S2: Acceptance Flashcards
What is acceptance ?
Acceptance is what turns a specific and comprehensive offer into an agreement
Requirements of Acceptance
- Agreements being certain
- Terms of acceptance must match terms of the offer
- Acceptance must be communicated to the offeror
Acceptance must be certain- what does this suggest ?
- It must be a mere acknowledgement of the offer. Silence can’t denote silence as suggested by the case of Felthouse v Bindley (1862)
- Acceptance must be determined from the words of the document That have been passed between parties or inferred from conduct so should be judged objectively.
- Finally, conduct must show clear intention as suggested by the case of Brogden v Metropolitan Railway Co. (1877)
Terms of Acceptance must match terms of the offer - What does this mean ?
This is reflected as the mirror principle. The principle was originally laid down in Hyde v Wrench
Aceeptance must be communicated - what does this mean ?
Offer must be communicated well for acceptance to occur.
For example:
- There’s no contract if a person writes acceptance on a piece of paper which he keeps as suggested by the case of Kennedy v Tomassen.
-There is also no contract where a company resolves to accept and application for shares but doesn’t communicate to the applicant as suggested by the Best’s Case (1865).
- Furthermore, there is also no contract where a person decides to accept an offer to sell good to him and instructs his bank to pay the offeror but neither he nor the bank gives notice of this fact – Brinkibon Ltd v Stahag Stahl (1983)
When can there also be a contract ?
If the offeror knows of acceptance, there can be a contract even though the acceptance wasn’t brought to his notice by the offeree- Bloxham’s Case (1864)
Exceptions to the general rule of Acceptance
- Offeror may expressly/ implied law waive the requirement of communication- Shipton v Cardiff Corp (1917)
- Offeror may be precluded from denying the acceptance was communicated if it was his own fault, he didn’t get it – Entores v Miles Far East Corps (1985)
What is acceptance by Post or more commonly known as the Postal Rule ?
-This is where acceptance takes place as soon as the letter is posted - Adams v Lindsell case
- Posted acceptance takes effect even if it never reaches the offeror due to it being lost/delayed in the post - Household Fire Insurance Co Ltd v Grant (1878)
When does the postal rule not apply ?
It doesn’t apply to email as suggested by Thomas v BPE Solicitors (2010) where the court followed Brinkibon. However Lord Wilberforce cleared ‘no universal rule can cover all such cases’.
In regards to the postal rule, what is Internet Shopping ?
The usual way for a seller to acknowledge acceptance will be either by response on the website or in email correspondence.
What are the exceptions to the postal rule ?
- It doesn’t apply to revocation of offers
- Postal acceptance overrides a withdrawal of an offer which was posted before the acceptance- Byrne v Van Tienhoven (1880)
- A letter of acceptance bears the wrong or incomplete adress, or isn’t properly stamped- The Alexia M (2005)
What is a prescribed mode of acceptance ?
This is where an offer requires the acceptance to be expressed or communciated in a certain way and can only be acceptd in that was as suggested by the case of Frank v Knight (1937)
What is a termination of an offer ?
This can be conducted through revocation, rejection, lapse of time and death.
Revocation
This is where an offer can be revoked at any time before acceptance of that offer- Payne v Cave (1789). It must be communicated to the offeree. It can be effective even if he fails to read it- The Brimnes case. It doesn’t need to come from the offeror- Dickinson v Dodds
Lapse of Time
This is where an offer states that it will only last for a specified time and can’t be accepted after this time. If the duration of the offer isn’t limited by its terms, the offer will terminate after the lapse of time – Ramsgate Victoria Hotel v Montefiore.
