Acceptance Flashcards
Acceptance Definition
“The final expression of assent to the terms of an offer”
Felthouse v Bindley
- Acceptance must be communicated
Acceptance by Conduct - Cases
“Acceptance has no effect unless communicated”
Carlill v Carbolic Smokeball Co.Ltd
Lefkowitz v GMS
Brogden v Metropolitan Railway Co.Ltd
Carlill v Carbolic Smokeball Co.Ltd - Unilateral Offer
Lefkowitz v GMS - Unilateral Offer
- Did not have to communicate acceptance, with unilateral offers a person just needs to carry out the terms demanded
Brogden v Metropolitan Railway Co.Ltd - Bilateral Offer
- MRC sent a draft contract - Offer
- Brogden added name of arbitrator - Counter Offer - And returned the draft
- No Mirror image (Where the performance does not reflect the terms of the contract) as there was a counter offer
- MRC placed draft in drawer
- MRC orders coal and Brogden supplied coal following draft and MRC took delivery - Acceptance by conduct
- Brogden claimed he was not bound by contract
- There was a contract and Brogden was bound
Effect of a Counter offer cases
Hyde v Wrench
Stevenson v Mclean
Butler Machine tool Co.Ltd v Ex-Cell - O Corp
Hyde v Wrench
An implied rejection of an offer occurs when a counter offer is made
Stevenson v Mclean
- Request for information is not a counter offer
- Acceptance of original offer is valid as it is not destroyed
- Therefore there is a contract
Butler Machine tool Co.Ltd v Ex-Cell-O Corp (Battle of Forms)
- Buyers made enquiry, sellers quoted £75,535
- Included 10 month delivery with a Price Variation Clause
- A counter offer was made with no PVC
- No mirror image
- Acceptance was communicated
- Buyers entered into accordance with sellers quotation
- Upon delivery the machine cost £2892 more
This case decides:
- using different terms the buyers made a counter offer, which was expressly accepted by the sellers when the completed and returned the acknowledgement slip stating that they accepted the buyers’ order on the terms and conditions of the buyer
