Acceptance

What is the importance of acceptance?
Once an offer is accepted, it is legally binding
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What does acceptance determine?
The place where the contract is formed, this is a major factor for the determination of the applicable law. It also determines the time from which it has legal effect
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What constitutes a valid acceptance? (three things)
1. Mirror image rule- must be unconditional and correspond with exact terms of the contract (no additions or changes) 2. Offeree must know the offer. 3. As general principle, acceptance must be communicated to the offeror.
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What is a counter-offer?
making a new offer by altering the terms in an offer. This is a valid offer, but it terminates the original offer
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What is a good case to show a counter-offer?
Hyde v Wrench [1840] D offers to sell farm for £1000, P offers £950, D rejects offer, P then agrees £100. There is no legally binding contract here
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What does 'Battle of the forms' mean?
commercial parties often exchange a number of offers and counter-offers during negotiation, each stating that they are contracting on their standard terms.
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Why can this make things complicated?
It becomes uncertain as to who is the offeror and who is the offeree
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What is an example of this?
Butler Machine Tool Co Ltd v Ex-Cell O Corperation (England) Ltd [1972]
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What happened in this case?
D intended to sell a machine to P and sent standard contract form to P. P replied saying 'please send t&cs below' and attached a tear-off slip which D filled in and then sent back
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What is the doctrine of last shot?
The party providing the last addition to the terms is the offeror
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What are the main methods of acceptance?
Oral and written
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What are other methods?
Acceptance by conduct e.g. Brogden v Metropolitan Rly [1887], prescribed method of acceptance
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does silence constitute an acceptance?
No, but it does force the offeree to respond e.g. Felthouse v Bindley [1867]
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How do you accept a unilateral offer?
By fulfilling the performance
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Awareness of the offer
Offeree must know of the offer when accepting. Cross-offers do not lead to a binding contract
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How does communication affect acceptance?
A contract is only valid when brought to the attention of the offeror. It is difficult to prove acceptance without communication. it is unfair for the offeror to be bound without knowing it.
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What happens if the acceptance isn't received because of the offeror's fault?
It is still binding
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Are there any exceptions?
Waiver of communication requirement- in a unilateral contract, the performance of the act constitutes acceptance, there is no need to communicate the fact. The postal rule- when acceptance is made by post
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What is specific performance?
Making a party perform their part of the bargain
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What is the unidroit principle?
These Principles set forth general rules for international commercial contracts. They shall be applied when the parties have agreed that their contract be governed by them.
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What is forbearance?
Leniency because it provides a practical benefit. e.g. during the economic crisis, some banks provided forbearance because it would not have been a practical benefit to evict people from their homes
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Other cards in this set

Card 2

Front

What does acceptance determine?

Back

The place where the contract is formed, this is a major factor for the determination of the applicable law. It also determines the time from which it has legal effect

Card 3

Front

What constitutes a valid acceptance? (three things)

Back

Preview of the front of card 3

Card 4

Front

What is a counter-offer?

Back

Preview of the front of card 4

Card 5

Front

What is a good case to show a counter-offer?

Back

Preview of the front of card 5
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