rule where acceptance must be communicated to be effective.
Shows that the postal rule is an exception designed to ensure fairness in postal contracts.
Application in Indian Contract Law:
Indian law accepts postal rule principles, meaning acceptance by post is effective when sent.
This case illustrates how acceptance can bind parties even if communication delays or revocation attempts occur.
Summary Table
| Aspect | Details |
|---|---|
| Case Name | Lowe v. Peers (1912) |
| Legal Issue | Can an offer be revoked after acceptance is posted? |
| Court Decision | No, contract is formed when acceptance is posted |
| Principle Established | Postal rule: acceptance effective on posting |
| Importance | Protects offeree, prevents revocation after posting |
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