FORMATION; ACCEPTANCE

Question 1

Define acceptance. (1)

Answer 1

a valid acceptance is a statement of intention to be bound absolutely and unconditionally by the terms of the offer by either words or conduct.

Question 2

what must an acceptance be in order to be valid? (1)

Answer 2

the response to an offer must be a valid acceptance rather than any other response and that it is communicated effectively.

Question 3

what are the rules of acceptance? (2)

Answer 3

must be absolute and communicated where notification is specifically required, it should mirror the offer and be unconditional.

Question 4

what is an example of a unilateral contract being accepted via conduct? (1)

Answer 4

Carlill v Carbolic smokeball co (1893)

Question 5

what case amount to small amount of conduct? (1)

Answer 5

Daulia ltd v four Millbank nominees ltd (1978)

Question 6

what act covers unsolicited goods? (2)

Answer 6

unsolicited goods and services act (1971) and consumer protection (distance selling) regs (2000) - if goods are sent unsolicited may be received as a gift or, the seller may be requested to collect.

Question 7

what case covers implication of acceptance? (1)

Answer 7

Brogden v metropolitan co (1877)

Question 8

what is the mirror rule? (1)

Answer 8

acceptance must fit the terms of the offer exactly, there is no requirement that it has to be in the same format as the offer, so if it came by email you can text as way of acceptance.

Question 9

what case covers wavering requirements? (1)

Answer 9

Yates v Pulleyn (1975)

Question 10

what is meant by prescribed acceptance? (1)

Answer 10

there is no rule regarding the form of acceptance must take, though sometimes the offer will state how it should be accepted, the offeree can use a different format so long as it does not disadvantage the offeror.

Question 11

what case covers effectiveness of acceptance as soon as it is received? (1)

Answer 11

Entores v Miles far east corporation (1955)

Question 12

what is the silence rule? (1)

Answer 12

silence is never seen as acceptance.

Question 13

what case covers silence in terms of acceptance? (1)

Answer 13

Felthouse v Bindley (1863)

Question 14

what case covers wavering and conduct in terms of acceptance? (2)

Answer 14

Reveille independent LLC v anotech international (UK) ltd (2016)
pickfords ltd v celestica (2003)

Question 15

what case covers counter offer’s in terms of acceptance? (1)

Answer 15

Hyde v Wrench (1940)

Question 16

what is meant by battle of the forms? (2)

Answer 16

problems can arise when commercial companies deal with each other using their own standard forms of contract. The courts must decide which contract applies.

Question 17

what cases cover battle of the forms, in terms of acceptance? (2)

Answer 17

butler machine tool co v ex-cell-o corporation England ltd (1979)
Stirling hydraulics ltd v dichromatic ltd (2007)

Question 18

what is the postal rule? (1)

Answer 18

adapted the idea that once you have posted the letter you cannot get it back and is applicable only to royal mail, they are not allowed to give the mail back as it is then the property of his majesty the king.

Question 19

what case covers the postal rule in terms of acceptance? (1)

Answer 19

Adams and Lindsell (1818)

Question 20

when can the postal rule only apply? (1)

Answer 20

only applies to letters of acceptance (a letter setting out an offer is only valid upon receipt - the offeree has not received the offer therefore they are unaware of it)

Question 21

what rules apply to the postal rule? (2)

Answer 21

-only applies if the post is usual or is the expected form of communication
-the letter has been properly stamped and addressed

Question 22

what methods of communication can acceptance occur? (3)

Answer 22

-post
-phone calls / video calls
-messaging / email

Question 23

when does an acceptance apply in terms of messaging as a form of communication? (1)

Answer 23

when the reasonable person would have read their messages / emails

Question 24

what cases covers methods of communication in terms of time of acceptance? (2)

Answer 24

monidial shipping and chatering B V V a starte shipping ltd (1996)
Thomas v BPE solicitors (2010)

Question 25

what case covers messaging as a form of communication? (1)

Answer 25

Brinkibon v Stahag Stahl

Question 26

what case covers acceptance by machines? (1)

Answer 26

Thornton v show lane parking (1971)

Question 27

what act covers distance selling and acceptance? (2)

Answer 27

old consumer protection (distance selling) regulations (2000)
the consumer contracts regulation (2013)

Question 28

what occurred in the Thomas v BPE solicitors case and when was it? (5)

Answer 28

an email of acceptance was received close to 6pm, a night before a bank holiday, the email was not available to be read until the Tuesday morning. The email was sent after working hours from which the court stated it must be resolved from ‘reference to the intention of the parties by sound business practice and in some cases by a judgement where the risks should lie’ as stated in Brinkibon. Court held that the time of day did not matter, the email could be read on a portable device, it was a valid acceptance. (2010)

Question 29

what occurred in the Adams v Lindsell case and when was it? (4)

Answer 29

Linsell wrote to adam offering to sell some wool in the course of post, the letter was delayed in the post, on receiving the letter Adam posted the letter of acceptance the same day but because of the delay Linsell assumed Adams did not want the wool. It was a valid acceptance however because of the postal rule. (1818)

Question 30

what occurred in the Yates v Pulleyn case and when was it? (3)

Answer 30

an option to purchase land was required to be agreed by notice in writing. when the letter was sent by ordinary post it was argued this was no acceptance, this argument was rejected as it was a convenience for the offeror to ensure it had arrived. (1975)

Question 31

what occurred in the Felthouse v Bindley case and when was it? (3)

Answer 31

there were discussions of purchase of a horse, the final letter from the offeror stated that if he heard nothing in reply he would assume the horse was still his. there was no further response so when the man came to collect the horse it was no longer there an had been sold to someone else. (1863)