Acceptance

Question 1

Acceptance rules

Answer 1

1 - agreement must be certain
2 - acceptance must exactly match the terms of the offer
3 - acceptance must be communicated to the offeror

Question 2

1 - Agreement must be certain

Answer 2

• no ambiguity
• mere acknowledgement isn’t acceptance
• intention to ‘place an order’ isn’t
• if multiple offers need to know which one.

Question 3

Forms of acceptance

Answer 3

1 - conduct - conduct will only amount to acceptance if it is clear that the offeree did the act with the intention (actual or apparent) of accepting the offer. (Brogden v metropolitan railway co. )
2 - Silence - will not normally constitute acceptance (felt house v Bindley), unless conditional (Re Selectmove)
3 - subject to contract - not acceptance (Chillingworth v Esche)
4 - offers you don’t know exist - (Gibbons v Proctor)

Question 4

2 - Acceptance must match the terms fo the offer

Answer 4

• mirror image rule
• Consensus ad idem (Meeting of minds)
• The counteroffer rejects the original offer, and it may not be reinstated (Hyde v Wrench)
• offer with different terms = counteroffer (Tinn v Hoffman &. Co)

Question 5

3 - acceptance must be communicated to the offeror

Answer 5

• no communication = no contract (Kennedy v Tomassen)
• communicated when brought to the notice of the offeror (Entores).
  Exceptions
  1 - offeror can waive requrienement (Shipton v Cardiff corps)
  2 - if offeror doesn’t get it (Entores)
  3 - can be communicated to offeror; s agent (Henthorn v Fraser).
  4 - Acceptance by point (postal rule)
  5 - where unilateral offers request performance (Carlill).

Question 6

Postal Rule Principles

Answer 6

• exceptions to the term that acceptance must be communicated to the offeror.
  -Adams v Lindsell – postal acceptance takes effect when the letter is properly posted
• properly posted = in hands of post office of authorised employee.
• takes effect even if never reaches offeror (Household Fire Insurance Co. )
• only applies if reasonable to use post.

Question 7

Problems with the Postal rule

Answer 7

1 - may be excluded by terms of the offer (Holwell Security v Hughes).
2 - postal acceptance overrides withdrawal of an offer which was posted before acceptance but not yet received (Byrne v Van Tienhoven)
3 - letter may be lost or delayed if wrong address etc.

Question 8

Modern use of Postal Rule

Answer 8

• doesn’t apply to instantaneous modes of communications (Entores v Miles far East Corps).
• instantaneous are accepted on receipt not sending.
• Doesn’t apply to email (Thomas and Another v BPE Solicitors).