Problem Areas In Offer and Acceptance Flashcards
Adams v Lindsell
Facts: • A sends letter to B offering to sell wool
• B returns letter but it is misdirected and arrives two days late
• A has since sold the wool
Judgment: For Claimant
L.P: • For business’s efficacy, it would make sense for the contract to be formed when the letter is posted - POSTAL RULE
Henthorn v Fraser
Facts: • H called a land office to negotiate purchase of a house
•Secretary signed and handed him a note giving him the option to purchase for 14days at £750
• Following day, secretary posted to H withdrawing the offer
• Later that day C posted unconditional acceptance
• D sold house to someone else
Judgment: For Claimant
L.P: • Reinforces postal rule for acceptance
• Postal rule doesn’t apply to revocation
Holwell securities v Hughes
Facts: • Contract concerned sale of property
• Option was to be exercised “by notice in writing to D”
Judgment: For D
L.P: • Request to specifically see acceptance overrides postal rule
Household fire and carriage accident insurance v Grant
Facts: •D applied for shares in C’s company
• Company allotted shares and posted notice
• Letter was never received by D and went company went into liquidation they sought payment from D for shares
•D denied being a shareholder
Judgment: For Claimant
L.P: • Even in circumstances where letter is not received at all -> acceptance is posted and therefore a contract is formed
Payne v Cave
Facts: • C was having some something sold at auction
•There was dispute between D and the auctioneer
• D changed his mind and refused to pay for it
Judgment: For Defendant
L.P: • An offer can be revoked at any time before acceptance
• Acceptance would be auctioneers hammer coming down
Dickinson v Dodds
Facts: • D offered to sell a property to C
• C was told by a third party that D was negotiating with someone else
• C tried to accept offer but it had already been sold to someone else
Judgment: For Defendant
L.P: • Revocation of an offer can be made by a third party
Four Millbank Nominees
Cannot contract to contract
