Acceptance

• Acceptance - the final and unconditional agreement to all the terms of the offer
• How do you accept an offer?

  Acceptance can be in any form, provided it is definite and communicated to the offeror. It does not have to be in the same format, so an email can be responded to by a test, letter, telephone, call

  However, acceptance cannot be by silence, there must be some positive act for acceptance. (Felthouse v Bindley)
• When does acceptance take place?

  The actual time of revocation of an offer is critical. Equally important with acceptance. The general rule is that acceptance takes place when the acceptance is communicated to the offeror.
• Three ways of accepting an offer that need special attention:

  • Acceptance by conduct
  • Acceptance by use of the post - the postal rules
  • Electronic methods of communication
• Acceptance by conduct

  Can be seen in Carlill. (Reveille independent v Anotech) - reflects what occurs quite often in business contracts - the job begins before the formal contract is agreed in all its detail, with numerous offers and counter offers
• Acceptance by use of post - postal rules

  The postal rules were developed in the 19th century to deal with the problem of when a contract came into existence and where the loss should fail if a latter is not delivered correcty

  Rule also adapted the idea that one you have posted a letter: you cannot get it back
• The postal rules:

  Only applies to letters of acceptance, not offers or counter offers

  1. The rules only apply if post in the usual or expected means of communication
  2. The letter must be promptly addressed and stamped
  3. The offeree must be able to prove the letter was posted
• The postal rules (Adam v Lindsell)

  If the rules apply, acceptance takes place at the moment the letter is properly posted. The rules were set out in (Adam v Lindsell)
• Electronic methods of communication

  The principle is that acceptance, apart from the postal rules, occurs when the offeror is awre of the acceptance. Can be seen in (Entores v Miles Far East) in Lord Denning's statement
• Electronic methods of communication:

  Fax, text and email are more modern forms of communication, and the same problems and principles very often apply. An offer is accepted provided that

  1. the person signing the document intends to authenticate the document, and
  2. any formalities relating to executing that document are satisfied such as clicking on an icon in a website accepting terms and conditions
• Electronic methods of communication

  The question remains as to whether actually reading of the email/tax/text is required before acceptance.

  Consumer protection (distance selling) reugalations 2000 gives consumers a number of rights which were added to the Consumer Rights Act 2015
• Evaluation for both offer and acceptance

  • Contractual formalities in Commerce
  • Offer vs Invitation to treat
  • Duration of offer
  • Communicating acceptance
  • Challenges in economic contracting
• Contractual formalities in commerce

  The traditional approach emphasising distinct offer and acceptance has been criticised for being too rigid, failing to reflect the realities of commercial practices. (Gibson v Manchester city council)

  Link to the question = This rigidity contrasts with the need for flexibility in commerce, indicating a potential need for reform to accommodate modern business practices.
• Offer vs Invitation to treat

  The general rule that advertisements and goods displays are invitations to treat has led to ambiguities and controversial cases. (Fisher v Bell) and (Partridge v Crittenden)

  Link to the question = The ambiguity in this distinction raises questions about the clarity and fairness of the law, especially in the context of consumer protection.
• Duration of offer

  Distinguishing between a counter offer and a request for information can be confusing, and the concept of a 'reasonable time' for offer duration is vague. (Stevenson v McLean) and (Routledge v Grant)

  Link to the question = This vagueness and confusion highlight the need for clearer guidelines to ensure fairness and certainty in contractual negotiations.
• Communicating acceptance

  Evolving communication technology poses challenges to the traditional rules of contract acceptance, especially in the context of silence, postal rule, and electronic communications.

  (Felthouse v Bindley)

  Link to the question = The adaptation of law to technology advancements is essential for clarity and fairness in the process of contract formation.
• Challenges to electronic communication

  The formation of contracts online and the validity of electronic communications and signatures introduce new complexities in contract law. (Neocleous v Rees)

  Link to the question = These challenges demonstrate the necessity to update legal frameworks to adequately address the realities of electronic contracting and consumer protection.