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 accepted 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.
Death
It has been suggested that the death of either party terminates the offer as it makes it impossible for the parties to reach agreement. It’s clear that the offeree may not accept after he has had notice of the offeror’s death – Re Whelan (1897)
