Acceptance.

Question 1

What is acceptance?

Answer 1

A final and unqualified assent to the terms of an offer.

Question 2

What is the main case?

Answer 2

Butler Machine Tool Co v Ex-cello.

Question 3

What are the 5 guidelines of acceptance?

Answer 3

1. Form of words or conduct.
2. Who can give assent?
3. Must the offeree intend to accept?
4. Must the offeree comply with the manner?
5. To what extent must acceptance correspond with offer?

Question 4

How must the offeree intend to accept (and case)?

Answer 4

They must know about the offer.
“Act in reliance” of offer.
R v Clarke.

Question 5

How must offeree comply with manner (and case)?

Answer 5

Mandatory/directory language.
Tinn v Hoffmann.

Question 6

What is a counter offer (and case)?

Answer 6

Varies terms of offer and rejects it -destroying it.
Hyde v Wrench.

Question 7

What is the general rule of communication of acceptance?

Answer 7

The Rule of Receipt - acceptance must be communicated and received.

Question 8

What are the 3 exceptions to acceptance being communicated?

Answer 8

1. Offeror’s negligence.
2. Postal rule.
3. Implied waiver of unilateral offers.

Question 9

What is rule of receipt case?

Answer 9

Entores v Miles Far East Corporation.

Question 10

What is the postal rule (and case)?

Answer 10

Acceptance as soon as letter is posted.
Adams v Lindsell.

Question 11

When will the postal rule apply?

Answer 11

1. If contemplated by both parties.
2. Offeror must allow it (can exclude its application).
3. Not if it would produce “manifest inconvenience and absurdity.”

Question 12

What are bilateral and unilateral contracts?

Answer 12

Bilateral - both parties are promising something.
Unilateral - 1 party promising something if the other party does something else.

Question 13

What are the rules on revocation (and case)?

Answer 13

• Revocation must be communicated to offeree (Byrne).
• If acceptance received before revocation, there is an agreement.