Contract Law: Acceptance

Contract Law: Acceptance

1. Acceptance is a key part of any contact. Once an offer is accepted a legally binding contract can be established.

   • Acceptance is a final and unqualified expression of assent to the terms of an offer.
   • Acceptance is distinguished from a counter offer. A counter offer eliminates any previous offer creating a new scenario. creating such an offer is rejection of the previous offer hence terminating its existence.
     • Hyde v Wrench 1840
     • however a request for information does not constitute a counter offer
       • Stevenson v Mclean (1880)
     • This creates a problem when businesses engage in business. The two business may attempt to contract on their own terms that do not coincide. This then, should terminate the offer? there is however more than outcome
       • where the two terms do not coincide, B rejects A's offer. this means there is no contract
         • B has accidentally created a counter offer. A may now reject rightfully or they may accept, unwittingly meaning they accept B's terms creating a contract on B's terms, or a could reply issuing another counter offer.
           • Brogdon v Metropolitan Railway Co. (1877)
             • Butler machine tool Co. ltd v ex-cell-o corporation (1979)
             • This case also shows acceptance can be implied from conduct

2. MANNER OF ACCEPTANCE

   • A party can only accept an offer if they have knowledge of it!
     • R v Clarke (1927)
   • The offeror can stipulate a certain method of acceptance and must be conducted as stated if made mandatory however if it is nearly advisory then other adequate forms of acceptance will suffice
     • Manchester Diocesan council for Education v Commercial & general investments ltd (1970)
   • Acceptance must be communicated by some form of positive act
     • Silence is not normally a sign of acceptance : Felthouse v Bindley (1862)
   • if the post is deemed the correct form of acceptance then the acceptance is deemed complete as soon as it is posted.
     • Adams v Lindsell (1818)
     • Entores v Miles far Eastern Corporation (1955)
     • However it is possible to override the rule with express intention you don not want it to apply. Howell Securities v Hughes (1974)
   • Where the words subject to contract are used in proceedings it means the terms will not be enforceable unless formally signed.
     • Chillingworth v Esche (1924)
     • However where they are used in a "strong and exceptional manner" the courts will not give them their face meaning.
       • Alpenstow v Regalian Properties (1985)

3. Cancellation rights

   • Usually after acceptance the contract is legally binding. However under the Consumer Protection (Distance Selling) Regulations 2000 allows for a 7 day cooling off period for any contracts accepted at a distance by either post, letter and so on.
     • This excludes contracts for land, Construction agreements, financial services contracts, Vending machine contracts, Food delivery and leisure tickets e.g. holidays.