Discuss the extent to which the rules relating to acceptance and revocation of bilateral offers are in need of reform Flashcards
When is something an offer
An offer is the starting point for a contract. The offer must be definite in its terms words of uncertainty would constitute an invitation to treat.
When is something an offer or an invitation to treat
An invitation to treat is not an offer and therefore it cannot be accepted to make a contract. Advertisements are an invitation to treat.
What is a unilateral contract
A unilateral contract occurs where there is a promise to perform an obligation with no corresponding obligation on the other party to the contract to do anything typically this is a reward.
What is a bilateral contract
Each party in a bilateral contract must do something under the contract for example pay the price of goods
How does a court decide whether a contract is bilateral or not
The key points they have to examine are has an offer been made from one person to another and is it unambiguous or not
When does a letter of acceptance take effect
Acceptance takes place when the acceptance is communicated to the offeror. There are 3 ways of acceptance that need special attention: acceptance by conduct, acceptance by postal rules and electronic communication
What is special about acceptance by the postal rules
The postal rule means that a letter of acceptance takes effect from the moment it is posted as shown in Adams v Lindsell.
What is the exception to the postal rules
The exception to the postal rule is if it has been excluded by the parties as shown in Holwell Securities v Hughes
When does acceptance take place with electronic communication
Acceptance via this method takes effect when the acceptance is received as shown in Entores v Miles Far East corporation. And the exact time of acceptance is subject to sound business practice and the parties expectations as shown in Brinkibon v stahag stahl
When will the court try to find a bilateral offer
The court will try to find a bilateral offer if the offer is accepted immediately
What does the Felthouse v Blindley case state
It states that acceptance must be communicated
What is one of the rules about acceptance in a certain way
Where acceptance is required to be made in a certain way it will generally be sufficient if it is made in another way which does not disadvantage the offeror as shown in Manchester diocesan council v commercial and general investments
What are the rules for revocation of an offer
Revocation must be before acceptance is communicated as shown in Byrne v Van Tienhoven, Revocation can be carried out by a reliable third party as shown in Dickinson v Dodds and a promise not to revoke an offer isn’t binding unless consdieration has been given to keep the offer open also shown in Dickinson v Dodds.
What are some of the criticisms of the law for acceptance
- Postal rules made sense at the time but it now causes uncertainty when an acceptance takes place because the offeror may not be aware of acceptance
- Another criticism of the law is sound business practice varies from judge to judge and there is no clarity on it
- Rule of acceptance that it may be accepted in different means is far to vast
- when is a counter offer a counter offer and when is it an enquiry
What are some of the criticisms of the law for revocation
- Criticisms of revocation are that if the law for acceptance is unclear then it might be hard to implement revocation before the laws of acceptance
- The idea of a third party being able to revoke an offer which increases the likelihood of fraud there could also be uncertainty about who the third party should be
- a lot of people may not know that you need to offer consideration to keep the offer open
