The document outlines the principles of acceptance in contract formation, emphasizing that acceptance must be an unqualified agreement to the terms of the offer and must be communicated to the offeror. It discusses various scenarios, including express acceptance, counter-offers, and the postal rule, which states that acceptance is effective once posted. Additionally, it highlights the implications of unilateral offers and collateral contracts, providing case law examples to illustrate these concepts.
The document outlines the principles of acceptance in contract formation, emphasizing that acceptance must be an unqualified agreement to the terms of the offer and must be communicated to the offeror. It discusses various scenarios, including express acceptance, counter-offers, and the postal rule, which states that acceptance is effective once posted. Additionally, it highlights the implications of unilateral offers and collateral contracts, providing case law examples to illustrate these concepts.
The document outlines the principles of acceptance in contract formation, emphasizing that acceptance must be an unqualified agreement to the terms of the offer and must be communicated to the offeror. It discusses various scenarios, including express acceptance, counter-offers, and the postal rule, which states that acceptance is effective once posted. Additionally, it highlights the implications of unilateral offers and collateral contracts, providing case law examples to illustrate these concepts.
The document outlines the principles of acceptance in contract formation, emphasizing that acceptance must be an unqualified agreement to the terms of the offer and must be communicated to the offeror. It discusses various scenarios, including express acceptance, counter-offers, and the postal rule, which states that acceptance is effective once posted. Additionally, it highlights the implications of unilateral offers and collateral contracts, providing case law examples to illustrate these concepts.
Acceptance must be an unqualified agreement to all the terms of
the offer.
'A positive act by a person to whom an offer has been made
which, if unconditional, brings a binding contract into effect.' 01 Acceptance
Consequence
The contract comes into effect once the offeree has accepted the terms presented to them. This is the point of no return. After acceptance, the offeror cannot withdraw their offer and both parties will be bound by the terms that they have agreed. 01 Acceptance Key point (a) Acceptance may be by express words, by action or inferred from conduct. Brogden v Metropolitan Railway Co 1877 The facts: For many years the claimant supplied coal to the defendant. He suggested that they should enter into a written agreement and the defendant's agent sent a draft to him for consideration. The parties applied to their dealings the terms of the draft agreement, but they never signed a final version. The claimant later denied that there was any agreement between him and the defendant. Decision: The conduct of the parties was only explicable on the assumption that they both agreed to the terms of the draft. 01 Acceptance
(b) Acceptance must be unqualified agreement to the terms of
the offer. (c) A purported acceptance which introduces any new terms is a counter-offer, which has the effect of terminating the original offer. (d) Acceptance is generally not effective until communicated to the offeror. (e) Silence of the offeree is not an acceptance. 01 Acceptance
Felthouse v Bindley 1862
The facts: The claimant wrote to his nephew offering to buy the nephew's horse, adding 'If I hear no more about him, I consider the horse mine'. The nephew intended to accept his uncle's offer but did not reply. He instructed the defendant, an auctioneer, not to sell the horse. Owing to a misunderstanding the horse was sold to someone else. The uncle sued the auctioneer. Decision: The action failed. The claimant had no title to the horse. 01 Acceptance (f) Acceptance 'subject to contract': Acceptance 'subject to contract' means that the offeree is agreeable to the terms of the offer but proposes that the parties should negotiate a formal contract. eg:sale of land in England Neither party is bound until the formal contract is signed.
(g) Letters of intent: an indication by one party to another that
they may place a contract with them. 01 Acceptance (h) Cross-offers If two offers, identical in terms, cross in the post, there is no contract. For example, if A offers to sell their car to B for ₤1,000 and B offers to buy A's car for ₤1,000, there is no contract, because there is no acceptance. 02 Commuicaiton of Acceptance
The general rule is that acceptance must be communicated to the
offeror and that it is not effective (and hence there is no contract) until this has been done.
However, this rule does not apply in all cases.
02 Commuicaiton of Acceptance Prescribed mode of communication
The offeror may call for communication of acceptance by
specified means. Communication of acceptance by some other means equally expeditious generally constitutes a valid acceptance unless specified otherwise. This would probably apply also to acceptance by fax machine or email. The offeror would have to use very precise wording if a specified means of communication is to be treated as mandatory. 02 Commuicaiton of Acceptance Unilateral offer A unilateral offer is one where one party promises something in return for some action on the part of another party. In relation to unilateral offers, revocation is not permissible once the offeree has started performing the task requested.
Reward cases are examples of such unilateral promises.
The offeror may dispense with the need for communication of acceptance. Such a waiver may be express or may be inferred from the circumstances. In Carlill v Carbolic Smoke Ball Co 1893, it was held that it was sufficient for the claimant to act on the offer without notifying her acceptance of it. 02 Commuicaiton of Acceptance Postal rules When the postal rules apply acceptance is completed as soon as the letter has been posted, even though it may be delayed or even lost altogether in the post.
• The use of the post is within the contemplation of both the parties • Letter must be properly addressed and stamped • If the offer stipulates a particular mode of communication, the postal rule may not apply. 02 Commuicaiton of Acceptance Adams v Lindsell 1818 The facts: The defendants made an offer by letter to the claimant on 2 September 1817 requiring an answer 'in course of post'. It reached the claimants on 5 September; they immediately posted a letter of acceptance, which reached the defendants on 9 September. The defendants could have expected a reply by 7 September, and they assumed that the absence of a reply within the expected period indicated nonacceptance and sold the goods to another buyer on 8 September. Decision: The acceptance was made 'in course of post' (no time limit was imposed) and was effective when posted on 5 September. 02 Commuicaiton of Acceptance Collateral contracts A collateral contract is a contract where consideration is provided by the making of another contract. There is a contract despite the absence of direct communication between them.
For example, if there are two separate contracts, one between A
and B and one between A and C, on terms which involve some concerted action between B and C, there may be a contract between B and C. 02 Commuicaiton of Acceptance Shanklin Pier Ltd v Detel Products Ltd 1951 The facts: The defendants gave assurances to the claimants that their paint would be satisfactory and durable if used to repaint the claimant's pier. The claimants in their contract with X for the repainting of the pier specified that X should use this paint. The paint proved very unsatisfactory. The claimants sued the defendants for breach of undertaking. The defendants argued that there was no contract between the claimants and themselves. Decision: The contract between the claimants and X requiring the use of the defendant's paint was the consideration for a contract between the claimants and the defendant. Example Question Which Two of the following statements describe the rules on acceptance of an offer ? A. Once an offer has been accepted a contract comes into existence B. Acceptance can be inferred from the conduct of the parties C. Acceptance only takes place once it has been communicated to the offeror D. A counter-offer may constitute acceptance Answer A. Once an offer has been accepted a contract comes into existence B. Acceptance can be inferred from the conduct of the parties Thank You 感谢您选择高顿网校 本节结束！
