Formation Of Contract: Acceptance Flashcards
What’s acceptance?
acceptance confirms that the terms of the offer are agreed
Once offer accepted there’s a binding contract
Has to be consideration and ITCLR
Acceptance must be?
Positive and unqualified
Verbal, written or by conduct
Must be communicated to person who made the offer
Yes but doesn’t equate to acceptance
how is offer accepted
acceptance can be in any form, doesn’t have to be in same method offeror used
rule is - the offeror must be aware aware of acceptance to be valid
SILENCE NEVER A VALID ACCEPTANCE
What was held in felt house v bindley
there was no contract, silence never valid acceptance
with acceptance when will there be no valid contract
usually offeror will state how they want acceptance to be communicated and if this isn’t complied with, will be no valid contract
sometimes court will waiver this and make acceptance valid anyway.
what was held in Yates v pullen
requirement was waived, was a valid acceptance was a ‘merely directory’ instruction not a mandatory instruction
contracts signed electronically will what?
will generally be applied the same way as a written signature would be (neocleous v Rees)
whats the issue with telephone conversations (ao1)
it can cause issues often difficult not prove what was said
WELLS V DEVANI
an estate agent was successful in his claim for commission as even though commission wasn’t included in contract.
when does acceptance takes place?
acceptance takes place when its communicated to the offeror
what is acceptance by conduct
acceptance takes place by actions of the offer/offeror
(carlill v carbolic smoke ball co) in this case contract was accepted by conduct she took the smoke ball
this is valid acceptance e.g reward contracts
what was held in reveille v anotech
there was acceptance through conduct, even though the counter - offer remained unsigned, was still a binding contract
what is acceptance by post
acceptance takes place when sent/postage
what are the postal rules
for acceptance by post ‘the postal rules are followed’
only apply to letters of acceptance - not offers or counter offers
rule is acceptance takes place as soon as letters posted
1) post must be usual means of communication
2) letter must be properly addressed or stamped
3) offeree must be prove letters posted
what was held in Adams v lindsell
acceptance took place as soon as the letters posted, no communication of revocation was a valid contract
if letters lost and never delivered is there acceptance
if letters lost and never delivered there is still valid acceptance (household insurance v grant