OCR A2 Law - The Law of Contract - Formation of a Contract - Acceptance (1)

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  • Created by: Majid
  • Created on: 28-03-13 11:34

Acceptance (1)

Intro/Define: The essay/problem/dilemma involves the law on Contract, in particluar the law on Acceptance. When forming a contract, 4 essential elements are needed. They are: Offer, Accpetance, Considerations and Intention. An Offer is a definite promise to be legally bound, and Acceptance is the unconditional assent to all the terms of the offer. It's necessary to draw a distinction between and offer and an Invitation To Treat (ITT), which is merely an openinig of negotiations - not capable of being accepted.  This essay specifically focuses on the law of acceptance. Basic rule: For acceptance to be effective, it must be communicated to the offeree/offeror. Therefore, silence will never amount to acceptance. A case to illustrate this is "Felthouse v Bindley". In this case and uncle wrote to his nephew to buy his horse (offer), however the acceptance was never communicated, so there was no contract. Also, acceptance can occur when there has been previous dealings between the parties. This can be seen in the case of "Hillas v Arcos". In this case a contract was made for the sale of wood in 1930, where everything was specified. In 1931 the buyer had the right to buy the wood again in 1931 but no price was specified. Therefore, the courts held there was a contract and they filled in the gaps in 1931. There are 3 basic principles regarding accpetance: 1. If the offeror prescribes a certain method, that must be used, otherwise the contract won't be binding.2. If there is no prescribed method stated, then the 'Mirror-Image' rule must be used. 3. However, any other, method will suffice which is no less advantageous to the offeror. A case to illustrate this is "Yates v Pulleyn". In this case an offer was made asking for acceptance via registered/recorded delivery. Acceptance was made by oridinary post. It was held there was a contract.AO2: These rules are fundamental as if they aren't followed, the offerors won't know that a contract exists.

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