ACCEPTANCE Flashcards
Acceptance is…
‘A final and unqualified expression of assent to the terms of an offer’ - Professor Treital
- May be express or implied (by words or conduct)
- Must be aware of the offer
- Acceptance must correspond with the offer
- Acceptance must be communicated to offeror
ACCEPTANCE BY WORDS… (cases and facts)
- A counter offer will bring the original offer to an end - thus making it incapable of acceptance. It is a new offer in itself (HYDE V WRENCH)
- A request for more information does not question the offer or replace it with a counter offer (STEVENSON JACQUES CO V MCCLEAN)
Battle of the forms:
1) delivery of the transparencies with a delivery note (offer)
2) Receipt and use of the transparencies = acceptance
^ PHOTOLIBRARY V BURDA
ACCEPTANCE BY CONDUCT… (cases and facts)
BROGDEN V METROPOLITAN RAILWAY =
They had supplied coal for years, but finally entered into a contract - D put it in drawer and did not read - court agreed putting it in the drawer did not provide acceptance - but - continuing to do so business was acceptance.
COMMUNICATION OF ACCEPTANCE… (facts and cases)
It requires some external manifestation of assent.
Silence?
FELTHOUSE V BINDLEY =
Selling a horse, uncle said if he did not hear anything he will take that as acceptance, nephew did not reply, uncle sued auctioneer as auctioneer did not take it out the auction like the nephew had told him to. Case failed - even though nephew had the intention, in law he had not communicated that intention.
PRESCRIBED METHOD OF ACCEPTANCE… (facts and cases)
TINN V HOFFMAN =
‘by return of post’ does not mean exclusively a reply by return of post. You may reply by telegram, verbal message or any means not later than a written letter and sent by post’ - Per Honeyman
MANCHESTER COUNCIL OF EDUCATION V COMMERCIAL AND GENERAL INVESTMENTS =
“the person whose tender is accepted shall be informed of the acceptance of his tender by a letter in the post - addressed to the address given in the tender”
THE POSTAL RULE
ADAMS V LINDSELL =
D made offer to sell wool to plaintiff, put offer in post, went astray and not received for several days. They posted acceptance letter straight away, but it got lost. D’s thought they weren’t interested, and sold wool to someone else.
Court held that the contract was concluded when the letter was posted.
LIMITS TO POSTAL RULE
1) where it is unreasonable to use the post as a means of communicating acceptance
2) where to use the post would be absurd
3) where the letter is not correctly addressed/stamped
4) where the offeror has stated that acceptance will only occur when they have receipt of the acceptance.
(HOLWELL SECURITIES V HUGHES)
POSTAL RULE AND THE INTERNET
2 approaches:
1) the postal rule analogy i.e acceptance occurs at the moment the message is sent.
2) the receipt analogy i.e acceptance occurs on the actual receipt of communication.
WHAT IS OFFER HAS BEEN WITHDRAWN?
An offer may be withdrawn at any time before acceptance has occurred. BUT the postal rule?
BYRNE V VAN TIENHOVEN =
Plaintiff accepted offer straight away. Withdrawal not effective until communicated to offeree - this came after acceptance. Acceptance occurred when acceptance was sent by telegram.
- Must be at a reasonable time:
BRINKIBON LTD =
it was sent at 10pm and not seen until the next day. No acceptance until it has been seen.
ACCEPTANCE IN UNILATERAL CONTRACTS
CARLIL V CARBOLIC SMOKEBALL =
Performance of the required act is acceptance.
- Must have knowledge of the offer in order to accept (GIBBONS V PROCTOR)
If the act takes time to perform when does acceptance occur?
ERRINGTON V ERRINGTON =
10 years into paying off mortgage, once performance has started and is continuing to be performed, the offer cannot be revoked - even though acceptance has not occurred yet. As long as they continue to pay, it can’t be taken away - not bound or accepted until it is fully paid but they cannot withdraw the offer.
TERMINATION OF OFFERS
It can be withdrawn before acceptance apart from unilateral contracts.
Death, rejection or counter-offer brings it to an end.
Revocation (withdrawing):
Payne v Cave
Any revocation must be communicated - postal rule only applied in limited circumstances to acceptances, not revocations in the post.
The law does not require that this be done personally, by the offeror themselves, the offeree must know the offer has been withdrawn - DICKINSON V DODDS
An offer may come to an end by:
1) Lapse of time - RAMSGATE VICTORIA HOTEL CO V MONTEFIORE (5 months was unreasonable)
2) Where the offer is conditional - offer will come to an end if the condition does not occur (FINANCINGS LTD V STIMSON)
3) Death - BRADBURY V MORGAN
4) Rejection/counter offer.
