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5c stamp when turning a statement of account into contract
Hi folks,
In all 3 of the main debt discharge on processes (BOE, Promissory Note and A4V) mark says to use a 5c stamp and sign across the corner.
Mark has said stated a couple of of different things in different webinars about what the purpose for the 5c stamp is (I realise it doesn’t have to be a 5c stamp but that’s what he uses):
-The 5c stamp is to cover stamp duty
-Putting said 5c stamp on the contract and signing across it “compels the public to perform”
-You sign accross the 5c stamp to become the postmaster
Can someone explain what this means?
Where does the “stamp duty” thing come from? (Only info I can find online about stamp duty is for property sales)
-How does the stamp compel the public to perform? Is there some legislation or some other legal principle that this stems from?
Your help is appreciated, cheers in advance!
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8 Replies
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Hi Brandon,
Before I make an attempt to answer this I’ll just make the disclaimer that I am totally new to this and really have no clue. So be warned.
My understanding is that the 5c is the consideration that is required by law to make a contract valid.
Here is some stuff I found online.
“For consideration to be deemed valid, it has to contain some act, payment of money and a promise or abstinence. Therefore, one party needs to make a promise against the promise of the second party. Only then can you have a valid consideration in your contract.”
“Consideration is the price that is asked by the promisor in exchange for their promise – the price for a promise.
In many jurisdictions consideration is not an essential element of a contract – it is sufficient that parties have reached a binding agreement. However, the common law requires that (subject to limited exceptions), for an agreement to be binding, the promisee (or promisees) must provide consideration (payment of some kind) for the promise they have received.”
I’ve read this about 12 times now and I think it’s starting to make sense.
This website explains it in more detail https://www.australiancontractlaw.info/law/consideration but I think it’s doing more to confuse me than help me understand.
Hope this helps
australiancontractlaw.info
Consideration — Australian Contract Law
Consideration — Australian Contract Law
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Hi
Does it mean a higher priced stamp can be used as consideration? the 5c stamp isn’t available near me. Just double checking
Thanks
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Yes it can be any denomination. I used a 10c for my PN contract.
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Thanks Brandon 🙂
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Oh and please correct me if I got any of this wrong.
australiancontractlaw.info
Consideration — Australian Contract Law
Consideration — Australian Contract Law
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Thanks for this, it is very helpful 🙂
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5 cent stamps, 10 cent stamps… if only i knew where this Post Office is!
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If you are to miss placing the 5c stamp on the contract does this mean the contract cant be enforced? Is there something else on the contract that could be claimed as value?