The timing of acceptance


This topic is about the receipt rule vs. the postal rule! and also the battle of the forms
Flashcards by alan.10a, updated more than 1 year ago
Created by alan.10a about 9 years ago

Resource summary

Question Answer
When does acceptance take place? and is there an exception to the rule? Acceptance is made when it is received however, there is an exception to this rule known as the postal rule
What is the postal rule? This rule states that where acceptance is by post, communication takes place as soon as the acceptance is posted in the post box as seen in Adams v Lindsell
If the acceptance letter in the post is delayed, is the acceptance still effective? Yes as seen in Household Fire Insurance Co Ltd v Grant even if it is lost in the post, as long as it had been addressed properly, acceptance will be effective
Can you abuse the postal rule? NO, its use must be reasonable as seen in Holwell Securities v Hughes
What is the receipt rule? This rule provides that acceptance comes into effect when acceptance is received.
Can acceptance be revoked? According to Countess of Dunmore v Alexander yes,
What does the Entores case dictate? That if the communication of acceptance is ineffective due to the offeror, then there is still a contract however, if it is the offeree's fault then there is no contract, additionally if it's neither the fault of the offeror or the offeree then there is also no contract
In a battle of the forms, which terms are accepted? The last counter offer which is made as this is called the last shot approach in which every time there is a new offer of terms, the new set of terms act as an counter offer which demolishes the previous offer even if it states that other terms will not be accepted. Butler Machine Tools v Ex-Cell-O Corp
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