Acceptance

Question 1

Define Acceptance

Answer 1

• Final and unconditional agreement to all terms of an offer.
• Must be postitive, unequivocal and communicated to the offeror (Entores v Miles Far East).

Question 2

What are the different rules of communication?

Answer 2

• Silence is NOT acceptance
• Conduct can be acceptance, if done knowingly
• Conduct in ignorance of the offer is NOT acceptance
• Forgetting the offer means theres no acceptance
• Specified method of acceptance must be followed if clearly stated

Question 3

Explain Silence is NOT acceptance and give a case

Answer 3

• Accpetance must be actively communciated
• Felthouse v Bindley: Uncle wrote to Nephew saying if he heard nothing more, he would consider the horse sold. Nephew didnt reply. No Contract.

Question 4

Explain Conduct can be acceptance, if done knowingly and give a case

Answer 4

• If the offeree begins performance with knowledge of the offer, this can be acceptance by conduct.
• Williams v Carwardine: Woman giving information about murder, knowing there was a reward. Motive was personal but still acceptance.

Question 5

Explain Conduct in ignorance of the offer is NOT acceptance and give a case

Answer 5

• If you perform the action without knowing about the offer, theres no contract.
• Gibbons v Proctor: Reward was offered for information, Policeman unknowingly passed info. Not entitled to reward.

Question 6

Explain Forgetting the offer means theres no acceptance and give case

Answer 6

• Forgetting the offer means theres no acceptance
• R v Clarke: Man gave info to save himself from punishment, having forgotten the reward offer. Court says mind was not on acceptance of the offer = No Contract.

Question 7

Explain Specified method of acceptance must be followed if clearly stated and give a case

Answer 7

• If the offeror says “accept by registered post”, that must be followed unless the method used causes no disadvantage.
• Manchester Diocesan: If no exclusive method is stated, any reasonable method of acceptance is valid.

Question 8

What are the different Postal Rules

Answer 8

• Acceptance is valid when posted, not received
• Postal rule only applies if post is reasonable
• Letter must be properly posted
• Postal rule still applies even if letter is lost
• Postal rule wont apply if offeror asks for notice
• Postal rule wont apply if mistake is the offeree’s fault

Question 9

Explain Acceptance is valid when posted, not received and give a case

Answer 9

• Valid at the moment of posting not received.
• Adams v Lindsell: Delay in post led the offeror to assume the offeree wasnt interested and sold elsewhere. Contract formed when letter was posted.

Question 10

Explain Postal rule only applies if post is reasonable and give a case

Answer 10

• Postal rule only appleis if it is reasonable to use the post
• Henthorn v Fraser: Parties are in different towns, acceptance by post was held reasonable

Question 11

Explain Letter must be properly posted and give a case

Answer 11

• Letter must be correctly stamped and addressed and properly posted
• Re London & Northern Bank: A letter handed to an unauthorised clerk didnt count as valid posting.

Question 12

Explain Applies even if the letter is lost and give a case

Answer 12

• Postal rule still applies even if the letter is lost and never arrives
• Household Fire Insurance v Grant: Letter of acceptnace was never received. contract formed when posted.

Question 13

Explain Postal rule wont apply if offeror asks for notice and give a case

Answer 13

• If the offeror says “notice in writing” must be received, requires actual receipt.
• Holwell Securities v Hughes: Offer required “notice in writing” so actual receipt was needed. Posting the letter wasn’t enough. no contract formed.

Question 14

Explain Postal rule wont apply if mistake is the offeree’s fault

Answer 14

• The postal rule wont apply if mistake is the offeree’s fault
• Getreide import v Contimar: Offeree incorrectly addressed the letter, postal rule doesnt apply.

Question 15

What are the different rules for Electronic Communciation

Answer 15

• Electronic communication, acceptance is when received
• Email sent during business hours = valid when sent
• message sent out of business hours = deemed received next working day

Question 16

Explain Electronic communication, acceptance is when received and give a case

Answer 16

• Acceptance is valid when the offeror is aware of it, not when sent
• Entores v Miles Far East: if an acceptance is sent but not received, theres no contract.

Question 17

Explain Email sent during business hours = valid when sent and give a case

Answer 17

• If acceptance is sent within office hours, it may be valid even if not read immeditately.
• Thomas v BPE Solicitors: email sent at 6pm on a working day was valid.

Question 18

Explain message sent out of business hours and give a case

Answer 18

• Messages sent outside office hours are treated as received at the start of the next working day.
• Mondial Shipping v Astrate Shipping: Message sent late Friday night deemed received Monday morning, out of hours rule applies.

Question 19

What are the different ways unilateral offers can be accepted?

Answer 19

• Acceptance can be by conduct
• Offeree must not prevent themselves from fufilling the condition

Question 20

Explain Acceptance can be by conduct and give a case

Answer 20

• Acceptance can be by conduct, and there’s no need to communicate acceptance
• Carlill v Carbolic Smokeball: Company promised £100 to users who used their product and got the flu, Mrs Carlill became ill. Conduct = acceptance.

Question 21

Explain Offeree must not prevent themselves from fulfilling the condition and give a case

Answer 21

• if the offer sets a condition for acceptance, there is an implied obligation not to prevent the other party from fufilling it
• Errington v Errington: Father promised to transfer house if couple paid mortgage. once they started, he couldnt revoke.

Question 22

What is the Battle of the Forms and give a case

Answer 22

• When two busiesses send each other standard forms, the last form sent before performance is the one that counts
• Butler Machine Tool: Seller sent terms with price variation clause. buyer respondede with their own terms. Buyers terms were last so accepted terms.

Question 23

What is Tenders (bid) and give a Case

Answer 23

• A party submitting a tender makes an offer, which the other party is not obligated to accept.
• Spencer v Harding: Calling for tenders is usually an invitation to treat, not an offer. Not obligated to accept the lowest or any tender.

Question 24

What is a Multi-party contract and give a case

Answer 24

• Sometimes contracts between multiple parties can create obligations between individual parties
• Clarke v Dunraven: Competitors entered a yacht race goverend by rules like liability clauses. Contract arose, mutual acceptance of race rules.