Contract Law - Acceptance Flashcards
What are the different terms that an acceptance must have in order to be bound to the offer?
1) A mirror image of the offer
2) Unconditional
3) Reasonable expectation of honest men - where acceptance is disputed but performance has already begun the court is inclines to apply the criterion of reasonable expectation.
4) Communicated to the offeror
5) The offeror cannot waive the communication rule in a bilateral offer the silence of the offeree cannot be acceptance
6) The offeror may expressly require a particular method of communication
7) In a unilateral offer its indicated that the offeror does not require notification of acceptance of the offer
What happened in the Neale v Merrett (1930) case and what is it an example of?
An example of a mirror image of the offer
One party offered to sell the property for a £280 lump sum. The other party accepted by sending £80 and promising to pay the remained in monthly instalments. This was ineffective as the offeree had not accepted the original offer.
What are the rules that need to be considered when communication to the offeror is made?
1) Communication is only effective if made by an authorised person
2) The methods of communication - Conduct, Verbal communication, Electronic communications, The postal rule
What happened in the Powell v Lee (1908) case and what is it an example of?
An example of communication is only effective if made by an authorised person
The claimant was told by a member of the appointment board that he had been successful in his job application. However, the job was given to someone else. It was held that because the person who communicated this to the claimant was not authorised to do so, it was not seen as effective communication and he failed his case.
What happened in the Brogden v Metropolitan Railway Co (1877) case and what is it an example of?
An example of conduct
Brogdon had been supplying coal to the railway company for some years. The company suggested that they should form a new contract and sent a draft to Brogdon, who added a few terms of their own, then marked it and sent the signed form back. The parties then continued to trade.
It was held that the contract sent to Brogdon had been accepted by conduct. The contract sent by Brogdon was a counteroffer, which was accepted by the company when hey placed an order.
What happened in the Confetti Records v Warner Music UK (2003) case and what is it an example of?
An example of conduct
The sending of an invoice together with a music track was deemed to be an offer by Confetti to sell the material to Warner to be marketed. By producing an album containing the track Warner accepted the offer.
What happened in the Byrne v Van Tienhoven (1880) case and what is it an example of?
An example of the postal rule
1st October the defendant posted an offer from Cardiff to the claimant in New York.
8th October the defendant changed his mind and posted a letter of revocation.
11th October the defendant’s offer arrived
15th October the claimant confirmed his acceptance
20th October the revocation letter arrived
It was held that the contract had been formed on the 11th October. The revocation was only effective when it had arrived in New York after the acceptance had been sent.
What happened in the Holwell Securities v Hughes (1974) case and what is it an example of?
An example of the postal rule
The offeror granted an option to the offeree concerning the purchase of some land, which had to be exercised by ‘notice in writing’. The claimants letter of acceptance was posted before the deadline but arrived after the deadline expired.
It was held that there was no contract as the postal rule had be excluded by the offeror.
What happened in the Felthouse V Bindley (1862) case and what is it an example of ?
An example of the offeror cannot waive the communications rule
The claimant offered to buy a horse and said that he would assume the seller agrees unless he hears differently.
The seller intended to accept and asked the horse to be withdrawn from an auction - but it was sold by mistake.
The claimant sued but it fell through as he was not the owner of the horse - as the seller hadn’t communicated his acceptance he still owned the horse.
What are the two exceptions to the rule that acceptance must be communicated?
The rule on unilateral contracts and the postal rule
What are the different methods of communication?
Conduct
Verbal communication
Electronic communications
The postal rule
