Communication of an Offer/Revocation of an Offer - Case Law Flashcards
Taylor v Laird (1856)
Offer must be communicated for it to be capable of acceptance
Ship’s captain resigned in a foreign port. He helped crew the ship home, however his demand for payment was rejected because his “offer” to man the ship had not been communicated to the owners.
Hyde v Wrench (1840)
Counter Offer
Counter offers have the effect of rejecting the original offer made.
Offer to sell land for £1,000
Offeree said they would pay £950, this was rejected.
Offeree said they were then willing to pay the full £1,000.
Court held that the original offer had been destroyed because of the counter offer.
Stevenson Jacques & Co Ltd v McLean (1880)
Request for Further Information
A request for further information is not a counter offer which would have the effect of terminating the offer.
Request for information regarding accepting payment terms
Butler Machine Tool Co Ltd v Ex-Cell O Corporation Ltd (1979)
Battle of the forms
Entores v Miles Far East Corporation (1955)
Upheld in Brinkibon Ltd v Stahag Stahl GmbH (1983)
Communication of Acceptance - Acceptance must be heard by the offeror.
Felthouse v Bindley (1862)
Silence does not amount to acceptance.
D selling animals and C offered £30.
C stated “if I hear no more, I shall consider the horse mine at £30”
D sold the animals via auction. C said this was a mistake as he had bought the horse.
Court held that there was no contract between C and D because acceptance had not be communicated.
Adams v Linsell (1818)
The “Postal Rule”
The postal rule means that a postal acceptance is deemed communicated as soon as it is placed in the post, not when it is received.
D made offer to sell wool to C.
Offer could only be accepted by a postal reply.
D misaddressed the letter, so it was not delivered until three days later.
Same day, C posted an acceptance of the offer (5 September); this was received by D on 9 September.
However, on 8 September, D had sold the wool to another party.
Held there was a binding contract because the contract was formed on the 5 September when the acceptance was posted.
Chwee Kin Keong v Digilandmall.com (2005) – Singapore High Court
Acceptance by email
The general rule is that an email will be treated as being received so long as it is correctly addressed.
Emails are treated as received when they arrive, not when they are read by the recipient.
Pickfords Ltd v Celestica Ltd (2003)
Revocation of an offer
Can be done at anytime prior to acceptance.
Making a second offer will impliedly revoke the first offer.
Byrne v Van Tienhoven (1880)
Communication of Revocation
Offer must be revoked and communicated prior to acceptance.
Shuey v United States (1875)
Revocation of unilateral contracts
One must take reasonable steps to revoke a unilateral contract.
Errington v Errington and Woods (1952)
Revocation of a unilateral contract - hardship rules
The courts have fund that it may be unjust to revoke a contract where one party has attempted performance, which can therefore lead to the power to revoke being lost.
Father bought house for son/daughter to live in.
House was in fathers name, but said he would transfer it to them if they paid the mortgage.
Father died.
Son/Daughter separated, but daughter remained in house and paid the mortgage.
Court found that so long as the daughter continued to pay the mortgage, the father’s promise was irrevocable.
Ramsgate Victoria Hotel Ltd v Montefiore (1866)
Revocation of offer by lapse of time
D offered to buy shares in C in June, but heard nothing further about his offer.
C allotted shares to D in November.
D refused the shares, however his offer had not been withdrawn.
Court held that the offer had been revoked due to the lapse of time and the offer not being accepted in a reasonable period.
Financings Ltd v Stimson (1962)
Revocation due to Failure of a Condition Precedent
Offer must be communicated for acceptance to take place
Taylor v Laird (1856)
