Acceptance

Question 1

4 rules of acceptance

Answer 1

1) the offeree must be aware of an offer or have it in mind to accept it

2) the offer must be accepted as it stands

3) acceptance of the offer must be communicated

4) the acceptance must be in the right mode

Question 2

What is the case referring to the rule that ‘the offeree must be aware of an offer or have it in mind to accept it’?

Answer 2

Taylor v Laird 1856

Question 3

2 cases that support the general rule that acceptance must be communicated to the offeror

Answer 3

Entores v Mile Far East Corporation 1955

Holwell Securities Ltd v Hughes 1974

Question 4

2 cases that demonstrate that the ‘acceptance must be in the right mode’

Answer 4

Frank v Knight 1937

Financing Ltd v Stimson 1962

Question 5

Is silence acceptance?

Answer 5

no

Question 6

Case which demonstrate that silence is not acceptance

Answer 6

Felthouse v Bindley 1962

Question 7

Difference in silence between unilateral and bilateral contracts

Answer 7

unilateral - there is not always a requirement to communicate acceptance - this is shown by the completion of the act

bilateral - positive communication of acceptance is required

Question 8

What is the general ‘postal rule’?

Answer 8

the offer needs to arrive in order to be effective
BUT acceptance is effective at the time of posting

Question 9

Case which shows that acceptance is effective at the time of posting

Answer 9

Adams v Lindsell 1818

Question 10

Entores v Miles Far East Corp 1955

Answer 10

if an electronic communication is sent and arrives out of normal office hours, it is not effective until office hours the next day