Offer and Acceptance

Question 1

Offer

Answer 1

• Smith v Hughes = meeting of minds [ad idem]
• Gibson v Manchester City Council = there must be an explicit offer, not an invitation to treat
• Carbolic Smoke Ball = unilateral offers could be accepted by anyone but are only completed by those who perform the task
• Stevenson, Jaques & Co v McLean = a request for information is not an offer
• Shuey v US = offer must be revoked the same way the offer was given
• Harvela Investments v Royal Trust of Canada = referential bids are unacceptable [so saying I will bid £1,000 over the highest], highest offer must be accepted if stated

Question 2

Acceptance

Answer 2

• Mirror Image Rule = the acceptance must correspond with the offer – Hyde v Wrench: counteroffer rejected, original offer re-suggested, but no contract as the counteroffer cancels the original offer
• R v Clarke = can’t claim a contract if you accept after completing the contract
• Felthouse v Bindley = silence does not constitute acceptance
• Errington v Errington = continuing acceptance, by continuing to perform

Question 3

Communication

Answer 3

• Manchester Diocesan Council for Education v Commercial and General Investments = if the communication goes to the wrong place, it is still valid, so long that it does not disadvantage the offeror
• Entores = no proper, or completed communication means that the contract is void
• Brinkibon = acceptance of an offer must get through in order for a valid contract to be formed, the contract is only completed once the acceptance is in receipt, instant communication
• Tenax Steamship = withdrawal from an offer via telex is valid from when it could have been read [such as during office hours]

Question 4

Postal Rule

Answer 4

POSTAL RULE = Adams v Lindsell = acceptance is valid from when it is posted, not received, acceptance only, not offers [Howell Securities v Hughes]
Vs. The postal rule can be excluded = Blackpool and Flyde Aero Club v Blackpool BC: invitation to treat specified that offers had to be sent by a certain time, but the invitation said that it would consider all offers, so D was under an obligation to consider all offers