LLB202 Study Guide - Final Guide: Answering Machine, Fax, Law Reports
2 ACCEPTANCE pg 58
Definition
Acceptance of an offer is the expression, by words or conduct, of assent to the terms of the
offer in the manner prescribed or indicated by the offer (Anson's Law of Contract, p 32).
Thus acceptance may be express or implied.
HBF Dalgety v Morton [1987] 1 NZLR 411
Brogden v Metropolitan Railway Company (1876–77) LR 2 App Cas 666
2.1 Requirements
A person cannot accept an offer which has not been properly communicated.
Taylor v Laird (1856) 156 ER 1203
There are two requirements for the acceptance to be valid:
(1) The offeree must intend to accept the terms of the offer.
(2) The intention to accept must be communicated to the offeror.
2.1.1 Offeree must agree to the terms of the offer
An offeree must intend to accept the offer. In addition, an acceptance must be
unqualified and must correspond to the terms of the offer.
Offeree must have knowledge of, and act in reliance on, offer p58
Consensus and idem = parties to enter into an agreement, offeror must have made the offer
and offeree must have agreed to terms of offer at the one moment in time
Offeree must have knowledge of terms of offer at time of purported acceptance
-Intention to accept
It appears that there is no contract if two offers identical in terms, cross in the
post - neither can be construed as an acceptance of the other, although there is
unanimity of mind.
Example: Anna is aware that Bernadette wants to sell her car. Anna leaves Bernadette
a note in her letterbox offering to buy the car for $3000. by coincidence, at the same
time Bernadette rings Anna and leaves message on Anna's answering machine that
she would be happy to sell her car for $3000.- not valid acceptance as there are two
offers
Tinn v Hoffman & Co (1873)) 29 LT 271
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-The acceptance must be in reliance on the offer rather than for some other
reason
The offeree must have knowledge of the offer and be acting in reliance upon that offer
R v Clarke (1927) 40 CLR 227
Issue before court:
Whether Mr Clarke could collect reward of 1000 pounds for providing information that led to
arrest and conviction of murdered police officers. Mr Clarke provided information not to
receive the reward, but to ensure he was not charged with the murders.
Decision:
High court held that Mr Clarke was unable to collect reward despite knowing of the offer
when he provided the information.
It will be a question of construction whether the offer is such that it may be
accepted only by the first person responding or by more than one person
Robinson v M’Ewan (1865) 2 WW & a’B (L) 65
In the case of an offer is capable of being accepted by more than one person,
more than one valid contract may formed.
Patterson v Dolman [1908] VLR 354
However, if the offer relates to a single item of property the offeror will only
be able to perform one of the contracts and will be obliged to breach the
others.
-Person accepting must be offeree
If offer made to by A to B then it cannot be accepted by C. Unless stated on terms of the
offer.
In an advertisement such as in Carlill more than one person can accept and multiple
contracts are formed
If it's in a reward for information case then courts interpret it as accepted by the first
person to come forward therefore only one formed contract
Offeror in contractual risk if only one contract can be formed but two or more
purported acceptances are provided
Eg: offer to sell real estate to two different people. Both accept before offer withdrawn
from the other then two valid contracts are formed and offeror liable for damages of
breach of contract
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2.1.2 Counter Offers
If the offeree tries to introduce new terms, this will constitute a counter-offer which
terminates the original offer (Hyde v Wrench). The new offer can then be accepted or rejected
by the original offeror.
Case example
Hyde v Wrench (1840) 49 ER 132
Facts:
Seller offers to sell farm for 1000 pounds. Buyer replies that he would buy for 950 pound and
seller refuses. Buyer later purported to accept seller's original offer to buy the farm for 1000
pounds.
Decision:
By making the counter offer of 950 pounds, the buyer rejected the seller's original offer.
Original offer cannot later be revived by buyer's purported acceptance. Therefore no contract
was formed.
When parties agree on main terms but others not so much this is referred to as
'battle of the terms’
Case example- battle of the terms
Butler Machine Tool Co Ltd v Ex-cell-o Corporation Ltd
Facts:
Seller of machinery quoted price on a standard form which contained clause entitling seller to
vary that price. Buyer placed order for the same machinery on its own form which contained
different standard conditions. Seller acknowledged order by returning order form (which
formed part of buyer's order form) to the buyer.
Decision:
Court of appeal held that seller was not entitled to rely on price variation clause as it did not
form part of the contract. Buyer's form constituted a counter offer which contained different
terms to original offer. That counter offer was accepted when seller returned the
acknowledgement.
Even if offeree adds additional term/s to offer then it's counter offer
Turner Kempson v Camm [1932] VLR 498
A purported acceptance that departs from the terms of the offer but only in a minor, non-
material way may be effective and not amount to a counter-offer.
Dunlop Higgins
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Document Summary
Acceptance of an offer is the expression, by words or conduct, of assent to the terms of the offer in the manner prescribed or indicated by the offer (anson"s law of contract, p 32). Hbf dalgety v morton [1987] 1 nzlr 411. Brogden v metropolitan railway company (1876 77) lr 2 app cas 666. A person cannot accept an offer which has not been properly communicated. There are two requirements for the acceptance to be valid: (1) (2) The offeree must intend to accept the terms of the offer. The intention to accept must be communicated to the offeror. 2. 1. 1 offeree must agree to the terms of the offer. An offeree must intend to accept the offer. In addition, an acceptance must be unqualified and must correspond to the terms of the offer. Offeree must have knowledge of, and act in reliance on, offer p58.
