Acceptance

Question 1

Needs to be distinguished from a counter offer

Answer 1

Needs to be distinguished from a counter offer

Question 2

Hyde v Wrench

Answer 2

Tries to sell farm for 1000, come back with offer of 950, rejected, tried to take 1000.

Counter offer has same effect as rejection

Question 3

Requests for information

Stevenson, Jaqueline & co v McLean

Answer 3

Telegram was a request for information

An offer still survives

Question 4

Cross offers

Tin v Hofferman

Answer 4

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.

Question 5

Battle of the forms

Explain

Answer 5

2 business negotiating, want to contract on own terms.

Question 6

How to tackle battle of forms situation

3

Answer 6

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)

Question 7

Butler Machine Tool v Ex-Cell-O

Answer 7

‘Last shot’

Sent final offer which was accepted

Question 8

Sterling hydraulics v Dichtomatik

Answer 8

Last shot rejected, first shot prevailed.

Initial order stating the desired material was acknowledged by D

Question 9

Acceptance by conduct

Case?

Answer 9

Carhill

Offeror states the need for communication

Rejected by courts

Think of a missing dog post

Question 10

Brogden v Metropolitan Railway

Answer 10

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.

Question 11

Acceptance by silence

Answer 11

No allowed. Saves burden of having to reply.

Question 12

Felthouse v Bindley

Answer 12

Offer made. “If I don’t hear from you I believe a contract is made”.

Courts ruled no contract made.

Acceptance must be communicated

Question 13

Postal rule

Adams v Lindsell

Answer 13

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

Question 14

Holwell securities v Hughes

Answer 14

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.

Question 15

What is the postal rule?

Answer 15

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.

Question 16

Postal rule does not apply if;

Answer 16

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

Question 17

Instantaneous communications

Entries v Miles Far East Corporation

Answer 17

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

Question 18

Tenax Steamship Co v Motor Vessel Brimnes

Answer 18

Instantaneous communications. Communication of withdrawal of an offer is effective when COULD be read not when it is in fact.

Question 19

Schelda Delta Shipping V Astarte Shipping

Answer 19

If instantaneous communications arrives outside of business hours, it comes into effect once they re open.

Question 20

Thomas v BPE Solicitors

Email

Answer 20

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

Question 21

How are unilateral contracts accepted

Answer 21

By performance, not need for expression of agreement

Question 22

Example of a unilateral agreement

Answer 22

Missing dog poster with reward

Question 23

Unilateral contract

Errington v Errington

Answer 23

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.

Question 24

Daulia v Four Millbank Nominees

Unilateral contracts

Answer 24

Until performance the offeror can revoke the offer he has made at any time.