Acceptance Flashcards
What constitutes acceptance of an offer?
Acceptance occurs when the offeree accepts the offer and communicates this via a prescribed form or other generally accepted forms such as letters, emails etc.
Acceptance by Conduct
Acceptance can be inferred from conduct without it being expressly communicated
Brogden v Metropolitan Railway Co (1877)
Counter-offers
A counteroffer will void the first offer and stand by itself.
Hyde v Wrench (1840)
Felthouse v Bindley (1862)
Silence cannot constitute acceptance on its own.
Communication of Acceptance in a Unilateral Contract
The rule that acceptance must be communicated is waived.
Offer can be accepted by fully performing the stipulated act as in Daulia Ltd v Four Millbank Nominees Ltd
No need to communicate acceptance of the offer as in Carlill v Carbolic Smoke Ball Co [1893] 1 QB 256
Offer can be withdrawn before it is accepted: the offer being accepted only by some performance.
Knowledge of the Offer
Gibbons v Proctor (1891)
Williams v Cawardine (1833)
Mere statements of price
Harvey v Facey
Where a party just states the minimum price they’d be willing to sell, this is an ITT rather than an offer.
Being unaware of an offer
Taylor v Laird
No party can be bound by an offer they are unaware of.
Prescribed Method of Acceptance
If the offeree uses a different method of acceptance than that is stipulated, then the acceptance will not generally be binding.
If the offeree uses an equally expeditious method to that which is stipulated, then that should be sufficient as in Tinn v Hoffmann.
Manchester Diocesan Council v Commercial Investments Ltd [1970] 1 WLR 241 – Acceptance communicated in another mode less advantageous will conclude the contract.
If the offer does not state a method of acceptance the required speed of acceptance can be deduced from the means by which the offer was sent.
Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013
Definitions of “consumer” and “trader” in reg 4
Definitions of “distance contract”, “off-premises contract” and “on-premises contract” (reg 5)
Information to be provided by the trader to the consumer prior to contract (Part 2, Chapter 1)
Additional information to be provided after contract is made (reg 8)
Consumer’s right to cancel the contract within 14 days (Part 3)
Photolibrary Group Ltd v Burda Senator [2008]
Delivery was offer, taking photos and using them was acceptance. Conduct was treated as acceptance since they were trading for a long time like this. Therefore when dispute arose concerning the last shot it was easily resolved.
Requesting to pay in instalments
If the offer is £1000 and a party asks to pay every month this is considered a request for further information.
