Acceptance Flashcards
When does acceptance occur
Where the offeree accepts the WHOLE OFFER.
No acceptance if they say ‘yes if…’ = this is a counter offer.
How can one accept an offer
ANY form providing it is unequivocal and communicated with the offeror.
DOES NOT have to be in the same format that the offer was given so you can accept to an email offer via text
What does the case of Felthouse v Bindley show
Silence doesnt communicate acceptance there must be some POSITIVE act by the offeree to allow acceptance
When does acceptance take place
General rule is that acceptance takes place when the acceptance is communicated to the offeror
Acceptance via conduct
Where the offeree acts can allow one to understand acceptance
Reveille v Anotech =
Seen commonly in unilateral contracts where performance communicates acceptance
Carlil v Carbolic smoke ball
Acceptance through post
Postal rule was developed in the nineteenth century that stated that once you had posted a letter you could not get it back.
Rules regarding acceptance by letter
- rules only apply if post is the usual or expected means of communication
- the letter must be properly stamped and addresses
- the offeree must be able to prove the letter was posted.
If the rules apply then acceptance takes place the minute the letter is posted.
Adams v Lindsell
Lindsell offered wool for sale and asked for reply via post. letter was delayed in the post. On receiving the letter Adams accepted the same day. However lindsell assumed Adams didn’t want the wool because of the delay and sold it to someone else.
VALID CONTRACT = as acceptance took place as soon as the letter was posted and there was no communication about revoking the letter
Brinkibon v Stahag - electronic methods of communication
Out-of-hours messages are only effective once the office is reopened.
Article 11 of the electronic commerce regulation 2002
where a buyer is required to give consent technologically then the contract is made where the buyer receives communication of a receipt of acceptance from the seller. Sellers make the acceptance but it only happens when the buyer is told that acceptance has happened through form of receipts
What MUST acceptance be
- a final and unqualified expression of assent to the terms as set out in the offer
- must be communicated
-doesn’t have to take the form of words. Performance, handling of goods, starting work etc can all communicate acceptance - If it seeks to vary terms, then it would be a counter- offer
Communicating acceptance
Felthouse v Bindley 1862 11 CB:
communication of acceptance was not done and therefore not permissible despite having all intentions to accept the offer
Kennedy v Thomasson 1929 1 Ch 426
Silence and acceptance
Rust v Abbey Life Insurance Co Ltd 1979- acceptance via silence was accepted to be a form of communication based upon:
- previous nature of their relation
- previous nature of transactions
What did the cases of Gibson and Storer v Manchester City Council show?
STORER: correspondence and signature on agreement of sale was sufficient acceptance
Gibson: Initial letter by council was deemed to uncertain to be an offer and so any correspondence didn’t satisfy the condition of offer and acceptance.
When do conditions amount to a counter offer
Where new conditions are added that were not included within the original offer.
Jones v Daniel 1894
Hyde v Wrench
Wrench and Hyde were in negotiation for sale of farm.
Wrench clearly stated he would not go below £1000 to which Hyde responded with a counter offer of £950.
Hyde tried to return to the original £1000 that was offered however his initial counter offer of 950 destroyed this offer and therefore could not return to it unless Wrench offered it again of which he is under no obligation to do.
COUNTER OFFER DESTROYS ORIGINAL OFFER
