Acceptance

Acceptance
Acceptance is and unqualified expression of consent to the terms proposed by

the offeror. It can be expressed through words or behaviour.
Rules of Acceptance:
-
Acceptance must be in terms of the offer. If the terms change then it

becomes a counter offer.
Acceptance must be communicated to the offeror.
Acceptance must be made in response to an offer.
Acceptance must be made while the offer is still valid.
Acceptance must be in terms of the offer. If the terms change

then it becomes a counter offer:
Counter Offers
If you change the terms of the offer then you are making a counter offer which
can be accepted or rejected by the other party. It becomes a whole new offer and
it is there to kill off the original offer.
Hyde V Wrench (1840)
The defendant offered the claimant his farm for 1000. The claimant replied
offering 950 but the defendant refused. The claimant replied agreeing to the
original 1000 offer but the defendant never replied.
Held: it was held that there had been no contract as the offer of 950
was a counter offer which the defendant rejected. The original offer was
killed off when the claimant made the counter offer, the defendant is
under no obligation to carry through his original offer. SHOWS EXAMPLE
OF A COUNTER OFFER
A counter offer can be accepted by behaviour.

Brogden V Metropolitan Ry Co (1877)
Held: it was held that the MRC made an offer to which B made a counter
offer which was accepted by MRC through the action of MRC ordering
the coal. Lord Blackburn said that you accept a counter offer through
conduct. SHOWS HOW COUNTER OFFER CAN BE MADE THROUGH
CONDUCT
How do you know if your reply is a counter offer?

Stevenson, Jacques and Co V McLean
The defendant wrote to the claimant giving 40s per ton as the lowest price that
he would sell the iron to the claimant. The claimant wrote to the defendant but
he had no reply.
Held: it was held that the letter wasnt a counter offer it was just
clarification about the original offer. The defendant was just clarifying
what his lowest price would be, it was not an offer.
Battle of the Forms (small print including i.e. terms and conditions)
Butler V Ex-Cell-O Corp (1974)
In 1969 Saltos issued quotes offering to sell machine tools to buyers for 75,535
and it was set to be delivered in 10 months. Their terms and conditions said that
if the price were to go up the buyer would have to buy the higher price. These
terms and conditions were stated in the forms that the buyers had to return. The
buyer bought the tools and sent an acknowledgment slip which stated in their
own terms and conditions that they wouldnt pay any higher price. The seller
signed and retuned the acknowledgment slip. The tools went up by 2892 so the
seller told the buyer that they had to pay it.
Held: it was held in the COA that the contract had been made on the
buyers terms as the buyers offer (their terms and conditions on the
acknowledgment slip) had been a counter offer. The seller had replied
the acknowledgment slip which accepted the buyers offer so the
original offer had been killed off.
Acceptance must be communicated:

Lord Denning in Entores V Miles For Corp: If the acceptance is made clearly and
audibly but the offeror didnt hear because an aeroplane flew above them then
the offeror needs to get the accepter to repeat himself.
Accept by Silence?
Generally no. The offeror cannot say that if they get no reply then they will
assume that the other party accept the offer.
Felthouse V Bindley (1982)

SHOWS THAT AN OFFER CANNOT BE ACCPETED BY SIELNCE
Acceptance by Post
Adams V Lindsell (1818)
The defendant wrote to the claimant offering to sell fleeces of wool and they
needed an answer by post. The defendant mis-directed the letter so the post
ended up being delayed. The claimant finally received the letter and replies his
acceptance to the defendant. But the defendant, not having heard anything, sells
the wool. The defendant receives the claimants acceptance letter after he had
sold them.
Held: it was held that the contract was made when the claimant posted
his acceptance letter. You wouldnt know if you were bound until you
have received the offer of acceptance and then you wouldnt know if
they had received that letter. It can go on and on.
The postal rule can cause hardship to the offeror.

Household Fire and Carridge Accident Insurance Co (Ltd) V Grant
A letter of acceptance was posted out to the offeror, but they never received it. It
is unfair as the offeror doesnt know that they are bound by contract. But all the
offeror needs to put is need to reply in 10 days for example.
Instantaneous Forms
Over the telephone the general is to treat it as if you were face to face.
Emails are always in question. Its a form of mail but it can be instantaneous.
Acceptance in Ignorance of the Offer

E.g. Fred loses his cat and offers 200 reward for their return. Gary returns the
cat but he didnt know about Freds 200 reward offer.
In this case Gary isnt entitled to the reward.
But even if Gary did see the poster with the reward offer and returns the cat but
not for money but to impress a girl then he is still entailed to it as the contract
has been made.
Gibson V Procter (1891)
The defendant offers 25 reward to the person who gave information leading to
the conviction of a suspected criminal. The claimant had already given
information before the offer had been made.
Held: ??
Williams V Cavardine (1933)

The claimant gave information requested because she thought she was dying.
Held: it was held that she was entitled to the reward even though her
motive wasnt for the money.
Present in Mind
A big rule is that the offer must be present in mind during the act. For example,
Gary must be thinking about Freds offer when he returns the cat.
R V Clarke (1927)
Clarke was arrested for a crime even though he didnt do it. He had seen the
offer of the reward for the correct information but he only told the police the
correct information to save himself. Clarke had forgotten all about the reward
offer so it wasnt present in his mind when he gave the information.
Held: it was held that the offer hadnt been present in mind so he
wasnt entitled to the reward money.
Prescribed Method of the Acceptance

The acceptance must be communicated in a way that the offeror states but the
offeror must make the method clear. If they want the acceptance by post then
they must state that.
Manchester Piocesan Council for Education V Commercial and General
Investments Ltd (1969)
The MPCE wanted tenders for some work and said that the tender they accept
will be let know in writing. It took 4 months for MPCE to write to their chosen
tender. LOOK UP
Unilateral Contract
This is where one party promises to pay another party a sum of money if they do
something or if they refrain from doing something. E.g. Fred offering money for
the return of his cat
An offer in an unilateral contract can be withdrawn but only before the other
party acts. E.g. Fred cannot withdraw his reward offer after Gary returns his cat.
Daulia (sp) Ltd V Faur Millbank Nominees Ltd
LOOK UP
Carhill cannot say to the Carbolic Smoke Ball Company to give her the 100 if
she didnt have the flu. Both parties must complete their side of the deal.
Errington V Errington (1952)

A father bought a house for 750 and took out a mortgage for 500. His son and
daughter-in-law moved into the house and the father said that if they paid the
mortgage then they could keep the house. The son and daughter-in-law then
started to pay the mortgage. The father died and his personal representatives
wanted the house back and only wanted to pay back the son the 50 that he had
paid.
Held: it was held that the father and the son had a unilateral contract
so as long as the son carried on paying the mortgage like it was original
agreed with his father then the contract cannot be stopped. SHOWS
EXAMPLE OF AN UNILATERAL CONTRACT
Soulsbury V Soulsbury (2008)

LOOK UP
BUT
Laxer Ltd V Cooper (1941)

The claimant agreed with the defendant that if he introduced a purchaser who
would buy the defendants 2 cinemas for 185K then the claimant would get
commission. The claimant found someone but the defendant refused to go
through with the sale so the claimant didnt get any commission as the money
would have come from the completion of the sale.
Held: it was held that the contract was that the claimant would get
commission if the defendant did sell the cinemas. The claimant
shouldnt be entitled to the commission for the small amount of work
that he done.
Acceptance must be made while the offer is valid:

-
An offer may end before the acceptance takes place.

An offer may have a time limit and if it expires then the offer dies and the
offeror is not bound to accept any acceptance.
An offer can end by:

-
By a counter offer being made

The offer may be rejected
Offeror may die some exceptions e.g. Errington V Errington.
There may be an unreasonable delay but the acceptance must be within a

reasonable time. Reasonable time will be established by looking at the facts of
the case.
In an unilateral contract you cant change your mind once the act has begun.

Acceptance

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Acceptance

Uploaded by

Copyright:

Available Formats

Acceptance

Acceptance is and unqualified expression of consent to the terms proposed by

Acceptance must be in terms of the offer. If the terms change then it

Acceptance must be in terms of the offer. If the terms change

A counter offer can be accepted by behaviour.

How do you know if your reply is a counter offer?

Acceptance must be communicated:

Felthouse V Bindley (1982)

The postal rule can cause hardship to the offeror.

Acceptance in Ignorance of the Offer

Williams V Cavardine (1933)

Prescribed Method of the Acceptance

Errington V Errington (1952)

Soulsbury V Soulsbury (2008)

Laxer Ltd V Cooper (1941)

Acceptance must be made while the offer is valid:

An offer may end before the acceptance takes place.

An offer can end by:

By a counter offer being made

There may be an unreasonable delay but the acceptance must be within a

You might also like