5241147
Description
Flashcards by Chantal Briancon, updated more than 1 year ago
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Created by Chantal Briancon
over 8 years ago
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| Question | Answer |
| What is required within an acceptance? | Once an offer has been accepted, a contract will be formed. There are 3 elements that must be established for acceptance to be established; the terms of the offer must match the terms of the acceptance, the acceptance must be communicated and the agreement on which the parties have both accepted must be certain. |
| FELTHOUSE V BINDLEY | This case established that silence will not amount to an acceptance within contract law. |
| ENTORRES V MILES FAR EAST | A contract is formed and becomes legally binding when acceptance is communicated to the offeror. |
| BROGDEN V METROPOLITAN RAILWAY CORPORATION | An acceptance does not have to be communicated verbally, it can be established through performance or conduct. |
| BUTLER V EX-CELL-O CORPORATION | Confirmed that acceptance may be communicated through performance or conduct as well as through verbal acceptance. |
| What is the postal rule? | The postal rule is a doctrine that is applied to the communication of an acceptance through the use of the post. This doctrine states that where a letter is properly stamped and addressed, the acceptance of an offer will take place at the moment at which the letter is posted NOT when it is received. |
| ADAMS V LINDSELL | Established the postal rule. |
| SCAMMEL & NEPHEWS V OUSTON | For the postal rule to apply to a situation, it must be established that the agreement between the two parties was certain. This is viewed objectively through the eyes of the reasonable man. |
| EGGLETON | After being viewed objectively, it was held that the agreement between the parties was not certain. Therefore, the postal rule did not apply to the situation. |
| What are the conditions of the postal rule? | There are 4 key conditions that must be established before the postal rule can be used; the use of the post must be reasonable, it must not have been excluded by either of the parties, the letter in question must be properly stamped and addressed and the use of the post must not manifest absurdity or inconvenience. |
| HOLWELL SECURITIES COMPANY V HUGHES | In this case, the offeror stated that he wanted to 'receive the letter' of acceptance before the acceptance took place. Therefore, the postal rule did not apply to this scenario. |
| HOUSEHOLD FIRE INSURANCE COMPANY V GRANT | Where the postal rule applies, it does not matter if the letter is lost or arrives late as acceptance of the offer takes place at the moment at which the letter is posted. |
| BYRNE V VAN TIENHOVEN | An acceptance letter cannot be withdrawn by simply post a subsequent letter. The acceptance takes place at the moment at which the letter is posted. |
| What is the receipt rule? | The receipt rule is often described as being the postal rule but for more modern forms of communication, such as telex communication. The receipt rule states that acceptance will take place only once the acceptance is received by the offeror. |
| ENTORRES V MILES FAR EAST | Under the receipt rule, acceptance takes place when the acceptance is received by the offeror. |
| THE BRINKIBON | Confirmed the case of Entorres v Miles Far East. |
| THE BRIMNES | Where the withdrawal of an acceptance takes place outside of normal office hours, the revocation of the acceptance takes effect from the moment the revocation is read. |
| MONDIAL SHIPPING | The reception of a contractual acceptance should be deemed to take place at the start of the next working day when it is sent by the offeree outside of general office hours. |
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