Friday, June 17, 2016

Contract Law - Offer and Acceptance

Guys, after pursuing 4 CCIEs I would like to study something different.  While I am still in the IT career, I am doing a bit of legal study now and I have prepared some notes myself for my examination.  This is one of the table that I've made for my own revision listed out the case summaries and the related principles for Offer and Acceptance in Contract Law.

PrincipleCase Name / Definition
Agreement is assessed objectivelyStorer v Manchester City Council, CA [1974]

Lord Denning - In contracts you do not look into the actual intent in a man's mind
Requirement of Offer and AcceptanceGibson v Manchester City Council, HL [1979]
Gibson Principle (must know)The court will analyse the existence of agreement in terms of Offer and Acceptance unless there are "exceptional circumstances".
Definition of Offer (must know)An indication of a willingness to be bound on certain terms
Definition of Acceptance (must know)Final and unqualified assent to the terms of the offer
Famous unilateral offer caseCarlill v Carbolic Smoke Ball Co - CA [1893]
Unilateral offerOnly one party makes a promise. The offeree performs some act as acceptance which need not be communicated to the offeror
Definition of Invitation to TreatAn invitation from one party for the other party to make an offer
Display of Good: Bilateral OffersPharmaceutical Society of GB v Boots [1953]
Advertisment (Hen)Partridge v Cittenden [1968]
Display of Goods in Shop (Knife)Fisher v Bell [1960]
An offer must be ...communicated to the offeree, no exceptions
An offer may be withdrawn at...any time before Acceptance
Revocation by Offeror before Acceptance case (must know)Payne v Cave
promise (without consideration) to keep it open for a certain timeRoutledge v Grant [1828]
The revocation must be actually communicated to the Offeree (must know)Byrne v Van Tienhoven
Offer opens for a reasonable time if no deadline setRamsgate Victoria Hotel v Montefoire
Communications of the revocation of offer can be made by reliable 3rd partyDickson v Dodds
Any counter offerscancels the original offer
Counter Offers caseHyde v Wrench
Enquiry is not counter offerStevenson v McLean
Acceptance must be ... (must know)actually communicated to the offeror unless it is a unilateral contract or the postal rule apply
General rules of Acceptance communicationEntores Ltd v Miles Far East Corp CA [1955]
Silence never an AcceptanceFelthouse v Bindley
Acceptance by ConductPickfords v Celestica
Postal Rule (acceptance only)Adams v Lindsell [1818]
If Offeror insists on a particular method, the offeree must complyYates v Pulleyn
If no instruction / recommendation, then Acceptance must be communicated by a reasonable methodQuenerduaine v Cole
Instantaneous communications - contract is complete when the acceptance is recevied by the offeror. No universal rule in instantaneous communicationBrinkibon HL [1983]
Telexed message effective when received during office hours. Effective when it could be read, rather than when it is in fact read. Mostly applied to businessThe Brimnes CA [1975]
Email acceptance - effective on receipt, strong obiter statementThomas v BPE Solicitors [2010]
Postal acceptance - only if it is reasonable to use postHenthorn v Fraser [1892]
Postal rule does not apply to offers, revocation of offers, counter-offers or recalls of acceptanceByrne v Van Tienhoven
Express terms in contract, acceptance must reach the offeror, postal rule not applyHolwell Securities v Hughes
Revocation of a unlateral offerDaulia v Four Millbank Nominees
Mere supply of informationHarvey v Davey
No offer can be accepted if the offeree has notice of the offeror's deathCoulthart v Clementson

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