Acceptance

Question 1

Provide an introduction for acceptance.

Answer 1

• Agreement to proposed offer.
• In order to form a contract, acceptance must agree to all terms of that offer.

Question 2

State + explain the first point of acceptance, who can accept offer?

Answer 2

• Acceptance must be from person to whom offer was made to- offeree.
• Another person who hears offer can’t try to accept it as it wasn’t made to them.
• Situations where anyone can accept an offer- when offer’s made to whole world.

Question 3

State + explain the second point of acceptance, how can you accept an offer?

Answer 3

• If there’s no stated way of communicating acceptance then any effective method will do.
• Method must be effective.
  A Specific Way: (not always applicable)
• Eliason v Henshaw: offeror can set out a specific way for offer to be accepted- if not in this format, wouldn’t be a valid contract.
  Silence: (not always applicable)
• Felthouse v Bindley: not possible to accept offer by staying silent.

Question 4

State + explain the third point of acceptance, how does acceptance take place?

Answer 4

• Takes place when acceptance is communicated to offeror.
• 3 ways of accepting an offer that need special attention.
  Acceptance By Conduct:
• Carlill v Carbolic Smoke Ball: offer can be accepted through conduct.
  Acceptance By Use Of Post- Postal Rules:
• Acceptance assumed to have been made at moment it was posted- as at this point cannot get acceptance back.
• Adams v Lindsell: created postal rules-only apply to letters of acceptance- not offers + counter-offers, + rules are:
  1) Post is usual/expected means of communication.
  2) Letter must be properly addressed + stamped.
  3) Offeree must be able to prove letter was posted.
• Posting means letter is placed in postbox or in hands of a post office employee- even if gets lost in post, still has been accepted + a valid contract
  Electronic Methods Of Communication:
• Law struggled to deal with issues arising from modern methods of communication (e.g. texts, emails, e.t.c.)
• Encores v Miles Far East: Lord Denning confirmed that acceptance, apart from postal rules, occurs when offeror is made aware of acceptance.
• Brinkibon v Stahag Stahl: issue of messages sent out-of-hours, when a business is closed- only accepted once opened.
• Thomas + Gander v BPE Solicitors: law continues to fail to address these problems with respect to modern methods of communication. Decided that each case is now decided on its particular facts (who, how, + when it was accepted).