LLB 120 Lecture Notes - Lecture 4: Posting Rule, Fax, Paull
Week 4: 73-91
Acceptance
Conduct constituting an acceptance
• An acceptance is an unqualified assent to the terms of an offer
• Whether a real meeting of the minds is required depends in theory on whether one
adopts an objective or subjective approach.
- Subjective – no contract is formed unless there was a real consensus between
parties
- Objective – looks only to the external manifestation of consent, disregarding the
actual state of mind of the parties
• See Smith v Hughes – pg 74 – Blackburn J – if hateer a mans real intentions may
be, he so conducts himself that a reasonable man would believe that he was
assenting to the terms proposed by the other party, and that other party upon that
belief enters into the contract with him, the man conducting himself would be
euall oud
• What matters is what each party by words and conduct would have led a reasonable
person in the position of the other party to believe
• See Fitness First (Australia) Pty Ltd v Chong – by signing the form, Ms Chong had
manifested her assent to the printed terms and it was irrelevant that there was no
true consensus ad idem between the parties
Consciousness of the offer
• In bilateral contracts it is clear that the offeree deliberately accepted the offer
• Different with unilateral contracts – if an offeree performs an act requested by an
offeror without intending to accept the offer, has a contract been formed?
• See Crown v Clarke – pg 75 – 1000-pound award for information leading to an arrest.
Clarke gave a statement and tried to claim the award however the Crown refused to
pa it he did’t ake his stateet ith a ie of laiig the ead ut athe to
clear himself of the murder charge. High Court held that a unilateral contract will be
made where the acts required for acceptance are performed on the faith of the offer
• Acceptance is essential because without it there is no agreement and with no
agreement there is no contract
Communication of acceptance
The general rule
• A otat is foed he the offeee’s aeptae is eeied the offeror
• Notification is important because it establishes the minds of the two parties have
come together and formed a consensus
• See Latec Finance Pty Ltd v Knight – Mr Knight signed a hire-purchase agreement
relating to a television set. The document accepted an offer by the offeror which was
ieoale fo a peiod of 7 das ad as’t idig util siged the opa.
The opa’s aeptae of the offe as’t ouiated to Kight. Kight
found the set unsatisfactory and returned it before instalments were paid. The
company sought to enforce the agreement. NSW Court of Appeal found there was
no contract
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