Acceptance Flashcards
Needs to be distinguished from a counter offer
Needs to be distinguished from a counter offer
Hyde v Wrench
Tries to sell farm for 1000, come back with offer of 950, rejected, tried to take 1000.
Counter offer has same effect as rejection
Requests for information
Stevenson, Jaqueline & co v McLean
Telegram was a request for information
An offer still survives
Cross offers
Tin v Hofferman
H wrote to T an offer. T wrote to H a similar offer on the same day neither with knowledge of the other.
Coincide of minds, not a binding contract.
Battle of the forms
Explain
2 business negotiating, want to contract on own terms.
How to tackle battle of forms situation
3
1) contract decided on in terms of party who put forward terms first
2) on terms of party who’s form was put forward last
3) no contract due to clash
Usually decided on last shot (2)
Butler Machine Tool v Ex-Cell-O
‘Last shot’
Sent final offer which was accepted
Sterling hydraulics v Dichtomatik
Last shot rejected, first shot prevailed.
Initial order stating the desired material was acknowledged by D
Acceptance by conduct
Case?
Carhill
Offeror states the need for communication
Rejected by courts
Think of a missing dog post
Brogden v Metropolitan Railway
B supplied M with coal. For years had no contract. Thought it best to write one up, amended etc. Put in a draw without acceptance. Supplying continued. Issue arose. Was there a contract?
Yes acceptance by conduct.
Acceptance by silence
No allowed. Saves burden of having to reply.
Felthouse v Bindley
Offer made. “If I don’t hear from you I believe a contract is made”.
Courts ruled no contract made.
Acceptance must be communicated
Postal rule
Adams v Lindsell
Delay in post cause offeror to believe there wasn’t interest in his offer.
Contract came into effect once the acceptance letter was placed in the letter box
Holwell securities v Hughes
Attempt to get around postal rule
Hughes gave HS the option to buy his house. The acceptance letter got lost in the post. He stated in his offer he stated he required notice so there was no contract.
What is the postal rule?
Contract made once a letter of acceptance is posted.
Can cause hardships- household fire and artiste v Grant, however necessary more difficult not to have the rule.
Postal rule does not apply if;
1) use of post was ruled out by offeror
2) offeree should have known post was inappropriate (case of strike)
3) offeree is at fault (posts to wrong address)
4) communication is instantaneous
Instantaneous communications
Entries v Miles Far East Corporation
Contract formed when acceptance arrives in regards to instantaneous communications, telex, fax etc
Think of two men shouting over a river and an airplanes goes by
Tenax Steamship Co v Motor Vessel Brimnes
Instantaneous communications. Communication of withdrawal of an offer is effective when COULD be read not when it is in fact.
Schelda Delta Shipping V Astarte Shipping
If instantaneous communications arrives outside of business hours, it comes into effect once they re open.
Thomas v BPE Solicitors
Email sent at 18:00 before bank holiday
Postal rule shouldn’t apply
Email effective from the moment it would reasonably expected to be read
How are unilateral contracts accepted
By performance, not need for expression of agreement
Example of a unilateral agreement
Missing dog poster with reward
Unilateral contract
Errington v Errington
Newly weds to make payments and when in full father would give them the house. They split up.
Offer could not be withdraw. It was a unilateral contractual promise. Only if they left it incomplete would it cease to bind him.
Daulia v Four Millbank Nominees
Unilateral contracts
Until performance the offeror can revoke the offer he has made at any time.
