Acceptance

Question 1

Define acceptance

Answer 1

Unconditional agreement to all the terms of the offer

Question 2

Does a request for information revoke the offer?

Answer 2

No

Question 3

Case that shows a request for additional information does not revoke the offer.

Answer 3

Stevenson v McLean (1880)

Question 4

Facts of Stevenson v McLean (1880)

Answer 4

Offer was for iron.
Offeree sent a telegram asking if he could pay in installments.
Offerer did not reply and sold the iron to a third party.
Offeree then sent a second telegram accepting the offer and the offerer could not supply the iron as it had been sold to someone else.
Offerer was liable for breach of contract as the offerees first telegram was a request for information not a counter-offer.

Question 5

What forms can acceptance take?

Answer 5

Spoken word
Written word
Gesture

Question 6

Does acceptance for a unilateral offer need to communicated?

Answer 6

No

Question 7

Which case shows that for bilateral offers, the offeree must accept the offer, generally?

Answer 7

Felthouse v Bindley (1863)

Question 8

Facts of Felthouse v Bindley (1863).

Answer 8

An uncle wanted to buy his nephew’s horse and wrote a letter saying: “If I hear no more about him, I shall consider the horse mine for £30.”
The nephew didn’t respond (although he did want to go through with the exchange) so there was no acceptance.

Question 9

Which case shows that acceptance can, sometimes, be inferred from the actions of the parties?

Answer 9

Brogden v Metropolitan Railway (1877)

Question 10

What is the postal rule?

Answer 10

States that a letter of acceptance taked effect from the moment of posting

Question 11

What is the postal rule?

Answer 11

States that a letter of acceptance taked effect from the moment of posting

Question 12

Case for postal rule.

Answer 12

Adams v Lindsell (1818)

Question 13

Which 20th century case suggests that the postal rule does not apply to more modern technologies, for which acceptance only occurs when the acceptance is received?

Answer 13

Entores Ltd v Miles Far East Co. (1955)

Question 14

First point Mondial Shipping and Chartering BV v Astarte Shipping Ltd (1995) clarified about postal rule for modern technologies.

Answer 14

1. The postal rule does not apply for faxes, and the acceptance occurs at the moment of receipt.

Question 15

Second point Mondial Shipping and Chartering BV v Astarte Shipping Ltd (1995) clarified about postal rule for modern technologies.

Answer 15

2. What if fax has arrived but is not read?
   A reasonable test is applied.
   If it arrived in the middle of the night, this does not count.
   If inside office hours, it does.

Question 16

Case which suggests time of acceptance for emails.

Answer 16

Thomas v BPE Solicitors (2010)

Question 17

Facts of Thomas v BPE Solicitors (2010).

Answer 17

Concerned whether a business email which arrived at 6pm on a Friday counted as an acceptance.
Appears to confirm that the postal rule does not apply to emails but instead judgement as to point of acceptance should be considered on a case-to-case basis, taking into account context, reasonableness and ‘sound business practice’.
In this case the court said there was acceptance.

Question 18

What did the Electronic Commerce (EC Directive) Regulations 2022 set out?

Answer 18

1. When something is advertised on the Web, this is an invitation to treat.
2. When you indication you wish to buy it, this is an offer.
3. Even if the seller then accepts this offer, the contract is voidable (not legally binding) if basic information in the treat is incorrect

Question 19

What must a service provider (e.g , Ebay) do according to the Electronic Commerce (EC Directive) Regulations 2002?

Answer 19

1. Provide receipts for orders (the offer) in a timely fashion.
2. Allow purchasers to amend their order (offer) before it is sent.
3. Provide their (the service providers) name and address.

Question 20

What does the Consumer Protection (Distance Selling) Regulations 2000 say?

Answer 20

If a contract is made at a distance (e.g., by letter/email/website) the consumer is entitled to a ‘cooling off’ period in which they can cancel the contract.
The cooling off period is 7 working days following the receipt of the goods.