Contract Law: Acceptance of an Offer

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Questions and Answers

What was the key reason for the court's decision in Society of Lloyds v Twins regarding the cover letter?

The application form was incomplete.

The intention stated in the cover letter was accepted as valid.

The contract was found to be null and void.

The cover letter was deemed collateral and irrelevant to the contract. (correct)

In R v Clarke, what is emphasized about the acceptance of an offer?

Silence can imply acceptance.

Only written correspondence constitutes a valid acceptance.

Knowledge of the offer is essential for acceptance. (correct)

The offeree's motive must be disclosed.

In the context of bilateral contracts, what does Felthouse v Bindley demonstrate?

Silence can serve as a valid acceptance under certain circumstances.

Silence cannot be considered acceptance. (correct)

Postal acceptance is always valid.

Offerors can waive the need for communication in specific situations.

What is the implication of the case Gibbson v Proctor regarding knowledge of an offer?

Information must be given to the offeree directly to claim a reward. Signup and view all the answers

When can an offeror potentially retract a postal acceptance?

Before the acceptance reaches the offeree. Signup and view all the answers

What is typically required for an advertisement offering a reward to be considered a valid offer?

The conditions of acceptance must be clearly specified. Signup and view all the answers

What is the primary criterion for acceptance in unilateral contracts?

The acceptor must perform the requested act. Signup and view all the answers

What legal significance does communication of an offer hold in contract law?

The offer must be communicated for acceptance to occur. Signup and view all the answers

What is required for an offer to take effect?

It must be communicated to the offeree. Signup and view all the answers

How does revocation of an offer typically occur in personal service contracts?

By the death of the offeror. Signup and view all the answers

What constitutes a valid acceptance of an offer?

An unequivocal expression of intention that matches the offer terms. Signup and view all the answers

In the context of advertisements, what is a common understanding regarding their nature?

Advertisements are generally considered invitations to treat. Signup and view all the answers

What is the significance of communication in the acceptance of an offer?

Communication ensures the intention to accept is legally recognized. Signup and view all the answers

What happens if a third party attempts to revoke an offer?

The revocation is valid only if the party is reliable. Signup and view all the answers

How does the concept of invitation to treat relate to websites?

Websites are considered invitations to treat in most cases. Signup and view all the answers

Which statement is true regarding acceptance and the terms of the offer?

Acceptance must match the offer terms exactly. Signup and view all the answers

Under what condition does an acceptance become effective when using instantaneous communication methods?

When the acceptance is received and read Signup and view all the answers

In which scenario is it possible for silence to indicate acceptance?

When the offeree has given consent to use silence as acceptance previously Signup and view all the answers

Which of the following cases illustrates the Postal Acceptance Rule?

Adams v Lindsell Signup and view all the answers

What is a significant characteristic of a unilateral contract as highlighted in Carlil v Carbolic Smoke Ball?

Acceptance can occur by performing the stipulated act Signup and view all the answers

In the case of Household Fire Insurance v Grant, what was determined about the effectiveness of acceptance under the postal rule?

Acceptance is effective even if the letter never reaches the offeror Signup and view all the answers

What was the legal implication in the Henthorn v Fraser case regarding acceptance through mail?

Acceptance was valid since it was posted before the revocation was communicated Signup and view all the answers

Which of the following best describes the outcome of the Tenex Steamship v The Brimnes case?

Termination of the contract is effective once received, regardless of when it is read Signup and view all the answers

In the context of communication of acceptance, which of the following statements is inaccurate?

Instantaneous communications do not require reading for effectiveness Signup and view all the answers

Study Notes

Acceptance of an Offer

An offer is accepted when the offeree communicates an unequivocal expression of intention and assent to the exact terms of the offer.
Acceptance must be communicated to the offeror.
An offeror cannot waive the need for communication, even in cases of silence.
Acceptance can be withdrawn before it reaches the offeror, but this is subject to exceptions such as the postal acceptance rule.

The Postal Acceptance Rule

Acceptance is deemed effective when the letter of acceptance is posted, even if it never arrives.
This rule was established in Adams v Lindsell and upheld in Household Fire Insurance v Grant.
The rule applies to letters of acceptance where the offeror expressly or impliedly requests or contemplates acceptance by mail.
The rule does not apply to instantaneous modes of communication, such as email or telephone.

General Exceptions

An offeror can waive the requirement of communication, as demonstrated in Carlil v Carbolic Smoke Ball
The postal acceptance rule is an exception to the general rule of acceptance.
The offeror must be aware of the offer to accept it. This is illustrated in the case of R v Clarke, where the offeree did not know about the offer when he provided the information.

Communication of an Offer

An offer does not take effect until it is communicated to the offeree.
An offer is not valid if it is posted before it is communicated to the offeree.

Revocation

Offers can be revoked by the offeror before acceptance.
Revocation is effective when it is communicated to the offeree.
A third party can revoke an offer, but they must be reliable.
Personal service contracts are automatically revoked by the death of the offeror.

Unilateral Contracts

A unilateral contract is formed when the offeree completes the required act specified in the offer.
The offeror cannot revoke the offer once the offeree has begun performing the act, where the offeree was induced to perform the act by the offer.
Examples of unilateral contracts include advertisements offering rewards for lost items or information.

Instantaneous Communication

Contracts formed through instantaneous communication, such as email or telephone, take effect when and where the message of acceptance is received.
The postal rule does not apply to instantaneous communication.

Tenders

Tenders are generally considered invitations to treat, but can constitute a valid offer in certain circumstances.
The offer in a tender scenario is typically made by the party submitting the tender, rather than the party requesting the tender.

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Description

This quiz explores the principles of acceptance in contract law, including the necessity of communication and the postal acceptance rule. Participants will learn about relevant case law such as Adams v Lindsell and how the rules apply to different forms of communication. Test your knowledge of these fundamental legal concepts!