Formation Of A Contract - Acceptance

Question 1

What is acceptance?

Answer 1

Acceptance confirms that the terms of the offer are agreed. When this is done there will be a binding contract.

Question 2

What is the first rule of acceptance?

Answer 2

How is an offer accepted? - anyway but silence. Offeror must be aware of acceptance for it to be valid.

Case : felthouse v bindley
Held- silence is never valid acceptance

Question 3

What is the second rule of acceptance?

Answer 3

2. You can specify how acceptance is to be communicated

Case : Yates v Pulleyn
Held- valid acceptance was merely a directory instruction not a mandatory one.

Question 4

What is the third rule of acceptance?

Answer 4

3. Acceptance by conduct - through actions this will be considered valid acceptance.

Case : carlill v carbolic smokeball co

Question 5

What is the fourth rule of acceptance?

Answer 5

4. Acceptance by post
   - acceptance takes place as soon as letter is posted
5. Usual means of communication
6. Properly addressed and stamped
7. Prove letter is posted

Case : Adams v Lindsell
Held- acceptance takes place as soon as letter is posted.

Question 6

What is the fifth rule of acceptance?

Answer 6

5. Electronic means of communication - acceptance occurs when offeror is aware, if sent outside office hours three acceptance will take place at start of next working day (9)

Case : Thomas v BPE solicitors
Held- acceptance didn’t take place until office reopened on the Tuesday