Acceptance - Topic 2

Question 1

What does Acceptance mean?

Answer 1

Unqualified (cannot change terms of offer) assent to the terms of an offer. OBJECTIVE test prevails

Question 2

Does the Objective test prevail?

Answer 2

Yes

Question 3

What is an exception to Acceptance?

Answer 3

Unilateral contracts –> ‘act must be done IN RESPONSE to an offer’
e.g. Person returns a lost dog and later learns the reward offered by owner –> can the finder claim the reward?
NOT ENTITLED b/c acceptance must be done in response to the offer

Question 4

How should acceptance be communicated?

Answer 4

Communicated to the offeror by offeree in any reasonable way unless a particular method of acceptance is prescribed by offeror

Question 5

What are the 2 exceptions where the communication is limited?

Answer 5

Acceptance inferred from conduct

Offeror may dispense w need to communicate acceptance

Question 6

What is the general rule of acceptane?

Answer 6

• Communication of acceptance is effective when and where it is received by the offeror

Question 7

What are the 2 exemptions to the general rule for acceptance?

Answer 7

1. Post acceptance rule = acceptance occurs when letter posted e.g. post, email
2. Electronic Transactions Act =
   –> s13 = only relevant if we had to apply the PA rule
   - If electronic address has been designated by addressee, means becomes capable of being retrieved by the addressee
   Not apply under the CISG (general rule applies)

Question 8

Will acceptance be inferred by silence and conduct?

Answer 8

• Acceptance may not be inferred from silence BUT
• silence + conduct may amount to acceptance

Question 9

What if the conditions change?

Answer 9

• Acceptance must correspond WITH offer –> if offeree attempts to vary terms, this means that it is a ‘counter offer’ and the OG offer is terminated

Question 10

What are discrepancies b/w offer and acceptance?

Answer 10

1. Reply to an offer w additions, limitations or modifications is a REJECTION and a counter-offer
2. Reply to an offer which purports to be an acceptance but contains additional terms which do NOT materially alter the terms of the offer constitutes as an acceptance UNLESS the offeror objects orally
3. Additional or different terms relating, to the price, payment, quality and quantity of the goods, place and time of delivery extent of one party’s liability to the other or the settlement of disputes are considered to alter the terms

Question 11

What if Buyer and Seller’s terms conflict?

Answer 11

• No contract
• Acceptance by conduct
• Non contractual relief available