Acceptance. Flashcards
What is acceptance?
A final and unqualified assent to the terms of an offer.
What is the main case?
Butler Machine Tool Co v Ex-cello.
What are the 5 guidelines of acceptance?
- Form of words or conduct.
- Who can give assent?
- Must the offeree intend to accept?
- Must the offeree comply with the manner?
- To what extent must acceptance correspond with offer?
How must the offeree intend to accept (and case)?
They must know about the offer.
“Act in reliance” of offer.
R v Clarke.
How must offeree comply with manner (and case)?
Mandatory/directory language.
Tinn v Hoffmann.
What is a counter offer (and case)?
Varies terms of offer and rejects it -destroying it.
Hyde v Wrench.
What is the general rule of communication of acceptance?
The Rule of Receipt - acceptance must be communicated and received.
What are the 3 exceptions to acceptance being communicated?
- Offeror’s negligence.
- Postal rule.
- Implied waiver of unilateral offers.
What is rule of receipt case?
Entores v Miles Far East Corporation.
What is the postal rule (and case)?
Acceptance as soon as letter is posted.
Adams v Lindsell.
When will the postal rule apply?
- If contemplated by both parties.
- Offeror must allow it (can exclude its application).
- Not if it would produce “manifest inconvenience and absurdity.”
What are bilateral and unilateral contracts?
Bilateral - both parties are promising something.
Unilateral - 1 party promising something if the other party does something else.
What are the rules on revocation (and case)?
- Revocation must be communicated to offeree (Byrne).
- If acceptance received before revocation, there is an agreement.
