Formation- Acceptance

Question 1

What is acceptance?

Answer 1

The moment when the contract comes into being

Question 2

What must be considered when thinking of acceptance?

Answer 2

• the effect of qualified acceptance in negotiations
• what constitutes an unqualified acceptance
• the time within an offer should be accepted

Question 3

What is a precise definition of acceptance and the extent in which it legally bounds?

Answer 3

It is the acceptance of an offer that creates contractual relations. An acceptance is a communication to the offer or of an unqualified acceptance to both the terms of the offer and to the implied invitation in every offer that the offered commits himself or herself to a contact. Acceptance means there is consensus in idem.

Question 4

What is a bilateral contract?

Answer 4

Acceptance in the way of a counter offer

Question 5

What is a unilateral contract?

Answer 5

Acceptance by the way of performing acts which are specified in the offer

Question 6

What are the rules to acceptance when it is not clear if a contract has been accepted?

Answer 6

Acceptance must be:

• inferred from conduct
• unqualified and complete
• made in conformity with the requirements of the offer
• be communicated to the offer or
• the postal rule
• the battle of forms

Question 7

How can acceptance be inferred from conduct?

Answer 7

For instance, by work preformed on basis contained in written, but unsigned document, by dispatch or receipt of goods. See on in Brogden v Metropolitan Railway Co (1877)

Question 8

How is acceptance concluded by it being unqualified and complete?

Answer 8

Any variation from unqualified and complete acceptance will usually be a counter offer and is not true acceptance, but mere request for clarification of offers term is not a counter offer. Similarity request for information is not an offer. For example, Stevenson an Co v McLean (1880)

Question 9

Does qualified acceptance conclude a contract?

Answer 9

No because it is a counter offer

Question 10

Does silence amount to assent?

Answer 10

No the rule as to silence is designed to protect the offered. The offer or can wave his right to communication in some circumstances

Question 11

What is the postal rule?

Answer 11

When using the Royal Mail acceptance is effective at the time of posting the acceptance. Only exception is if another letter is posted in the same day terminating the acceptance.

Question 12

What is the rules of acceptance with regards to email?

Answer 12

One can enter a contract via email, however it is not a defence to say that the emails or attachments had not been read or did not reflect what was intended

Question 13

What is the battle of the forms?

Answer 13

Arises when standard form of documentation is used and terms conflict.
Mac queen and Thomson say whichever party gets there terms in last wins