Acceptance Flashcards
what step in a contract is acceptance?
2
define acceptance
a ‘final expression of agreement to the terms of an offer’
what are the 5 elements to acceptance?
- acceptance must be positive + unqualified
- requests for info. = no acceptance
- forms of acceptance
- specified methods of acceptance
- methods of communication of acceptance
what case states that there must be certainty when accepting an offer (e.g. yes, not yes but/ if…)?
Hyde v Wrench
what case states that a mere request for info. doesn’t terminate an offer so it is still open?
Steveson v McLean
how can acceptance of a bilateral offer be communicated?
words or conduct
how can acceptance of a unilateral offer be communicated? + example
conduct e.g. returning a lost dog
can words be verbal or written?
yes - both
who must acceptance of an offer be communicated to?
person making the offer
what case states that, if offer states acceptance must be in specified form, any other type of acceptance is unlikely to be valid?
Yates v Pulleyn
what case states that acceptance of a unilateral offer is communicated through conduct?
Carlill v Carbolic Smokeball Co.
In what case did the offeree ask to reply ‘by return of post’, but it was said that any method arriving before that would be sufficient?
Tin v Hoffman
what case states that in general, silence/ inaction cannot be an acceptance as some positive act is needed?
Felthouse v Bindley
what case states that positive conduct can be implied in offer e.g. starting to use goods sent on approval?
Carlill v Carbolic Smokeball Co.
when do the postal rules apply?
when it is agreed by the parties that post will be used as means of communication
what are the postal rules (4)?
- only applies to letters of acceptance, not offers/ counter-offers/ revocation
- only applies if post is usual method of communicated or specifically stated
- must be stamped correctly + addressed letter
- C must be able to prove letter was posted
when does the postal rule say that a letter of acceptance takes effect?
at the moment of posting
in which case were the postal rules first clarified?
Adams v Lindsell
in what case did Bramwell LJ note that an offeror could avoid postal rules by stating ‘your answer is only to bind if it reaches me’
Household fire insurance v Grant
what is the exception to the postal rule? + case
Holwell Securities v Hughes: making it a term that acceptance will only take efefct when it is communicated to him (notice in writing)
what was the first case that stated phone calls can be accepted as a form of acceptance , but if not heard due to fault - no communication of acceptance?
Entores v Miles far east corporation
what case confirmed Entores v Miles far east corporation
Brinkibon
Although Telex has been replaced by more modern methods of communication, do the same principles apply to, e.g., emailing, texting…?
yes
what case states that, as a general rule, acceptance via email is communicated when it arrives, but if out of office hours, it will be communicated at start of next working day?
Mondial Shipping & Chartering
what case confirmed the view in Mondial Shipping & Chartering?
Thomas v BPE solicitors
what are the 3 elements to methods of communication of acceptance?
-conduct
-acceptance via post
-electric + instantaneous forms of communication
what piece of legislation states that just retaining goods does not amount to an acceptance of any offer to sell the goods?
Consumer Protection (Distance Selling) Regulations 2000
What does the Consumer Protection (Distance Selling) Regulations 2000 say regarding that the regulations also apply to modern methods?
seller must give consumer ‘cooling off’ period - right to cancel within 7 working days - allows for second thought
what piece of legislation has an impact on offer + acceptance by electronic means? + what does it say?
The Electronic Commerce Regulations 2002 - acceptance includes acknowledgement of receipt (confirmation email)
what do such regulations require service providers to provide? (3)
-receipt for orders
-allow purchasers to amend orders easily before sending off
-provide name + address of service provider
what are 2 problems with offer + acceptance?
- most contracts now not formed as a result of 1 party making straightforward contract + other simply accepting
- common use of ‘standard forms’ of business as it becomes ‘battle of the forms’ - general rule: take last counter offer as having being accepted + give effects to its terms in the contract
