Brinkibon Ltd v Stahag Stahl GmbH [1983] 2 AC 34 is a landmark decision of the House of Lords on the formation of a contract using modern communication.
Brinkibon was a London company that bought steel from Stahag, a seller based in Austria.
[2] Lord Wilberforce, however, did not see the rule as applying in all circumstances: .... it appears logical that this should be at the place where acceptance is communicated to the offeror.... ...
There may be some error or default at the recipient’s end which prevents receipt at the time contemplated and believed in by the sender.
Unquestionably, as a general proposition, when an offer is made, it is necessary in order to make a binding contract, not only that it should be accepted, but that the acceptance should be notified.’ And the postal rule is an exception based on ‘commercial expediency… more convenient, and makes on the whole for greater fairness, than the general rule itself would do.