Please enable JavaScript.
Coggle requires JavaScript to display documents.
Offer and Acceptance - Coggle Diagram
Offer and Acceptance
Acceptance
-
-
Postal rule - Acceptance is effective the moment it is posted properly (Adams v Lindsell [1818]), even if delayed/lost (Household Fire Insurance v Grant [1879]). Excluded if specified by offeror (Holwell Securities v Hughes [1974]).
Instantaneous Communication - Effective when received, or when office re-opens (Entores v Miles Far East [1955]; Brinkibon [1983]).
-
Principles and evidence
-
-
Common ITT situations
Advertisement - Generally ITTs (Partridge v Crittendon), unless unilateral promise with clear terms (Carlill v Carbolic)
-
Termination of an offer
Counter-offer - Rejects oringinal offer (Hyde v Wrench), enuires are not counter offers (Stevenson v McLean)
Revocation - Valid anytime before acceptance (Routledge v Grant [1828]), must be communicated (Byrne v Van Tienhoven [1880]), can be via reliable third party (Dickinson v Dodds [1876]). Cannot revoke unilateral offers once performance starts (Errington v Errington [1952]).
Lapse of time/death - Offer lapses after a reasonable time (Ramsgate Victoria Hotel v Montefiore [1866]).
Application of the rule
Battle of the forms
Occurs when parties send conflicting standard terms. Generally resolved by the "Last Shot" rule—the final set of terms sent before performance begins applies (Butler Machine Tool Co v Ex-Cell-O Corp [1979]; G Percy Trentham v Archital Luxfer [1993]).
Auctions
Item display = ITT. Bids = Offers. Fall of hammer = Acceptance. Auction without reserve = Unilateral offer to sell to highest bidder.
Tenders
Request for tenders = ITT, submitted tenders = Offers (unless request promises to accept lowest/highest bid).
Evaluation
Traditional approach
Contract law relies on strict identification of a clear, matching offer and acceptance.
-
Modern challenges
Standard terms, online shopping, and instantaneous messaging can make determining the exact moment of offer/acceptance complex (e.g., website pricing errors like Kodak case).