Acceptance Flashcards
Butler Machine Tool v Ex-cell corporation
- C the sellers offered to sell a machine to D the buyers and included terms
- D replied with different terms and conditions
- Buyers tried to invoke one of their terms after C had acknowledged
- who’s terms allied?
Judgment: For defendant
L.P: •Battle of the forms: sellers made an offer then buyers made a counter offer which was accepted by C
•Lord denning critiqued traditional offer/ acceptance model
Hyde v Wrench
Facts: • D offered to sell farm to C for £1000
• C Offered to buy farm for £950
• D refused and C wrote stating he accepts to buy for £1000
• D had already sold farm on and C sued for breach of contract
Judgment: For defendant
L.P: •As soon as a counter offer is made original offer is destroyed
• Stops businesses having best of both worlds
Stevenson, Jaques + Co v McLean
Facts: • D possessed warrants for iron and was about to get an offer from C for them
• D wrote to C offering £40 for the iron and the offer would stay open till Monday
• On Monday C telegraphed D with s different offer
•Before the telegram was read D had sold the warrants on
Judgment: For Claimant
L.P: • C’s letter was not a counter offer but merely a request for information
• Original offer still stood
RTS Flexible Systems
Facts: • C negotiated with D to design and install production lines
• D sent a letter of intent setting out draft contract with a clause stating it required signatures of both parties
• Following completion C did not receive full payment and a dispute arose.
• D refused to pay anymore
Judgment: For claimant
L.P: • Didn’t require signature, acceptance through conduct had occurred
Transformers v Needs
Facts: • Contract concerned two business partners with a history of relations
Judgment: no contract
L.P: • problems with both contracts so judge held neither contract applied
Felthouse v Bindley
Facts: • Uncle wrote to nephew offering to buy a horse and stated “if I hear no more I will consider him mine”
• Nephew sold the horse to a third party
Judgment: No contract
L.P: •Silence does not constitute valid acceptance
