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Instantaneous Communication and Contractual Acceptance

. The H o L approved the Entores approach, but did not indicate whether the same rule should apply in all circumstances. . Lord Wilberforce stated as follows 'No universal rule can cover all such cases: they must be resolved by reference to the intentions of the parties, by sound business practice and in some cases by a judgment as to where the risks should lie'. · Dealt with a fax giving notice under a contract. . Held to be effective when the acceptor could reasonably have expected it to be read. . Particularly important in relation to communication such as email and voicemail. . The acceptor should be allowed to assume that the communication will be read at a time that could reasonably be expected in the normal course of events. . An email had been sent at 6pm on a Friday evening before a bank holiday weekend. . Defendant solicitors argued that it was not effective when received in the mailbox as it was sent after working hours and would only be seen on Tuesday morning. . Blair J decided that the issue must be resolved with reference to Lord Wilberforce's quote in Brinkibon. . It was held that in the 'context' in which that email was sent, it was not to be deemed to be sent after working hours and was therefore effective at 6pm on the Friday if the email was an acceptance. · Obiter statements · The postal rule does not apply to emails · The phrase 'giving notice to' ... implied that the person to whom notice was being given must actually have seen the email- arrival in the inbox would not be sufficient. · An offeror can specify and insist on a particular mode of acceptance. . In this case, email was not a prescribed mode. · Greenclose Ltd v Natwest was distinguished on the point of prescribed mode of acceptance. . An issue in the case was whether a contractual default notice would have been validly served by email. . It was held that email would have been a prescribed means of communication in this case. . The contract is formed when the seller acknowledges to the purchaser that his/her offer was accepted. · Article 11 EU Directive on Electronic Commerce (Directive 2000/31/EC)- Regulation 11 Electronic Commerce (EC Directive) Regulations 2002 . ... the order and acknowledgement of receipt are deemed to be received when the parties to whom they are addressed are able to access them. / . Instantaneous communication can arguably differ from communication such as the post. . Issues can arise as to time and place of delivery of the communication, occurrence of delivery, receipt of the communication etc. . Therefore, it becomes important to think about and decipher when an acceptance might be effective if sent through instantaneous communication. · A number of possibilities could be argued. . The starting point of the law in this area is Entores v Miles Far East. . Case law provides an