Acceptance Flashcards
How is acceptance defined?
A final and unequivocal expression of agreement to the terms of an offer.
What are the two components of acceptance?
Acceptance consists of the fact of acceptance (i.e. proof that acceptance actually occurred) and communication of that acceptance.
Felthouse v. Bindley (1862)
British case
Uncle trying to buy horse from nephew. After some negotiation on price the uncle sent an offer to the nephew and indicated if he heard nothing from the nephew he would take this as acceptance of the offer. Court rejected the uncle’s attempt to claim the horse - silence GENERALLY cannot be taken as acceptance of an offer.
Modern day practice would be called “inertia selling.” Company shipping you something you didn’t want and then if they don’t hear a rejection from you taking to mean that you bought it. Not legal in the EU.
What is the postal rule?
In cases where acceptance can be sent by mail, acceptance takes effect when the letter of acceptance is posted. Offers can explicitly specify the postal rule does not apply.
Kelly v. Cruise Catering
Irish case
Person injured on Norweigan crusieline that was hired in Dublin. Court found that contract was formed in Ireland because of the postal rule (Kelly posted his acceptance of employment agreement in Ireland.) Ruling also upheld continued validity of the postal rule itself.
Byrne v. Van Tienhoven
British case
Defendant makes offer to sell by mail. Tries to mail revocation of offer, but offer acceptance was posted first. Postal rule applies.
Holwell Securities v Hughes
British case
Offeree posts letter of acceptance to offeror that never arrives. Court rules acceptance never occurred since offeror had required “notice in writing” of acceptance of the offer and they never received such notice.
R v Clarke
British case
You cannot accept an offer you know nothing about. Case of guy giving information of a crime that he didn’t know there was a reward about.
Is the motivation for accepting an offer generally relevant in contract formation?
One’s motivation for accepting an offer is not generally relevant in contract formation. (Old lady confessing sins on death bed.)
When can silence constitute acceptance of an offer?
Where both parties agree that silence will constitute acceptance
Where the need to express communication of acceptance is dispensed with by reason of past dealing between the parties
When the contract involves a service which cannot be revoked once give
Uncle trying to buy horse from nephew. After some negotiation on price the uncle sent an offer to the nephew and indicated if he heard nothing from the nephew he would take this as acceptance of the offer. Court rejected the uncle’s attempt to claim the horse - silence GENERALLY cannot be taken as acceptance of an offer.
Modern day practice would be called “inertia selling.” Company shipping you something you didn’t want and then if they don’t hear a rejection from you taking to mean that you bought it. Not legal in the EU.
Felthouse v. Bindley (1862)
British case
Person injured on Norweigan crusieline that was hired in Dublin. Court found that contract was formed in Ireland because of the postal rule (Kelly posted his acceptance of employment agreement in Ireland.) Ruling also upheld continued validity of the postal rule itself.
Kelly v. Cruise Catering
Irish case
Defendant makes offer to sell by mail. Tries to mail revocation of offer, but offer acceptance was posted first. Postal rule applies.
Byrne v. Van Tienhoven
British case
Offeree posts letter of acceptance to offeror that never arrives. Court rules acceptance never occurred since offeror had required “notice in writing” of acceptance of the offer and they never received such notice.
Holwell Securities v Hughes
British case
You cannot accept an offer you know nothing about. Case of guy giving information of a crime that he didn’t know there was a reward about.
R v Clarke
British case
