4 rules in relation to acceptance

Question 1

What are the 4 rules re acceptance?

Answer 1

a) in response to the offer

b) unqualified

c) may need to follow prescribed mode of acceptance

d) communicated

Question 2

What does it mean that acceptance must be in response to the offer?

Answer 2

Only the person / people to whom an offer is made (the offerees) can accept the offer.

Where an offer is made generally to the world at large then everyone with notice of the offer is an ‘offeree’, and a valid acceptance may be made by any person with notice of the offer

Question 3

What does it mean by acceptance must be unqualified?

Answer 3

Acceptance must be unqualified and must correspond exactly with the terms of the offer

Question 4

What is acceptance must be unqualified also known as?

Answer 4

‘the mirror image rule’

Question 5

How will the court assess that acceptance must be unqualified?

Answer 5

examining communication between parties to discover whether, at any one time, one party may be deemed to have assented to all the terms, express and implied, of a firm offer by the other party.

An assent which is qualified in any way does not take effect as an acceptance.

NOTE: this will touch into whether the acceptance is a counter-offer/ request for more info…

Question 6

What happens if the offeror makes it clear that they will not be bound unless acceptance is communicated in that precise way?

Answer 6

= only acceptance by that mode will suffice. Prescribed mode of acceptance must be made mandatory, otherwise another mode of acceptance which is no less advantageous to the offeror will bind them

Question 7

What is the general rule for acceptance must be communicated?

Answer 7

Acceptance applies from the moment it is communicated. Where the offeree merely intended to accept, but did not communicate that intention to the offeror, there is no contract

Question 8

is mere mental assent sufficient for acceptance to be communicated?

Answer 8

No

Question 9

Can silence bind the offeree?

Answer 9

No

Question 10

How can third party acceptance be communicated?

Answer 10

No contract if communication is made by a third party without the authority of the offeree

Question 11

What is the postal rule?

Answer 11

where post is deemed to be a proper means of communication, acceptance takes effect from the moment the letter of acceptance is properly posted – not from the moment it is received by the offeror.

BTW: A letter is properly posted when it is put into an official letter box or into the hands of an employee of the Post Office who is authorised to receive letters.

Question 12

When does the postal rule not apply? (4 elements)

Answer 12

a) if not contemplated post would be used
* only applicable if reasonable in all the circumstances for the offeree to have used the post

b) to letters revoking offers

c) if incorrectly addressed

d) if disapplied by offeror.
* if offeror outs postal rule = letter of acceptance only effective of + when it’s received.

Question 13

Does the postal rule apply where where the acceptance is delayed or lost in the post?

Answer 13

YES

Question 14

What is the general rule when acceptance is made by an instantaneous mode of communication?

Answer 14

acceptance takes place at the moment the acceptance is received by the offeror

Question 15

What may prevent offeror from saying that they did not receive the acceptance in the case of instantaneous mode of communication?

Answer 15

If the acceptor reasonably believes that he has communicated their acceptance but this is not so because of the fault of the offeror

Question 16

How does the postal rule work on emails?

Answer 16

It doesnt - acceptance by email is not effective when sent, but only when received

Question 17

What happens if sent on a Friday (for working purposes)

Answer 17

Deemed received on Monday if out of office hours.

If during working hours on Friday but not seen by workers till Monday = effective when received.

Question 18

The communication of acceptance is waived in a unilateral contract. What does this mean?

Answer 18

All those who search for the item in question need not inform the offeror of their intention to do so; the acceptance is complete when the finder returns the object to the offeror.