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Acceptance - Coggle Diagram
Acceptance
The Postal Rule
The postal rule is an exception to the general rule that a contract is only complete when the acceptance is received by the offeror and the contract is made at the place where the acceptance is received
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Sanderson v Cunningham
The plaintiff sent in a proposal for an insurance policy through a Dublin insurance broker which can be seen as an offer
The defendant insurance company in London issued a policy which they posted to the plaintiff which was, subsequently, read and signed by the plaintiff.
Later, the plaintiff wished to sur the defendant in Ireland but could only do so if the contract had been entered here
The claim was unsuccessful, with the Irish Court of Appeal holding that the contract had been formed when the acceptance was posted in London
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Counter Offer
Cases
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Swann v Miller
The plaintiff purchaser offered to buy a property for £4750, unaware that the property in question was subject to a ground rent for £50 per year
The sellers assumed that the plaintiff was aware of the charge, and wrote back "accepting" their offer of £4750 plus £50 annual rent
The Court of Appeal held that no contract had been agreed as the response of the seller included a new term and hence did not constitute an acceptance of the original offer but was in fact a counter offer
There was no evidence found that the plaintiff purchaser accepted this counter offer, despite fact that it was alleged by the defendant seller that they had
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Where intention is absent, there may not be a valid acceptance of the terms of the offer
Parkgrange v Shandon
It was held that a contract signed by the vendor of property did not amount to an acceptance of the plaintiff's offer to buy the property
The vendor had merely singed the contract for the purpose of obtaining a capital gains tac clearance certificate in the event that the sale did go ahead.
No acceptance was ever communicated to the purchaser and the first that the purchaser knew about this document was when it turned up in discovery after litigation had commenced
Battle of the Forms
In commercial negotiations it can be difficult to determine at what time the parties reached agreement.
It can be difficult to determine when an offer or counter offer has been made when negotiations consist of each part sending printed forms back and forth
If a dispute occurs, each party will claim that the terms that appear on their printed forms constitute the basis of the contract
The Courts are left to examine the correspondence as a whole to ascertain what, if any, agreement has been reached
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