Deemed receipt: Overview, definition, and example
What is deemed receipt?
Deemed receipt refers to the legal concept where an item or communication, such as a notice, document, or payment, is considered to have been received by a party at a certain time, even if the actual receipt did not occur at that time. Deemed receipt is often applied in situations where there are standard procedures for delivery or where the timing of receipt is determined by the terms of an agreement or law. This concept helps establish clarity in legal or contractual matters, especially when there may be uncertainty about when something was physically received.
For example, a contract may specify that a notice is deemed to be received three days after it is sent via mail, regardless of whether the recipient actually receives it on that date.
Why is deemed receipt important?
Deemed receipt is important because it helps provide certainty in legal and business transactions by establishing a clear date for when documents or communications are considered received, which can be critical for meeting deadlines, enforcing contracts, or triggering rights and obligations. It is particularly useful in cases where the actual timing of receipt is difficult to track or verify, such as with postal mail, emails, or other forms of communication.
For businesses, deemed receipt ensures that important communications, such as notices of default, legal claims, or business decisions, are considered received within a specified time frame, even if there are delays in actual delivery. For individuals, understanding the concept of deemed receipt ensures that deadlines and responsibilities are met, even if they were not aware of the receipt of certain information immediately.
Understanding deemed receipt through an example
Imagine a company sends a notice of contract termination to a supplier via regular mail. The contract specifies that any notice sent by mail is deemed to be received five business days after it is sent. Even if the supplier does not receive the notice for another week, the notice is legally considered to have been received five business days after it was sent. This provides certainty to both parties about when the notice takes effect and avoids disputes over timing.
In another example, an employee’s resignation letter is sent by email to their employer. The company’s policy specifies that resignation letters are deemed to be received the day the email is sent, even if the employer does not check their inbox until the next day. This ensures clarity on when the resignation takes effect, avoiding confusion about the employee's last day of work.
An example of a deemed receipt clause
Here’s how a deemed receipt clause might appear in a contract:
"Any notice, demand, or communication under this Agreement shall be deemed to have been received by the recipient (i) upon delivery if delivered in person, or (ii) three (3) business days after being sent by prepaid mail or (iii) on the date sent if sent by email, provided that the sender receives an automatic receipt confirmation from the recipient’s email system."
Conclusion
Deemed receipt is a useful legal concept that establishes a clear and defined point in time when communications or documents are considered received, regardless of actual receipt. This is especially important in contracts, legal notices, and business dealings, as it ensures that deadlines and obligations are met and prevents disputes over timing. For businesses and individuals, understanding and applying deemed receipt clauses helps maintain order and clarity in legal and contractual relationships.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.