Law revision

• Acceptance

  Form of acceptance

  • Acceptance can be oral, written or by conduct
  • Offeror can stipulate mode of acceptance

  When is an offer communicated?

  • Face to face, or via phone is instantaneous

  Acceptance by fax, email or text message?

  • If sent during normal business hours - communication occurs when received
  • If sent outside business hours - communication occurs when the business opens
• Postal rule of acceptance

  • Acceptance is communicated when the letter is posed (Adams v Lindsell 1818)
  • Only applies to acceptance
  • Must be properly stamped, addressed and posted, and acceptance by post is reasonable
• Types of valid consideration

  Two types:

  • Executed consideration - occurs at the time of agreement (E.g. buying goods in a shop)
  • Executory consideration - occurs after the time of agreement (E.g. booking a restaurant table)
• Chapell v Nestle

  Held: injunction granted, the wrappers were part of the consideration.
• Carlill v Carbolic Smoke Ball Company 


  Held: an advertisement containing certain terms to get a reward constituted a binding unilateral offer that could be accepted by anyone who performs its terms.
• Caparo industries v Dickman


  Held: Duty of care was not owed
• Special relationship

  Any person or company that is an insider, affiliate or associate of:

  • the issuer
  • any person or company considering, evaluating or proposing a take-over bid of the issuer
• Domestic and social agreements

  Agreements between family members, friends and colleagues.

  Presumption = no intention to be legally bound

  Balfour v Balfour

  Presumption are rebutted if there is clear evidence that intention exists

  Merritt v Merrit

  Simpkin v Pays
• Constructive dismissal

  The employee terminates the contract, with, or without, notice in circumstances which are such that he or she is entitled to terminate it without notice by reason of the employer's conduct.

  Allows employees who resign to be "treated" as if they were dismissed, because they did so due to the action of their employer.
• Constructive dismissal - Conduct of the Employer

  Employment must prove to employment tribunal that:

  • The employer was guilty of a serious breach going to the root of the employment contract (Western Excavating Ltd v Sharp 1978)
  • The conduct must be sufficiently serious to entitle the employee to leave at once. (E.g. breaches or express contract, sick pay, holiday pay etc)
  • Employee must resign quickly or else any willingness to stay in their job may be treated as an acceptance of the employer's conduct.
• Constructive dismissal - examples

  Donovan v Invicta Airways (1970)

  • Held: Employee was constructively dismissed and awarded £900 damages

  Kevin Keegan v Newcastle United Football Club (2010)

  • Contract stated, the manager, would have final say on all player transfers but the club breached this by signing a player against his wishes
  • Held: Keegan awarded £2m in damages
• Constructive Dismissal - Example 


  Verbal abuse

  Isle of Wight Tourist Board v Coombes

  • Manager verbally abused secretary
  • Secretary resigned and claimed constructive dismissal
  • Held: Court said this was breach of the duty to treat with mutual respect and was conduct that entitled the employee to resign: She succeeded in her claim for constructive dismissal
• Constructive dismissal - examples

  Unilateral Alterations to Express Contract Terms

  Simmonds v Dowty Seals Ltd 1978

  • Held: Employer was guilty of unilateral altercation of Mr Simmond's contract terms = constructive dismissal

  Land Securities Trillium Ltd v Thornley

  • Unilateral altercation of contract term = constructive dismissal
• Conditions and Remedies for constructive dismissal

  Conditions

  • Must be an employee
  • Must have been continuously employed for 2 years
  • Must commence claim in Employment Tribunal within 3 months of resigning

  Remedies

  • Re-instatement or re-engagement or damages
  • Damages: Basic award, compensatory award, additional award