What are the advantages and disadvantages of the Electronic Transaction Act and Internet Contract vs. Postal Rule?

 

The basic difference between the postal rule and the electronic and internet business transactions revolves around the communication technologies that have been on constant improvement with technology being dynamic.

Step-by-step explanation

The use of new technology has had several advantages over the use of postal mailbox technologies as herein noted below:

(i). The electronic and internet act gives a fair playing ground for both parties to a contract namely the offerer and the offeree. They all have powers to rescind the offer, unlike the postal policy that works to the disadvantages of the offerer.

(ii). With electronic and internet platforms, it is easier to communicate the revocation on landing a more lucrative order unlike with the postal rule where the offeree's response is high sought first before a next step taking place.

(iii) It is easier with the electronic platform to clarify ambiguous issues in the proposals touching on offers and counteroffers.

Disadvantages. 

(i) The disadvantages to electronic and internet platforms are the high risk of misrepresentation with the possibility to copy signature since the advent of electronic signatures. This, therefore, poses challenges to both parties to a contract.

(ii) Secondly, electronic platforms are not welcoming both generations thus locking out productive nearly all of the X and baby boomers generations are party to the usage of things like website contracts.

Postal rule 

(i). The postal rule has the following advantages over the electronic and internet usage for contracts. To start with, the offeree enjoys the advantage to benefit from the lucrative offer as it cannot be canceled by the offerer without reception of his/her response. 

(ii). Secondly, the offeree has the discretion to cancel the offer without replying but as an absolute advantage when it is a good deal. 

(iii) It is the safest way to beat misrepresentation as signs are normally manually appended. 

Disadvantages :

(i). Once the offer has been placed it cannot be canceled by the offerer thus being discriminative to the offerer but favorable to the offeree. 

(ii) The postal rule is not flexible to allow for clarifications where ambiguity to the terms in the contract are noted.