Lecture 4 - Acceptance, Intention to Create Legal Relations

• What is the traditional analysis of agreement in contract law?

  Agreement is analyzed in terms of offer and acceptance.
• What was held in Byrne v Van Tienhoven (1880) regarding revocation of offers?

  Revocation is effective only when communicated to the offeree before acceptance.
• What was held in Routledge v Grant (1828) regarding provisional offers?

  A provisional offer can be withdrawn at any time before acceptance, even if a time limit is set.
• What is the traditional analysis of agreement in contract law?

  Agreement is analyzed in terms of offer and acceptance.
• What constitutes acceptance in contract law?


  Acceptance is a final and unqualified expression of assent to the terms of an offer.
• What was the outcome of Hyde v Wrench (1840)?

  The original offer was terminated by the counter-offer.
• What can the offeror do after a counter-offer is made?

  The offeror can make a new offer on the same terms but is not obliged to do so.
• What was the key issue in Stevenson v McClean (1880)?

  C's reply was a request for information, not a counter-offer.
• What must happen for revocation of an offer to be effective?

  Revocation must be communicated to the offeree.
• How can acceptance be implied in contract law?

  Acceptance can be implied from conduct rather than explicit communication.
• What happens if an offer is not accepted before it is revoked?

  The original offer is no longer available for acceptance.
• What is the "Battle of the Forms" in contract law?

  • Occurs when two businesses attempt to contract on differing standard terms.
  • If terms do not coincide, there is no contract and a counter-offer is made.
  • A contract may arise if one party unwittingly accepts the other's counter-offer by conduct.
• What was the outcome of Brogden v Metropolitan Railway Co. (1877)?

  Brogden's insertion of an arbitrator's name constituted a counter-offer accepted by conduct.
• What stipulation can an offeror make regarding acceptance?

  The offeror can stipulate a particular method of acceptance that must be complied with if mandatory.
• What is required for a party to accept an offer?

  A party must have knowledge of the offer to accept it.
• What was the outcome of R v Clarke (1927)?

  Clarke was not entitled to the reward because he had forgotten about the offer.
• What was the ruling in Williams v Carwardine [1833]?

  C was entitled to the reward because she was aware of the offer and complied with its terms.
• What is the general rule regarding communication of acceptance in contract law?

  • Acceptance must be communicated by a positive act.
  • Silence does not constitute acceptance.
• What was the outcome of Felthouse v Bindley (1862)?

  There was no contract because silence does not constitute acceptance.
• What does 'subject to contract' mean in agreements?

  • Indicates parties do not intend to be bound until a formal contract is signed.
  • Courts generally view these agreements as non-binding.
• When is a contract normally formed?

  A contract is formed when effective acceptance has been communicated to the offeror.
• What are the exceptions to the time of formation of a contract?

  1. Acceptance in a unilateral contract by performance.
  2. The postal rule.
  3. Instantaneous communications.
• What is the postal rule in contract law?

  Acceptance is deemed complete when the letter of acceptance is posted, not when received.
• What happens if a letter of acceptance is lost in the post?

  The postal rule applies even if the letter is lost in the post.
• What can override the postal rule?

  An express intention by the offeror overrides the postal rule.
• What was the outcome of Holwell Securities v Hughes (1974)?

  Acceptance was not valid because 'notice' meant communication.
• What is the significance of instantaneous communications in contract law?

  • Acceptance occurs when the message is received.
  • The postal rule does not apply to instantaneous communications.
• What was the ruling in Entores v Miles Far Eastern Corporation (1955)?

  The acceptance did not take place until it was received by C in London.
• What was the outcome of Brinkibon v Stahag Stahl (1983)?

  The contract was made in Vienna as the acceptance was received there.
• What did the HC state in Thomas v BPE Solicitors [2010]?

  The postal rule would not apply to a contract made by email.
• How do website contracts function under the Electronic Commerce (EC Directive) Regulations 2002?

  • Websites are generally invitations to treat.
  • The customer's order is the offer.
  • Acceptance occurs after payment details are transmitted and confirmed.
• What is the consumer's right to cancel under the Consumer Contracts Regulations 2013?

  • Consumers have a 'cooling-off' period of 14 days to cancel contracts made at a distance.
  • Suppliers must reimburse all payments within 14 days if cancellation occurs.
• What are the exemptions to the consumer's right to cancel?

  • CDs, DVDs, or software with broken seals.
  • Perishable items and tailor-made goods.
  • Accommodation, transport, vehicle rental, and specific date activities.
• What is required for a contract to be legally enforceable?

  There must be an intention to create legal relations.
• What did Lord Stowell state about contracts in Dalrymple v Dalrymple?

  Contracts must not be mere matters of pleasantry and should have serious effects.
• What is the presumption regarding domestic and social agreements?

  The courts presume there is no intention to create legal relations.
• How does the court determine the intention in domestic agreements?

  The court applies an objective test based on the situation of the parties.
• What was the outcome of Balfour v Balfour (1919)?

  The promise was not legally enforceable.
• What distinguished Merritt v Merritt from Balfour v Balfour?

  The parties were separated and bargaining keenly, indicating intent to create legal relations.
• What was the court's ruling in Jones v Padavatton (1969)?

  It was a domestic agreement with no intention to create legal relations.