CONTRACT LAW L4 - Offer & Acceptance - ACCEPTANCE MUST BE COMMUNICATED

Question 1

What is the general rule in regards to acceptance? (3)

Answer 1

It must be communicated to the offeror and it applies from the moment it is communicated. Mental assent is not sufficient and the offeror may not stipulate that they will take silence to be acceptance and thus bind the offeree.

Question 2

Can a third party act on behalf of an offeree for acceptance? (1)

Answer 2

Yes but not without the authority of the offeree.

Question 3

What does the case of ADAM V LINDSELL demonstrate in terms of the postal rule? (2)

Answer 3

It held that where post is deemed to be a proper means of communication, the acceptance takes effect from the moment the letter is properly posted and not from the moment it is received by the offeror.
A letter is properly posted when it is put in an official letterbox or in the hands of a postal operative who is authorised to receive letters and not just deliver letters.

Question 4

When does the postal rule apply and not apply? (6)

Answer 4

It applies when the acceptance is delayed or lost in the post.
It does not apply if not contemplated post would be used, to letters revoking offers, if incorrectly addressed or if disapplied by the offeror.

Question 5

What does the postal rule mean in terms of if not contemplated post would be used? (1)

Answer 5

It has been held unreasonable to use the post when there is an implied condition that prompt acceptance is required.

Question 6

What does the postal rule mean in terms of disapplied by the offeror? (2)

Answer 6

The offeror might state in their offer that they require a receipt of acceptance and therefore oust the postal rule. A letter of acceptance would only be effective if and when it is received.

Question 7

What is the general rule when acceptance is made by an instantaneous mode of communication? (2)

Answer 7

Acceptance takes place at the moment the acceptance is received by the offeror ( email / telephone ) since the offeree ought to know when their message has been received and if it isn’t received by no fault of the offeror no contract has been concluded.

Question 8

What happens in terms of acceptance for unilateral contracts? (2)

Answer 8

The communication of acceptance is waived as the performance of an act required in an advert is sufficient itself to amount to an acceptance.