The PO Box Rule in the US states that acceptance of a contract is effective when sent to the US mail. This rule is an exception to most contract law and applies to tax, insurance, and utility payments. Payment is considered made on the postmark date. Challenges to the law include delivery service and proof of postage. It’s best to use the US Postal Service and get proof of posting for protection.
In the United States (USA), the PO Box Rule, also known as the Postal Rule or Presumption of Receipt Rule, is a legal doctrine that states that acceptance of a contract is effective when it is sent to the mail of the United States United. This rule is an exception to most contract law in countries that follow the common law, which states that contracts are effective at the time of notice. Contracts may include items such as tax payments, insurance premiums and utility payments. Under this legal principle, once the sender has sent a letter, he can assume that the sender has received it; the recipient considers the contract to be on time based on the date of the postmark.
When it comes to forms of payment, a payment is said to have been made on the date the payer successfully mailed his check in a letterbox or handed it to a postal worker. Therefore, many businesses that receive payment will refer to the postmark date, not the date it actually received the payment, to determine if a payment was made on time.
There have historically been challenges to this law. Some argue that common sense should prevail when shipping a contract or payment. If a sender knows, for example, that there was a fire in the mail room of his apartment building the day he left the letter for mailing, he can’t really assume that the letter was sent to the addressee.
Delivery service can also be a problem. US courts have handed down conflicting rulings on whether a postmark or acknowledgment of receipt from a delivery service other than the US Postal Service meets the mailbox rule criteria. In the US, at least, it’s probably best to use the US Postal Service only if the sender suspects that the mailbox rule might need to be invoked.
Getting proof of postage can also be a good idea. While an official postal service postmark is usually sufficient to prove the date of mailing, there are times when a letter may get lost in the post office and not actually be postmarked for a few days. Also, a postmark from an office meter may not by itself be sufficient under the mailbox rule. Senders can best protect themselves by taking their letter to the post office and asking for proof of posting; for even greater protection, the consumer can request a traceability and proof of receipt service.
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