Agreement II

Question 1

Boulton v Jones (1857)

Answer 1

Where an offer is made to a particular person or group of persons, no valid acceptance may be made by a person who is not an offeree.

Question 2

R v Clarke (1927)

Answer 2

An offer is not ‘accepted’ by doing the required act in ignorance of the offer. To create a contract, parties must reach agreement: it is not enough that their actions happen to coincide.

Question 3

Williams v Carwardine (1833)

Answer 3

As long as there is evidence of the requisite knowledge (of the offer), it matters not that the act is performed for an entirely different motive which is quite unconnected with the terms of the offer.

Question 4

Lancaster v Walsh (1838)

Answer 4

In cases where a reward has been offered in return for information, the only person entitled to the reward is the individual who first gave that information, even though the offer was made to the public and multiple people came forward to give the information.

Question 5

Hyde v Wrench (1840)

Answer 5

Acceptance must be unqualified. In this instance, a counter-offer was made which cancelled the original offer. Sometimes referred to as the ‘mirror image’ rule.

Question 6

Manchester Diocesan Council for Education v Commercial and General Investments (1970)

Answer 6

It is possible for an offeror to prescribe a mode of acceptance, but, if he wants this mode to be mandatory he must explicitly rule out all other methods. If the offeror does not expressly exclude the use of other modes of acceptance, any method of acceptance which is no less advantageous to the offeror will be a permitted mode of acceptance.

Question 7

Yates Building Co. Ltd v Pulleyn & Sons (York) Ltd

Answer 7

If the method was prescribed for the benefit of the offeree, the offeree can waive a stipulation for his benefit and use an alternative mode, provided the alternative method does not disadvantage the offeror.

Question 8

Felthouse v Bindley (1862)

Answer 8

Silence cannot constitute acceptance.

Question 9

Powell v Lee (1908)

Answer 9

A third party can validly accept an offer on behalf of the offeree, provided that he is authorised by the offeree to do so, and the acceptance indicates an intention to be irrevocably bound.

Question 10

What are three exceptions to the general rule that acceptance must be communicated?

Answer 10

1. In response to a unilateral offer.
2. In regard to the postal rule.
3. If an acceptance, sent by an instantaneous method, is not received due to the offeror’s fault, he will be estopped from denying receipt.

Question 11

Adams and Lindsell (1818)

Answer 11

Established the postal rule.

Question 12

Household Fire v Grant (1879)

Answer 12

The postal rule will still operate when letters are delayed or, indeed, never arrive at their destination.

Question 13

Henthorn v Fraser (1892)

Answer 13

The postal rule will only apply when it is reasonable to use the post, having regard to all the circumstances of the case.

Question 14

Holwell Securities v Hughes (1974)

Answer 14

Ousting the postal rule - the postal rule will not apply if the offeror specifies that the acceptance will only be binding when it reaches him.

Question 15

Entores v Miles Far East Corporation (1955)

Answer 15

In regard to instantaneous communications,

1. The general rule is that acceptance must be communicated in order to be effective.
2. If the acceptance is not communicated through the fault of the offeree, there will be no contract.
3. If the acceptance is not communicated through the fault of the offeror, he will be estopped from denying that the acceptance was received and there will be no contract.
4. If the acceptance is not communicated and there is no fault on the part of either party, there will be no contract.

Question 16

Tenax Steamship Co. Ltd v The Brimnes (1975)

Answer 16

The acceptance was effective as soon as it was received, because the message was sent within ‘office hours’.

Question 17

Mondial Shipping v Astarte Shipping

Answer 17

In this case, the acceptance was not effective until the next working day because the message was sent outside of office hours.

Question 18

Thomas v BPE Solicitors (2010)

Answer 18

Email is a form of instantaneous communication, and therefore, the postal rule is not applicable.