Formation of a contract: Acceptance

Question 1

What does acceptance confirm?

Answer 1

That the terms of the offer are agreed

Question 2

Once an offer has been accepted there is a …

Answer 2

Binding contract

Question 3

What does there have to be alongside acceptance?

Answer 3

Consideration and Intention to create legal relations

Question 4

What must acceptance be?

Answer 4

Positive and unqualified
Communicated to the person who made the offer

Question 5

What can acceptance be?

Answer 5

Verbal or written

Question 6

How is an offer accepted?

Answer 6

Can be in any form, doesn’t have to be in the same method which the offeror used as long as offeror agrees for that method to be used

Question 7

What is the rule on acceptance?

Answer 7

That the offeror must be aware of acceptance for acceptance to be valid

Question 8

What is never acceptance?

Answer 8

Silence

Question 9

Felthouse v Bindley

Answer 9

Facts: Nephew discussed buying horse from uncle, gave price and said if I don’t hear from you I will consider him mine, horse was sold by mistake at auction
Held: No contract, silence is never accepted

Question 10

How is offer accepted AO3

Answer 10

P - Was the correct decision as it prevents the floodgates opening and frivolous claims overwhelming the courts
DP - It also sets clear predent that makes sense, easier for lay people to understand
WDP - However, it may be difficult for small businesses to communicate acceptance such as Etsy compared to Asos

Question 11

Mandatory Instructions

Answer 11

Instructions which the courts decide are non-negotiable, it not followed, there’s no contract

Question 12

Directory Instructions

Answer 12

Instructions which the courts decide are not fundamental, if not followed, there can still be a valid contract

Question 13

What will electronically signed contracts be applied the same as?

Answer 13

A written signature

Question 14

What is the issue with telephone conversations?

Answer 14

Difficult to prove what was said

Question 15

Wells v Devani

Answer 15

Facts: estate agent successful in commission, even though commission wasn’t included in contract, SC agreed the contract wouldn’t make sense without term

Question 16

Instructions AO3

Answer 16

P - No Parliamentary definition of mandatory and directory instructions, leads to judicial creativity
DP - Conflicts with ROL
WDP - Hpwever, judges can use expert knowledge

Question 17

When does acceptance take place?

Answer 17

When it’s communicated to the offeror
When offeree states acceptance

Question 18

Acceptance through conduct

Answer 18

By actions
Carlill v Carbolic Smokeball - accepted through conduct when she accepted the terms and conditions

Question 19

Reveille Independent v Anotech

Answer 19

Contract drafted by offeror, offeree sent it back with amendments, offeror never signed but there was a binding contract when the offeror fulfilled his part of the agreement

Question 20

Acceptance through conduct AO3

Answer 20

P - Shouldn’t be binding as it is inconsistent with the rules on silence (Felthouse v Bindley)
DP - If offeror wishes to revoke offer but unaware it’s been accepted, can lead to lengthy litigation
WDP - However, should be binding as they still read it and provided services

Question 21

Acceptance by post

Answer 21

Acceptance takes place as soon as letter is posted
Must be usual/expected means of communication
Must be properly addressed/stamped
Offeree must be able to prove letter has been posted

Question 22

Adams v Lindsell

Answer 22

Facts: Delayed letter sent by post, offeror unaware there was acceptance, sold wool to third party
Held: Acceptance took place as soon as letter was posted, no communication of revocation, was a valid contract

Question 23

Getreid v Contaminar

Answer 23

Facts: Offeree sent letter of acceptance by post, wrong address on front of letter
Held: Postal rule didn’t apply, unreasonable to put offeror at disadvantage as offeree made mistake

Question 24

Postal rule AO3

Answer 24

P - Unaware it’s been sent out until it’s received, they’re bound for a period of time without being aware
DP - Can’t receive letter and send to someone else, could be liable even though wasn’t malicious
WDP - Upholds public policy as it promotes consistency

Question 25

Electronic methods of communication

Answer 25

Acceptance occurs when offeror is aware of acceptance

Question 26

Thomas v BPE Solicitors

Answer 26

Facts: Email sent at 6pm on Friday, office didn’t reopen until tuesday
Held: Acceptance didn’t take palce until office reopened on tuesday