Acceptance Flashcards
Define ‘acceptance’
The unconditional acceptance of the terms proposed by the offeror
Jones v Daniel
The letter purporting to accept contained additional terms that were not included in the original offer, no contract was formed
Rules of acceptance - communication
Acceptance must be communicated, can be made expressly (written/verbally) or implied (by conduct as in unilateral contracts - Carlil)
Legal principle of Entores v Miles Far east corp
Contract was made when acceptance was received
It was received on the telex machine ‘during normal office hours’ even though it was no read till the next day
Legal principle of Brinkibon v Stahlag Steel
House of Lords established that the high court had no jurisdiction as the contract was formed in Vienna
Silence does not amount to acceptance
Felthouse v Bindley
- No contract, silence does not amount to acceptance
Rules of acceptance 2
Must meet any stipulated method of acceptance - the offeror can set down specific method of acceptance
Eliason v Henshaw
No contract as the acceptance was no sent by wagon
Rules of acceptance 3
Must meet the postal rules if relevant - where acceptance is made via post, it is complete
Adams v Lindsell
Where acceptance is made via post, it is complete immediately after the letter has been posted
Household fire insurance v Grant
Acceptnace of Grant’s offer to buy shares in the C’s company was posted to him but he never received it - contract was concluded on posting
Exceptions of postal rule - Holwell securities v Hughes
Postal rule will only apply if it was reasonable to use the post to make acceptance and if it does not lead to manifest inconvenience or absurdity
When will the postal rule not apply?
- The letter of acceptance has not been properly posted
- Not properly addressed
- Terms of the agreement excluded the postal rule
- Where it is unreasonable to use the post
