Formation of a contract: Acceptance Flashcards
What does acceptance confirm?
That the terms of the offer are agreed
Once an offer has been accepted there is a …
Binding contract
What does there have to be alongside acceptance?
Consideration and Intention to create legal relations
What must acceptance be?
Positive and unqualified
Communicated to the person who made the offer
What can acceptance be?
Verbal or written
How is an offer accepted?
Can be in any form, doesn’t have to be in the same method which the offeror used as long as offeror agrees for that method to be used
What is the rule on acceptance?
That the offeror must be aware of acceptance for acceptance to be valid
What is never acceptance?
Silence
Felthouse v Bindley
Facts: Nephew discussed buying horse from uncle, gave price and said if I don’t hear from you I will consider him mine, horse was sold by mistake at auction
Held: No contract, silence is never accepted
How is offer accepted AO3
P - Was the correct decision as it prevents the floodgates opening and frivolous claims overwhelming the courts
DP - It also sets clear predent that makes sense, easier for lay people to understand
WDP - However, it may be difficult for small businesses to communicate acceptance such as Etsy compared to Asos
Mandatory Instructions
Instructions which the courts decide are non-negotiable, it not followed, there’s no contract
Directory Instructions
Instructions which the courts decide are not fundamental, if not followed, there can still be a valid contract
What will electronically signed contracts be applied the same as?
A written signature
What is the issue with telephone conversations?
Difficult to prove what was said
Wells v Devani
Facts: estate agent successful in commission, even though commission wasn’t included in contract, SC agreed the contract wouldn’t make sense without term