Acceptance

Question 1

What are the principles of acceptance?

Answer 1

Acceptance must be communicated
Acceptance can be inferred by conduct
Silence cannot amount to acceptance

Question 2

Broaden v Metropolitan Railway

Answer 2

Acceptance inferred by conduct

Question 3

Facts of Broaden v Metropolitan Railway

Answer 3

Brogden and D had formally exchanged coal for a number of years
Decided to contract this
D drew up contract
C amended it and sent it back
D did not acknowledge the amendments
A disputed arose and Brodgen refused to sell D coal

Question 4

Outcome of Broaden v Metropolitan Railway

Answer 4

Brogden claimed that the amendments amounted to a counter offer so there was never a contract
However, they had worked together for months. The courts inferred the acceptance by their conduct and that they worked together for so long before dispute

Question 5

Felthouse v Bindley

Answer 5

Silence cannot amount to acceptance

Question 6

Facts of Felthouse v Bindley

Answer 6

C was buying a horse from D
C said ‘if I hear no more from you the horse is mine’
D said nothing but asked the auctioneer to remove the horse from the auction to sell to C
Auctioneer forget and sold to a 3rd party

Question 7

Outcome of Felthouse v Bindley

Answer 7

Claim was unsuccessful. The acceptance had not been communicated, therefore there was no contract between the two and the 3rd party could keep the horse

Question 8

What are the exceptions to the main rule of communication?

Answer 8

Acceptance of unilateral offers don’t need to be communicated
Postal rule

Question 9

Carlill v Carbolic Smoke Company

Answer 9

Acceptance of unilateral offers doesn’t need to be communicated

Question 10

Explain how Carlill v Carbolic Smoke Company relates to this exception…

Answer 10

The courts held the because it is a unilateral offer which can be made to lots of people this waivers the need of communication of acceptance if the promise is fulfilled

Question 11

What is the postal rule?

Answer 11

Acceptance takes place when the letter is posted NOT when it’s delivered

Question 12

Adams v Lindsell

Answer 12

Where the postal rule originated from

Question 13

Where did the postal rule originate from?

Answer 13

Adams v Lindsell

Question 14

Facts of Adams v Lindsell

Answer 14

D posted an offer to sell some wool
C accepted the offer and immediately posted her response back
By the time D received it the wool had already been sold to a 3rd party

Question 15

Outcome of Adams v Lindsell

Answer 15

C claimed there had been a breach of contract and the court agreed.
They stayed acceptance is upon the letter being posted not delivered

Question 16

What rules govern the postal rule?

Answer 16

Offeror must have asked for response by post/it is the expected method
Must be clearly labelled and posted at a post office
If offer excludes post but is done so anyway there’s not acceptance

Question 17

Brinkibon v Stahag Stahl

Answer 17

Postal rule and modern day technology

Question 18

Facts of Brinkibon v Stahag Stahl

Answer 18

The acceptance was sent out of office hours (might want to find a bit more on this case)

Question 19

Outcome of Brinkibon v Stahag Stahl

Answer 19

If it is sent out of hours then acceptance will occur the next day (usually)
Lord Wilberforce stated that ‘no universal rule can apply, each must be assessed based on intention’