Offer and Acceptance Flashcards
To constitute acceptance, the offeree must fulfil 3 conditions
- unqualified expression of approval,
- Exactly match the terms of the offer,
- Communicated
What happens when there is a counter offers
alter/add the terms by the offeree, the original offer will be destroyed and the offeror could reject the counter offer or accept it which forms a new agreement.
Hyde v Wrench [1840]
what happens when there is a Requests for information during the offer
Requests for information are not counter-offers or acceptances
Stevenson, Jacques and Co. v McLean [1880]
Who wins in battle of forms?
Last shot rule - the last party to submit their terms and conditions are likely to be the ones that would apply.
Butler Machinetool Co, Ltd v Ex-Cell-O Corporation Ltd [1979]
What happens if the words of acceptance not receive by offerer?
Receipt rule – no contract will be formed unless words of acceptance are clearly heard by the offeror. unless the offerer waived the need for communication, e.g., unilateral contracts.
Entores Lt v Miles Far East Corporation [1955]
what happens if the offeror has no reply to the offeree after he has made his offer?
Silence in Bilateral Contract is not acceptance.
Felthouse v Bindley [1862]
What happens when acceptance letter is put into the post box?
Acceptance is effective immediately that the letter is put into the post box
Adam v Lindsell [1818]
what happen if the acceptance posted in the post box is not received by the offeror
Acceptance is still effective even if the letter of acceptance is not received
Household Fire and Carriage Accident Insurance Co. Ltd v Grant [1879]
Is postal rule always applicable?
Postal rule is applicable only where it was reasonable in all of the circumstances for the offeree to have used the post
Henthorn v Frazer [1892]
Justification for Postal Rule
- Commercial convenient – offerees would know if a contract had been formed.
- Prevent speculation by posting acceptance but withdraw through a speedier mean
- The offeror indicates the use of post and therefore bear the risk of the system
Criticism of Postal Rule
- Operation of such rule is arbitrary, since it does not apply to non-postal acceptances
- Offeror may believe that since no reply received, then the offeree does not wish to be accepted
Does postal rule apply to instantaneous method of communication?
Postal rule does not apply to instantaneous methods of communication, must be resolved to the intention of the parties.
Brinkibon v Stahag [1983]
what happen if send time ≠ received time under non traditional method of communication?
No universal rule, but if offeree done all that he might reasonably expected, acceptance should take effect when the offeree might reasonably expect it to be communicated to the offeror.
The Brimnes [1975]
Are the method of communication for acceptance in a contract binding?
Method of communication for acceptance is a direction rather than a legal requirement unless it is a condition that a stipulated method to be considered
Siemen Hearing Instruments Ltd v Friends Life Ltd [2014]
What happens if the revocation of an offer is carried out before acceptances?
no contract are form if the revocation of an offer is carried out before acceptance
Payne v Cave [1789]
