Acceptance must be Communicated Flashcards
When is acceptance of an offer generally effective?
A) When it is communicated to the offeror
B) When the offeree decides to accept in their mind
C) When the offeree performs an action that suggests acceptance
D) When the offeror assumes acceptance has been given
A) When it is communicated to the offeror
Explanation:
Acceptance must be communicated to be effective. Mere mental assent is not sufficient (Entores v Miles Far East Corporation 1955).
Can silence be considered acceptance?
A) Yes, if the offeree remains silent after receiving the offer
B) No, unless the offeree has previously agreed that silence constitutes acceptance
C) Yes, if the offeror specifies that silence means acceptance
D) No, under any circumstances
B) No, unless the offeree has previously agreed that silence constitutes acceptance
Explanation:
The general rule is that silence is not acceptance, but in exceptional cases where an offeree agrees in advance that silence will be acceptance, a contract may be formed (Felthouse v Bindley 1862).
When does the postal rule NOT apply?
A) When the letter of acceptance is delayed in the post
B) When the letter of acceptance is lost in the post
C) When the offer states that acceptance must be received to be valid
D) When the acceptance is sent by email instead of post
C) When the offer states that acceptance must be received to be valid
Explanation:
The offeror can exclude the postal rule by requiring actual receipt of acceptance (Holwell Securities v Hughes 1974).
According to the postal rule, when is acceptance effective?
A) When the letter of acceptance is received by the offeror
B) When the letter of acceptance is posted
C) When the offeree mentally decides to accept
D) When the offeror acknowledges receipt of acceptance
B) When the letter of acceptance is posted
Explanation:
Under the postal rule, acceptance is effective when posted, even if delayed or lost (Adams v Lindsell 1818).
Laura posts a letter accepting an offer. Before the letter arrives, the offeror calls her to revoke the offer. Is there a valid contract?
A) No, because the revocation was communicated before the letter arrived
B) Yes, because acceptance was effective upon posting
C) No, because Laura did not respond immediately
D) Yes, but only if the letter was received before the revocation was communicated
B) Yes, because acceptance was effective upon posting
Explanation:
Under the postal rule, acceptance is valid when posted, even if the revocation is communicated before the letter arrives (Adams v Lindsell 1818).
Paul offers to sell his car to Sarah. Before Sarah responds, Paul’s friend tells him that Sarah has accepted the offer. Has a contract been formed?
A) No, because the offeror must receive acceptance directly from the offeree
B) Yes, because communication from a third party is sufficient
C) Yes, because Sarah intended to accept the offer
D) No, because Sarah has not performed an act of acceptance
A) No, because the offeror must receive acceptance directly from the offeree
Explanation:
Acceptance must be communicated by the offeree or an authorised third party. If the third party is not authorised, there is no valid acceptance.
David sends an acceptance email to a job offer after business hours on Friday. The employer reads it on Monday morning. When is acceptance effective?
A) On Friday when the email was sent
B) On Monday when the employer reads it
C) On Saturday, the next calendar day
D) On Sunday, since it was a weekend
B) On Monday when the employer reads it
Explanation:
For instantaneous communications, acceptance is effective upon receipt during business hours (Entores v Miles Far East Corporation 1955).
Tom sends an acceptance letter, but he writes the wrong address, causing a delay. When is acceptance effective?
A) When it is sent, as the postal rule always applies
B) When the offeror eventually receives the letter
C) When the letter is re-sent correctly
D) The acceptance is invalid due to the offeree’s mistake
D) The acceptance is invalid due to the offeree’s mistake
Explanation:
The postal rule does not apply if the offeree incorrectly addresses the letter (LJ Korbetis v Transgrain Shipping 2005).
A shop advertises “50% off all electronics for today only!” A customer picks up a laptop and goes to the counter, but the shop refuses to honour the discount. Can the customer enforce the offer?
A) No, because advertisements are invitations to treat
B) Yes, because the shop made a legally binding offer
C) No, because the customer did not communicate acceptance
D) Yes, because consumer protection laws require businesses to honour advertised offers
A) No, because advertisements are invitations to treat
Explanation:
Advertisements are generally not offers, but invitations to treat (Partridge v Crittenden 1968).
Anna sees an online advert offering a reward for finding a lost cat. She finds and returns the cat, but the owner refuses to pay. Can she enforce the contract?
A) No, because she did not notify the owner before performing the act
B) Yes, because unilateral offers do not require prior communication of acceptance
C) No, because advertisements are invitations to treat
D) Yes, but only if she sent an acceptance email before returning the cat
B) Yes, because unilateral offers do not require prior communication of acceptance
Explanation:
In unilateral contracts, acceptance is completed by performing the required act, not by notifying the offeror (Carlill v Carbolic Smoke Ball Co 1893).
