Offer (con.) & Acceptance
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offer must | show 🗑
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show | Knowledge is sufficient - motive is not relevant
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show | Vague offers cannot be accepted/The terms of an offer must be fixed/A offered to employ B “at a West End salary to be arranged”. It was held that there was no contract because of uncertainty.
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Hillas v Arcos (1932) | show 🗑
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show | Alternatively courts have been prepared to ignore meaningless words in order to prevent an otherwise certain agreement from failing.
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Walford v Miles [1992] | show 🗑
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show | This, however, needs to be distinguished from a so-called ‘lock out’ agreement which if sufficiently limited in time may be enforceable.
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An offer can come to an end, or cease to exist, in the following circumstances: | show 🗑
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show | Revocation of an offer must be communicated to the offeree before acceptance to be a valid revocation/Byrne v Van Tienhoven (1880)
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situations where revocation of an offer need not actually be communicated to the offeree | show 🗑
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1)Where offers are made to the world at large | show 🗑
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2)In the case of an organisation | show 🗑
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3)Where communication does not occur because of the offeree’s conduct, eg | show 🗑
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Dickinson v Dodds (1876) | show 🗑
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show | part-performance constitutes acceptance/thus preventing X from revoking his offer once Y has started walking - but that consideration is only provided by actually reaching York/ Errington v Errington [1952]
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show | If the offeree knows of the offeror’s death, he cannot accept/
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show | If the offeree does not know that the offeror has died, the offer continues in existence and can be accepted provided that the contract is capable of being carried out by the offeror’s personal representatives/Bradbury v Morgan (1862)
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(ii)Death of either party before acceptance | show 🗑
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(iii)Failure of a condition to which the offer was made subject: | show 🗑
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show | Similarly a condition may be implied: eg (HP of a car - condition implied that the car would be in substantially the same condition at acceptance as it was at time of offer.)
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show | If an offer is made for a definite period only, it will automatically come to an end at the end of that period if it has not been accepted./If no definite time is stated, it will lapse after a reasonable time - this will depend on the circumstances
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acceptance | show 🗑
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show | /Acceptance must be unconditional and unqualified/A counter-offer is not an acceptance
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counter-offer | show 🗑
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show | a request for information is not a counter-offer, ie it does not destroy an offer
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battle of forms | show 🗑
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Acceptance must be | show 🗑
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show | according to the method prescribed by the offeror./Whether that is expressed or implied, eg a postal acceptance where a telephone number was given would not be a valid acceptance.
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Tinn v Hoffman (1873) | show 🗑
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show | method of acceptance was valid and was no disadvantage to the offeror, as the method stipulated was only to ensure delivery and that had happened
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show | The offeror cannot insist that silence constitutes acceptance
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Acceptance must | show 🗑
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show | This rule states that, where acceptance is by post, communication takes place as soon as the acceptance is posted/Adams v Lindsell (1818)
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show | It follows that there will be a contract even where the letter of acceptance is delayed in the post and even where the letter is lost in the post:
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show | 1.it must be reasonable to use the post/2.parties must not have excluded it/3.letter must be properly addressed and stamped/
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Holwell Securities v Hughes [1974] | show 🗑
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Lord Denning in Entores Ltd v Miles Far East Corp [1955] | show 🗑
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Lord Denning in Entores Ltd v Miles Far East Corp [1955] | show 🗑
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Can posted acceptance be revoked by speedier method before receipt? | show 🗑
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The Scottish case of Dunmore v Alexander (1830) | show 🗑
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show | A strict application of the postal rule would not permit such withdrawal./However, such an approach is regarded as inflexible.
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