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Offer + Acceptance - Coggle Diagram
Offer + Acceptance
Acceptance;
Ruled of Acceptance;
METHOD of acceptance usually mirrors the offer.
UNCONDITIONAL assent to all the terms.
COMMUNICATED to offeror.
Method;
Usually will be accepted using the same method but you can accept an offer in any form.
However if the offeror has insisted to accept in a certain way then the offeree but accept using that method.
Parkinson Stove; P said acceptance should be made using a particular printed form and that no other manners of acceptance would be valid. C accepted letter sing different way and it was held that there was no valid acceptance so no contract.
Offer must be Unconditional;
If offeree tries to vary the terms than the offer is terminated.
Brogden;
Stevenson v Mclean; Offer made. Offeree said 'can the delivery of the iron be staggered?' Offeree accepted offer by telegram. Offeror had sold iron to another saying that the question about delivery was a counter offer.
Held that it wasn't a counter offer and it was only an enquiry.
Acceptance must be Communicated;
a) Unilateral contracts - therefore communication is the start of the act.
b) Bilateral contracts - Acceptance must be communicated to the offeror.
c) Silence isn't acceptance;- Felthouse v Bindley; Uncle wanted to buy a horse from his nephew. Uncle said 'if I hear no more from you then i will consider it mine for $30'. Nephew, wanting to sell the horse, said nothing. Horse was mistakenly sold to another person.
Held there was no contract and nephew hadn't communicated the acceptance.
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Postal rule for acceptance;
Post is used when it is the normal, anticipated or agreed means of acceptance.
Adams v Lindsell; Wool for sale, accepted by post (as agreed), lengthy delay and by the time it was received the wool was already sold to someone else. Sued for breach.
Held that acceptance took place when the letter was posted.
Postal rule doesn't apply to revocation.
Harris' case.
Postal rule only applies when it is reasonable to use the post.
Henthorn v Fraser; A withdrawal of an offer had been posted at midday but wasn't received until 5pm. Parties worked in different towns. Acceptance of offer posted at 3.50pm.
Held that the contract was binding when the acceptance was posted.
Postal rule applied in the case of Grant; Mr Grant purchased some shoes; company posted him a letter saying that the shares was his but he he never received the letter. Company goes bankrupt and asked mr grant for the payments.
Held that he had to pay as due to the postal rule it is irrelevant whether mr grant received the letter or not.
Wasn't until the case of Holwell where a way of avoiding the postal rule was established. Offeror stated the acceptance via post must be 'actually recieved.
Postal rule does not apply to telex;
Entores v Miles; Dutch company sent an acceptance to English company by telex.
Held that postal rule doesn't apply and the telex must actually be received.
Telex doesn't have to be read;
The Brimnes; Case was about withdrawal by telex. Telex sent within office hours but not read till the next day.
Held that the withdrawal was when the telex was received and not read.
What if telex is sent outside office hours?
Brinkibon; Telex received when office was closed. When did acceptance take place?
Held that the acceptance took place once the office was open.
Postal rule doesn't apply for fax machines;
Mondial shipping case; Telex was sent outside office hours. Court had to decide whether it was effective when it was received or when the office was open. Judge looked at Brinkibon and Brimnes and aid it was effective once office opened.
Also considered fax machines and said that the PR doesn't apply to faxes.
Postal rule doesn't apply to emails;
Thomas; Solicitor went home at 5.45 on friday. Other party sent email at 6 on friday. Solicitor didn't read email till tuesday. Held that the acceptance was effective as it was held to still be during office hours and was therefore 'received' in office hours.