Acceptance Flashcards
What is the general rule regarding methods of acceptance prescribed by the offeror?
The offeror is not bound unless the terms of the offer are complied with.
This principle is illustrated in the case of Yates v Pulleyn (1975) 237 EG 183.
What was the outcome in Yates v Pulleyn regarding the method of acceptance?
The court held that the method of acceptance was valid and did not disadvantage the offeror.
The stipulated method was merely a means to ensure delivery.
What happens when no particular method of acceptance is prescribed?
The form of communication will depend upon the nature of the offer and the circumstances in which it is made.
In Korbetis v Transgrain Shipping BV, what did the court rule regarding improperly addressed letters?
The postal rule would not apply when a letter of acceptance was sent to the wrong number or address.
What was the ruling in Howell Securities v Hughes regarding the postal rule?
The postal rule was held not to apply where the offer was to be accepted by ‘notice in writing.’ Actual communication was required.
What is the first practical consequence of the postal rule?
Postal acceptance can take effect when it is posted even if it gets lost and never reaches the offeror.
This principle was established in Household Fire Insurance v Grant (1879).
What happens if acceptance is posted after the offeror posts revocation of the offer?
The acceptance will be binding if it is posted before the revocation has been received.
This was confirmed in Byrne & Co v Van Tienhoven & Co (1880).
Can an offeree revoke a postal acceptance by phone before it arrives?
It seems unlikely that an offeree could revoke a postal acceptance by phone before it arrives.
In Williams v Carwardine, what did the court state regarding the motive behind acceptance?
The motive was not material; acceptance may still be effective even if influenced by extraneous factors.
What is required for a person to accept an offer?
A person cannot accept an offer of which he has no knowledge.
What did the court rule in R v Clarke regarding acceptance without consideration of the offer?
There cannot be assent without knowledge of the offer; ignorance of the offer results in no effect.
To what communication does the postal rule apply?
The postal rule applies to communication of acceptance by cable including telegram, but not to instantaneous modes such as telephone, telex, and fax.
What was the outcome in Re London and Northern Rhodesia Bank regarding improperly posted letters?
The postal rule did not apply because the letter of acceptance was handed to a postman only authorized to deliver mail.
What is the general rule for the communication of acceptance?
Acceptance must be communicated to the offeror and is valid only when brought to the attention of the offeror.
What is the significance of the case Powell v Lee?
Acceptance must be communicated to the offeror by the offeree or someone authorized by the offeree.
What is the general rule regarding the terms of an acceptance?
The contract cannot be binding if the offeree does not accept all the terms of the offer.
What did the court hold in Tin v Hoffman regarding acceptance?
An order for 800 tons was not an acceptance of an offer to sell 1200 tons.
Can acceptance be made by conduct?
Yes, acceptance can be made by conduct as illustrated in Carlill v Carbolic Smoke Ball.
What was held in Percy Trentham Ltd v Archital Luxfer Ltd regarding contract conclusion?
A contract could be concluded by conduct.
What is an example of acceptance without matching the offer?
Brogden v Metropolitan Railway Co where the parties acted as if the contract had been formalized despite no formal agreement.
What is a counter offer?
A purported acceptance that introduces new terms is treated as a counter offer, which kills the original offer.
This was established in Northland Airlines Ltd v Dennis Ferranti Meters Ltd.
What happens in a counter offer situation?
The original offer is killed off and cannot be subsequently accepted by the offeree.
What is the definition of acceptance?
An acceptance is a final and unqualified expression of assent to the terms proposed by the offeror.
What must be proven for an offer to enter into legal relations?
There must be evidence from which the courts may infer an intention by the offeree to accept the offer.
