LAW2101 Lecture Notes - Lecture 2: Fax, United Nations Commission On International Trade Law, Erms
LAW2101'CONTRACT'A'-'CASE'SUMMARIES'AND'KEY'POINTS'
!
TOPIC'2:'ACCEPTANCE'
Manifestation'of'willingness'to'be'bound'by'the'terms'of'an'offer'made'in'a'manner'invited'or'required'by'
the'offer'
OBJECTIVE'APROACH'v'SUBJECTIVE'APPROACH:'RELATIONSHIP'BETWEEN'THE'OFFER'AND'ACCEPTANCE'
!"#$%&'()*$+%,'-+..'/%'/#012').$3#043'$3%*%'-),'1#$'5%%$+14'#6'5+12,'7+8%8'$3%*%'-),'1#'consencus'ad'idem9'
),'.#14'),'$3%*%'+,')1'#0$-)*2'5)1+6%,$)$+#19'7:/;%<$+=%'>3%#*?9'
Case'
Findings'
Smith&v&Hughes'(1871)'LR'6'QB'597'
• @0?%*')4*%%2'$#'A0*<3),%')'B0)1$+$?'#6'#)$,'#1'
$3%'6)+$3'#6'$3%',)5A.%'A*#=+2%2'/?'$3%',%..%*&
• @0?%*'-*#14.?'/%.+%=%2'$3%',)5A.%'$#'/%'#.2'
#)$,C'-3%1'+1'6)<$'$3%?'-%*%'1%-'#)$,')12'-%*%'
01,0+$)/.%'6#*'/0?%*D,'A0*A#,%,&
Ø Approach'(Blackburn'J)'(Queen’s'Bench):'EF6C'
-3)$%=%*')'5)1G,'*%).'+1$%1$+#1'5)?'/%C'3%',#'
<#120<$,'3+5,%.6'$3)$')'*%),#1)/.%'5)1'-#0.2'
/%.+%=%'$3)$'3%'-),'),,%1$+14'$#'$3%'$%*5,'
A*#A#,%2'/?'$3%'#$3%*'A)*$?C')12'$3)$'#$3%*'
A)*$?'0A#1'$3)$'/%.+%6'%1$%*,'+1$#'$3%'<#1$*)<$'
-+$3'3+5C'$3%'5)1'$30,'<#120<$+14'3+5,%.6'
-#0.2'/%'%B0)..?'/#012'),'+6'3%'3)2'+1$%12%2'$#'
)4*%%'$#'$3%'#$3%*'A)*$?G,'$%*5,8E'7+8%8'H'/%3)=%2'
+1')'-)?'$3)$')'*%),#1)/.%'A%*,#1'-#0.2'
/%.+%=%2'3%')4*%%2'$#'/0?'1%-'#)$,9'
Fitness&First&(Australia)&v&Chong'(2008)'
• I3#14',+41%2')1')AA.+<)$+#1'$#';#+1')'4?5'#1')'
JKL5#1$3'5%5/%*,3+A'-+$3#0$'*%)2+14'$3%'6#*5'
• I3#14'-),'01)-)*%'$3)$'+$',$+A0.)$%2',3%'-),'
.+)/.%'$#'A)?')'MKNN'6%%'+,',3%'<)1<%..%2'$3%'
5%5/%*,3+A'-+$3+1'$3%'6+*,$'K'5#1$3,'
Ø Tribunal'Findings:'"#'*%B0+,+$%'<#1,%1,0,')2'
+2%5',#'<#1$*)<$'+,'+1=).+2'
Ø Approach'(Harris'J)'(Supreme'Court):'@?',+41+14'
$3%'6#*5C'I3#14'5)1+6%,$%2'3%*'),,%1$'$#'$3%'
A*+1$%2'$%*5,''
v F**%.%=)1$'$3)$'$3%*%'-),'1#'$*0%'<#1,%1,0,'
)2'+2%5'/%$-%%1'$3%'A)*$+%,''
The&Crown&v&Clarke&(1927)&HCA&
• >-#'(#.+<%5%1'50*2%*%2'
• O%-)*2'#6'PJNNN'#66%*%2'$#')1?#1%'-3#'4+=%,'
+16#*5)$+#1'$3)$'.%)2,'$#',0<<%,,60.'A*#,%<0$+#1'
• I.)*Q%'-),')**%,$%2')12'<3)*4%2'
• I.)*Q%'4)=%'+16#*5)$+#1'$3)$'.%2'$#'<#1=+<$+#1'#6'
I#0.$%*8''
• I.)*Q%'<.)+5%2'$3%'*%-)*2'/0$')25+$$%2'3%'4)=%'
$3%'+16#*5)$+#1'$#'2%6%12'3+5,%.6')12'1#$'+1'
*%,A#1,%'$#'$3%'*%-)*28'
Ø Approach'(Isaacs'CJ)'(High'Court):'(%*,#1'
)<<%A$+14'50,$')<$'#1'$3%'#66%*'
Ø Approach'(Higgins'J)'(High'Court):'I.)*Q%'2+2'1#$'
)<$'#1'$3%'6)+$3'#6C'#*'+1'*%.+)1<%'#1'$3%'*%-)*2'
v R.$3#043'$3%'%S)<$'60.6+.5%1$'#6'$3%'
<#12+$+#1,',$)$%2'+1'$3%'*%-)*2'-#0.2'*)+,%')'
A*%,05A$+#1C'$3)$'I.)*Q%'-),')<$+14'#1'$3%'
6)+$3'#6C'#*'+1'*%.+)1<%'0A#1C'$3%'*%-)*2C'$3%'
A*%,05A$+#1'-),'*%/0$$%2'/?'3+,'#-1'
%SA*%,,')25+,,+#18'
Ø Approach'(Starke'J):':*2+1)*+.?'#/;%<$+=%'
)AA*#)<3'+1'2%$%*5+1+14'-3%$3%*'$3%*%'-),')1'
)4*%%5%1$'+,')AA.+%2'
v (#,+$+#1'+,'2+66%*%1$'+1')'01+.)$%*).'<#1$*)<$'
-3%*%'<#5501+<)$+#1'#6')<<%A$)1<%'+,'
2+,A%1,%2'-+$3'7+8%8'%=+2%1<%'#6',0/;%<$+=%'
+1$%1$+#1'<)1'/%'$)Q%1'+1$#')<<#01$9'
v R<<%A$)1<%'50,$'/%'+1'*%,A#1,%'$#')1'#66%*'
7+8%8'#1%'<)11#$')<<%A$'+1'+41#*)1<%'#6'#66%*'
#*'/?')<<+2%1$'#*'+12+*%<$.?9'
!"#$%&'@?'A%*6#*5+14'$3%')<$'#6')<<%A$)1<%C')'
A*%,05A$+#1'+,'4%1%*)..?'*)+,%2'$3)$'+$'+,'2#1%'+1'
*%,A#1,%'$#'$3%'#66%*C'/0$'I.)*Q%D,'#-1')25+,,+#1'
*%/0$$%2'$3)$'A*%,05A$+#18'
'
LAW2101'CONTRACT'A'-'CASE'SUMMARIES'AND'KEY'POINTS'
!
'
'
COMMUNICATION'OF'ACCEPTANCE'
Acceptance'must'be'brought'to'the'attention'of'the'offeror'and'communication'is'effective'when'and'
where'it'reaches'the'offeror'
Case'
Findings'
Latec&Finance&v&Knight&(1969)&
• T1+43$',+41%2'3+*%'A0*<3),%')4*%%5%1$'6#*'>U'
,%$'
• V#*5',A%<+6+%2'$3)$'+$'-),')1'W#66%*X'6*#5'
<0,$#5%*'7T1+43$9')12'1#$'/+12+14'01$+.',+41%2'
/?'YV'7+8%8'1#$')66%<$%2'/?')1?'A*%LA)?5%1$'#*'
2%.+=%*?9'
• YV'A*#<%,,%2')12')<<%A$%2'$3%'#66%*'/0$'2+2'1#$'
<#5501+<)$%'+$'$#'T1+43$'
• T1+43$'*%$0*1%2'$3%'>U'/%<)0,%'+$'-),'
01,)$+,6)<$#*?'7+8%8'A0*A#*$%2'$#'*%=#Q%'$3%'
#66%*9'
• YV',0%2'6#*'/*%)<3'#6'<#1$*)<$')12',#043$'
A)?5%1$'#6'+1,$)..5%1$,'''
'
Ø Approach'(Jacobs'JA)'(Court'of'Appeal):':66%*'+,'
1#$')<<%A$%2'01$+.')<<%A$)1<%'3),'/%%1'
<#5501+<)$%2')12')<$0)..?'*%<%+=%2'/?'$3%'
#66%*#*'Z'[SA*%,,.?'#*'+5A.+%2.?''
J8 \3%*%')1')<$'+,'2%%5%2'%66%<$+=%'
)<<%A$)1<%'7%848'01+.)$%*).'<#1$*)<$9'
K8 \3%*%')<<%A$)1<%'+,'2%%5%2'%66%<$+=%'/?'
2%,A)$<3'#6'<#5501+<)$+#1'+1')'A)*$+<0.)*'
-)?'*%4)*2.%,,'#6'-3%$3%*')<$0)..?'*%<%+=%2''
7%848'A#,$).')<<%A$)1<%'<),%,9'
v YV')*40%2'$3)$'5%*%',+41+14'#6'6#*5'-),'
)<<%A$)1<%'7+8%8'6+*,$'<)$%4#*?')/#=%9'7I#0*$'
2+,)4*%%29&'I.%)*'.)140)4%'-#0.2'/%'
*%B0+*%2'$#'2+,A%1,%'-+$3'*%B0+*%5%1$'$#'
<#5501+<)$%')<<%A$)1<%C'#$3%*-+,%'YV'
<#0.2'*%$)+1'6#*5'-+$3#0$',+41+14')12'
<3##,%'+6')12'-3%1'$#'/%'/#012''
'
Postal'Acceptance'Rule'
Acceptance'occurs'the'moment'the'letter'is'posted'
!"#$%&'(#,$'50,$'/%'-+$3+1'<#1$%5A.)$+#1'#6'A)*$+%,'6#*'0,%'#6'A#,$'$#'<#1,$+$0$%')<<%A$)1<%C'),'#66%*%%'
<)11#$'*%$*+%=%'.%$$%*'#1<%'A#,$%2'
Case'
Findings'
Brinkibon&Ltd&v&Stahag&Stahl'(1983)'
• (',%1$'$%.%S'7.+Q%'6)S9'6*#5'Y#12#1'$#'R0,$*+)'
)<<%A$+14'R0,$*+)1'#66%*'6#*'4##2,'
• ('<.)+5%2'$3%'<#1$*)<$'-),'6#*5%2'+1'[14.)12'
7+8%8'$3%'A.)<%9'-3%*%'7)12'$+5%9'-3%1'$3%'$%.%S'
-),',%1$'
• (')*40%2'$3)$'$3%'A#,$).')<<%A$)1<%'*0.%',3#0.2'
)AA.?'
Ø House'of'Lords'Findings:'I#1$*)<$'-),'5)2%'+1'
U+%11)'-3%*%')<<%A$)1<%'-),'<#5501+<)$%2'
Ø 'Approach'(Wilberforce'LJ)'(House'of'Lords):'
WRAA%)*,'.#4+<).X'$3)$')'<#1$*)<$',3#0.2'/%'
6#*5%2'-3%*%')<<%A$)1<%'+,'<#5501+<)$%2'$#'
#66%*#*''
v \3%*%'A#,$).')<<%A$)1<%'*0.%')AA.+%,&''
R<<%A$)1<%'+,'%66%<$+=%'-3%1')12'-3%*%'+$'+,'
A.)<%2'+1'$3%'3)12,'#6'$3%'A#,$'#66+<%'
v \3%*%'+,'+$'+,'+1,$)1$)1%#0,'<#5501+<)$+#1'
7%848'$%.%S9&']%1%*).'*0.%',3#0.2')AA.?'
v \3%1'5%,,)4%'+,',%1$'$3*#043')'^*2'A)*$?'
-3%*%'+$'+,',%1$'#0$,+2%'#6'#66+<%'3#0*,_1#$'
+1$%12%2'$#'/%'*%)2'+55%2+)$%.?&'W"#'
01+=%*,).'*0.%'<)1'<#=%*')..',0<3'<),%,`'$3%?'
50,$'/%'*%,#.=%2'/?'*%6%*%1<%'$#'$3%'
+1$%1$+#1,'#6'$3%'A)*$+%,C'/?',#012'/0,+1%,,'
A*)<$+<%')12'+1',#5%'<),%,'/?';0245%1$'
-3%*%'$3%'*+,Q,',3#0.2'.+%X'7+8%8'*%.+%,'#1'
+1$%1$+#1'#6'#66%*#*9'
Ø Approach'(Fraser'LJ)'(House'of'Lords):'R.$3#043'
>%.%S'50,$'A),,'$3*#043')'.)*4%'6+*5C'+$'+,'
Document Summary
Manifestation of willingness to be bound by the terms of an offer made in a manner invited or required by. Objective aproach v subjective approach: relationship between the offer and acceptance. *note: parties will be bound although there was not meeting of minds (i. e. there was no consencus ad idem) as long as there is an outward manifestation) (objective theory) Tribunal findings: no requisite consensus ad: chong signed an application to join a gym on a idem so contract is invalid. Approach (isaacs cj) (high court): person: two policemen murdered, reward of 1000 offered to anyone who gives information that leads to successful prosecution, clarke was arrested and charged, clarke gave information that led to conviction of. Coulter: clarke claimed the reward but admitted he gave the information to defend himself and not in response to the reward. accepting must act on the offer.
