Acceptance

Question 1

What is the definition of acceptance?

Answer 1

Acceptance must be positive and unqualified. This means that it must be an acceptance of the whole offer as it is

Question 2

What is the mirror image rule?

Answer 2

Only acceptance of the exact terms, you must accept the offer as is without ant changes or qualifications

Question 3

When will acceptance take place?

Answer 3

Communication of acceptance
Silence
Specified method of acceptance
Electronic signatures
Agreement by conduct
Postal rule
Instantaneous methods of acceptance

Question 4

Communication of acceptance?

Answer 4

The responsibility to accept can be in any form, provided that it is unequivocal and communicated to the offeror, this puts responsibility in communicating acceptance firmly on the offeree (Entores v Miles Far East)

Question 5

Silence?

Answer 5

Silence is not acceptance, there must be clear and identifiable evidence that acceptance took place, meaning that it must be communicated, this must be a positive act (Felthouse v Bindley)

Question 6

When might silence be held as acceptance?

Answer 6

Silence is not acceptance unless pre-agreed

Question 7

Specified method of acceptance?

Answer 7

The offeror may require a specific method of acceptance, this must be complied with if there is to be valid acceptance (Yates v Pulleyn)

Question 8

Specified method of acceptance exception?

Answer 8

If acceptance is required to be made in a certain way, it will still generally be sufficient of it is made in any other way as long as it does not disadvantage the offeror (Manchester Diocesan Council v C&G Investments)

Question 9

Electronic signatures?

Answer 9

The auto-generation of an electronic signature by a computer on emails can be the same as a signature (Neocleus v Rees)

Question 10

What did the Law Commission Report ‘Electronic Execution of Documents’ say about electronic signatures?

Answer 10

It stated that as long as all formalities are satisfied, the email signature is acceptance as a written one

Question 11

Agreement by conduct?

Answer 11

Quite often in business contracts, the conduct begins before the formal contract begins.
A contract will be accepted by conduct of the offeree, even if the contract remains unsigned (Reveille v Anotech)

Question 12

Postal Rule?

Answer 12

Only applies to letters of acceptance, the rules only apply if post is the usual or expected means of communication.
The letter must be properly addressed and stamped.
The offeree must be able to prove the letter was posted.
If the rules apply, acceptance takes place at the moment the letter was posted
(Adams v Lindsell)

Question 13

Instantaneous methods of communication?

Answer 13

Acceptance usually happens when received within reasonable business hours, this is usually almost simultaneous of when it was sent, this allows the recipient time to access and read it (The Brimnes)
Where sent out of hours, this is only effective once the office reopens (Brinkibon v Stahag Stahl)
If there is communication that there is an expectation of acceptance on that day, it will likely be within reasonable business hours (Thomas v BPE Solicitors)