Offer and Acceptance

Question 1

What is a cross offer? Give a case example.

Answer 1

Tinn v Hoffman (1873): both parties make same offer, but neithe realise the other has made the offer. Both made same offer regarding sale of iron
- ‘Cross-offers aren’t an acceptance’

Question 2

“A person who had accepted an offer having not known to him been revoked, shall be in the position safely to act upon the footing that offer and acceptance constitute a contract binding on both parties”

Answer 2

Byrne + Co v Va Tienhoven + Co

Question 3

Give an example of a counter offer.

Answer 3

Hyde v Wrench (1840): Farm for sale at $1000, buyer offered $950 which is rejected, new offer destroys old offer

Question 4

Acceptance = “A final and unqualified assent to the terms of the offer”

Answer 4

Chitty on Contracts

Question 5

What is a standard form agreement? Give a case example.

Answer 5

‘Model’ document with terms and conditions
Butler Machine Tool v Ex-Cell-O-Corpn (1979) offer on plaintiffs terms
counter-offer on defendants terms
accepted by plaintiff on D’s terms

Question 6

Give three examples of communication of acceptance

Answer 6

Bridgend v Metropolitan Railway: acceptance by performance
Entores v Miles Far East Corpn (1955): message must be received
Fellhouse v Bindley: silence

Question 7

What is the postal rule?

Answer 7

Acceptance when posted

Adams v Lindsell (1818) wool already sold, continuous offer accepted by posting acceptance

Question 8

What is an exception to the postal rule?

Answer 8

Holwell Securities v Hughes (1974):

Land purchase, required notice in writing within 6 months. Post never arrived - intended for notice to be given!

Question 9

Give three examples of communication of acceptance in modern times

Answer 9

• Brinkinbon v Stahag Stahl mbH:
  Telex case, 3 factor test (intent, business practice, risk)
• Tenax Steamship Co: if sent during office hours must be regarded as being received
• Thomas v BPE Solicitors: sound business practice means needed to let them know before leaving office

Question 10

What is the holistic approach?

Answer 10

• Storer v Manchester: sent acceptance by post, could not stop purchase of house
• Gibson v Manchester City Council:
  reaffirmed original house purchase offer ‘no need to look for a strict offer and acceptance’

Question 11

What is an offer?

Answer 11

‘An expression of willingness to contract with the intention that when the offer is accepted it will become binding’