Communication of Acceptance (L6)

Question 1

What is the communication rule of acceptance via instantaneous modes?

Answer 1

Acceptance must be received and understood.

Entores v Miles Far East Corporation [1955].
- Onus is on the acceptor to make sure the offeror has heard and understood the acceptance.

Question 2

What is the communication rule of acceptance via NON-instantaneous modes?

Answer 2

From the moment of sending (not receipt).

Dunlop, Wilson & Co v Higgins & Son (1848).
- THE POSTAL RULE.

Question 3

What did Thomson v James (1885) tell us?

Answer 3

Postal rule only applies to acceptances.

Question 4

What did Jacobsen, Sons & Co v Underwood & Son Ltd (1894) tell us?

Answer 4

Held that an acceptance posted within a time limit set by an offer but arriving with the offeror after the limit’s expiry nonetheless concluded a contract between the parties.

Question 5

What did Mason v Benhar Coal Co (1882) tell us?

Answer 5

There may be a delay but acceptance MUST arrive for a contract to exist.

Question 6

To which modes of communication do the postal rule apply?

Answer 6

Telegrams? YES.

Private delivery firms/couriers? YES.

Fax? NO.
- Burnley v Alford; Park Petitioners [2009] CSOH 122.

Text? NO.

Email/WhatsApp/DMs? Debatable.
- Thomas v BPE Solicitors [2010].
‘The principle that an acceptance is effective on receipt … applies to communication by email.’ at [89].

Question 7

Can an acceptance be withdrawn?

Answer 7

Countess of Dunmore v Alexander (1830) 9 S 190.
- Writes to accept an offer but then rejects it. Both letters arrive on the same day.
- Held that it cancels out and rather than being an acceptance, is a rejection.

Question 8

What does the case of Supaseal Glass Ltd v Inverclyde Windows Mfg Ltd [2022] CSOH 49 tell us about contract formation?

Answer 8

Writing is not required.
The question of whether agreement had been reached should be judged objectively.
There must be agreement on the essential terms.
Not void from uncertainty.