Agreement (Acceptance)

Question 1

What are the rules of acceptance?

Answer 1

• Acceptance must be unqualified (all terms must be accepted)
• Acceptance must be communicated with the offeror.

Question 2

Felthouse v Bindley

Answer 2

• Discussions about the purchase of a horse. The final letter from the offeror: ‘If I hear no more, consider the horse mine.’ There was no further discussions.
• No contract as the offer couldn’t be accepted by silence.

Question 3

The postal rule

Answer 3

Acceptance by the post takes place as soon as the letter is posted.

Question 4

Adams v Lindsell

Answer 4

• Offered to sell wool through a letter asking for a reply. Letter was delayed. Adams posted the letter of acceptance the same day. Due to the delay, Lindsell sold the wool to someone else.
• Was a valid contract because acceptance took place as soon as the letter was placed in the post box and had not discussed revocation

Question 5

The postal rule only applies if what 3 requirements are satisfied?

Answer 5

.- If post is the usual / expected means of communication.
- Properly addressed and stamped
- Offeree must be able to prove it was posted

Question 6

Brinkibon v Stahag Stahl

Answer 6

• C was buying from D in Austria. C sent their acceptance by Telex which was to the Defendants in Vienna. C wanted to sue Stahag Stahl for a breach of contract.

Question 7

Thomas V BPE Solicitors

Answer 7

• Acceptance sent by e-mail by offeree’s solicitor to the offeror’s solicitor. Offeror’s solicitor did not read it at the time as he has gone home. Offeree’s solicitors didn’t realise and assumed it had been read. It wasn’t read until after the weekend.
• Held that the e-mail took affect at 6pm on Friday (when sent) and he could be expected to read it by that point.

Question 8

The method of acceptance can be another method that is equally beneficial for the offeror.

Answer 8

Yates v Pulleyn