Contract (LLB) - Acceptance

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What is acceptance?
Defined in Chitty on Contracts it is ‘final and unqualified expression of assent to the terms of an offer’.
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Can silence amount to acceptance? Give a case example.
No it cannot, unless it is absolutely clear that acceptance was intended. Felthouse v Bindley [1862]
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How are unilateral contracts usually accepted?
They are usually accepted by conduct. There is no acceptance until the relevant act has been completely performed.
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What case shows that conduct can amount to acceptance?
Brogden v Metropolitan Rlwy Co.
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What case shows that acceptance must be unconditional?
Tinn v Hoffman (1873) Acceptance must be acceptance of the precise terms of an offer.
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What is the general rule for acceptance when there has been a long process of negotiations?
The general rule is that the 'last shot' wins. Whose terms and conditions have been accepted will also be determined through the 'last shot' wins rule.
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What case evidences the general rule that the 'last shot' wins?
British Road Services v Arthur V Crutchley & Co Ltd (1986)
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What case shows that the 'last shot' rule will not always succeed?
Butler Machine Tool Ltd v Ex-Cell-0 Corp (England) Ltd [1979]
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What further cases show that the 'last shot' rule should not & will not always succeed?
Tekdata Communications Ltd v Amphenol Ltd [2010] & the Scottish case of Specialist Insulation Ltd v Pro-Duct (Fife) Ltd [2012]
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If an offeror states that his or her offer must be accepted in a certain way, can you accept it via a different method? Give a case example.
Yes you can, providing the method of acceptance is equally effective. Such a method should not be slower than the specified method. Tinn v Hoffman (1837)
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What case shows that acceptance must be communicated? For example, if A accepts B's offer, but a noisy train prevents B from hearing A's acceptance, it will not have been effectively communicated.
Entores Ltd v Miles East Corporation (1955)
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What three exceptions are there to the rule that acceptance must be communicated?
1. Terms of the offer. 2. Conduct of the offer. 3. The postal rule
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An offer may state or imply that acceptance need not be communicated to the offeror, however which case shows that it is not possible to bind an offeree unless he/she indicates that the offer is not accepted?
Felthouse v Bindley [1862]
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Does communication have to take place for unilateral contracts?
Strictly speaking no. Completion of the act is usually deemed sufficient acceptance.
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Conduct of the offeror may still amount to effective acceptance. In what situation would this be the case? Give a case example.
If the offeree accepted the offer over the phone, but the offeror didn't hear and failed to ask the offeree to repeat the acceptance, this would still amount to acceptance. The Brimmes (1975)
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What is the postal rule? Give the key case example.
Adam v Lindsell [1818] - An acceptance by post takes effect once it has been posted, rather than when it is communicated.
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The use of the postal service must be reasonable. Reasonability will be deduced from the method of acceptance and circumstances of the case. Give a case example.
Henthorn v Fraser (1892)
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What three exceptions to the postal rule are there?
1. Offers requiring communication of acceptance. 2. Instant methods of communication. 3. Misdirected acceptance
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A term of the offeror's offer may be communication of acceptance. In which case, the postal rule will not apply. What case evidences this?
Holwell Securities Ltd v Hughes (1974)
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When using instant methods of communication the postal rule will not apply. You must ensure the acceptance is effectively communicated. What case shows this for emails?
Thomas v BPE Solicitors (2010) - The postal rule will not apply to acceptance via email. This statement is however only obiter.
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What is the rule for misdirected acceptance?
The rule is that if the acceptance is lost or delayed because of the offeree's carelessness then the postal rule should not apply. Note: there is no specific authority for this principle.
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What academic put forward a suggestion to better this rule and what did he say?
Treitel. He said that a better rule would be that if the post was lost or delayed because of the offeree's carelessness, that acceptance should take place, just at a time when it is the least advantageous for the party who misdirected the acceptance
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Is ignorance of the offer valid acceptance? Give authority for this.
Generally ignorance is not valid acceptance.If you are unaware of the offer, you cannot come to an agreement, the offer and ignorant acceptance is merely coincidental and thus does not form a contract. Gibbons v Proctor
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What Australian case shows that forgetting about the offer and therefore being ignorant at the time of acceptance is still acceptance in ignorance of the offer and therefore no accepetance at all?
R v Clarke
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What case shows that providing the party knows of the offer, then motive is not relevant?
Williams v Carwardine
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Is there valid acceptance when two offers cross over? Back your answer up with a case.
It is thought that there is no valid acceptance when two corresponding offers cross over as there is ignorance of each other's offers. There is no authority for this rule, but the obiter in Tinn v Hoffman stated this.
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When is acceptance formed and what are the two exceptions to the general rule?
Generally acceptance takes place upon communication. The two exceptions however is the postal rule (it takes place upon posting) and electronic communications.
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What does s.11 of the Electronic Communications Act 2000 state?
Electronic contracts are concluded when the customer has both 1. received an acknowledgement that their acceptance has been received, and 2. confirmed their receipt of that acknowledgement. This rule applies unless parties state otherwise.
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Other cards in this set

Card 2

Front

Can silence amount to acceptance? Give a case example.

Back

No it cannot, unless it is absolutely clear that acceptance was intended. Felthouse v Bindley [1862]

Card 3

Front

How are unilateral contracts usually accepted?

Back

Preview of the front of card 3

Card 4

Front

What case shows that conduct can amount to acceptance?

Back

Preview of the front of card 4

Card 5

Front

What case shows that acceptance must be unconditional?

Back

Preview of the front of card 5
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