Henthorn v Fraser (1892) Mailbox Postal Rule.

Based on Adams v Lindsell (Misdirection of letter)

7th July 

Henthorn from Birkenhead, called office of land society in Liverpool.

Henthorn negotiated to buy some houses belonging to the land society.


Secretary agreed to sell to him, giving him an option of purchase for 14days at £750.

8th July

Morning : Another person called, offered £760 for the property, offer accepted.

12 - 1 pm : Secretary withdrawed the offer made to Henthorn.


3.50 pm : Claimant delivered letter accepting the offer, but letter arrived at 8.30 pm, after the office was closed.


5pm + : Withdrawal offer arrived at Birkenhead.
Secretary opened the letter on the next morning.
Claimant sued for specific performance.


Held : Specific performance granted, Postal Rule applies as acceptance occurred before  . Defendant was told to sell the land.


**The offeree in Henthorn, on the other hand, certainly knew of the offeror’s
promise to give him an option “for fourteen days” and quite possibly relied
on it. Arguably, therefore, the “mailbox” rule should work in favor of offerees
but not against them. But this might allow offerees to speculate at the offeror’s
expense, using the telephone or telegraph to overtake a letter of acceptance
in transit when the market shifts.



Q : When the rule applies?