3. Acceptance

• What is acceptance?

  It is the positive and unqualified confirmation of all the terms of the offer.
• What are the 4 elements of acceptance?

  1. Does it correspond exactly with the rules of acceptance
  2. Is it acceptance or counter offer
  3. Is it an acceptance rather than a response or request for further information
  4. Has it been communicated correctly
• What is the main rule of acceptance?

  It must mirror the offer. Called the mirror image rule. It means acceptance must correspond to the offer made, otherwise there is no valid contract.
• What is a counter offer?

  This is if the offeree adds new terms and conditions.
• Hyde v Wrench

  Wrench offered to sell his farm for a 1000 pounds to Hyde. (offer)

  Hyde offered to pay 950 (counter offer)

  Wench rejected it and sold to another party.

  Later Hyde accepted for 1000 pounds and claimed for breach.

  It was held that Hydes counter offer was amounted to rejection, no valid contract was formed. Later offering was only an offer, not acceptance.
• Jones v Daniel

  Offer to sell the land for 1450 pounds. Buyer accepted it and required a signed document of sale, details of method to pay and evidence of pile to property. The anciliarry terms amounted to a counter offer, and no contract had been made.
• Stevenson v Mclean (request for further information)

  The buyer wanted iron to be delivered in stages rather than all at once. Having heard nothing from the seller, buyer accepted the offer. But by then the seller had sold it to another third party. Held: It was only a mere inquiry about details and not a counter offer.
• Butler v Ex-cell-O corporation ltd

  The claimants quoted a price for industrial machinery together with a price variation clause. The defendants replied with an order stating its own terms but did not contain a price variation clause. This sent through return slip. Held that: Claimant ahd accept thed defendants counter offer through return of delivery slip, last shot that prevails.
• Felthouse v Bindley

  Uncle and nephew were negotiating for the sale of a horse. The uncle stated if i hear no more from you I shal consider the house mine. It was held that there was no contract between uncle and nephew as he had not accepted his offer.
• Adams v Lindsell case:

  • Seller put wool for sale and wanted acceptance by post
  • Buyer accepted by post on the same day as the offer was made
  • The letter was not received, and the seller sold it to a third party
  • Court held that a binding contract existed as acceptance took place at the time of posting
• Holwel Securities v Hughes case:

  • Defendant sent an order to purchase land to the claimant
  • It was stated that acceptance had to be notified in writing before a certain date
  • The claimants posted acceptance but defendants never received it
  • Court held that since acceptance must be notified in writing, there had to be actual communication of acceptance, so the postal rule did not apply
• Instantaneous forms of comunication

  Entores ltd v Miles far east corporation

  IN this case the instantaneous form of communication used was telex. Communication takes place on the day it was recieved, not transmitted.
• Brinkibon Stahag stahl

  HOL held that acceptance can take place only when the telex has been recieved once the office reopeened.