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Law of Contract. Acceptance. COURSE LEARNING OUTCOME(CLO). Movie Carlill v Carbolic Smokeball. Video. Conclusion: Where a reward is offered to any person who does a certain thing, it follows that any person may accept.
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Law of Contract Acceptance
Conclusion: • Where a reward is offered to any person who does a certain thing, it follows that any person may accept. • It is clear that a party intends their words or conduct to constitute an offer • The plaintiff was entitled to the 1000p as she had accepted the offer made to the world at large.
Defination of Acceptance • S2(b) of Contracts Act laid down. “when the person to whom the proposal is made signifies his assent thereto, the proposal is to be accepted a proposal, when accepted, becomes promise”
Section 9 of the Contracts Act • There is an expressed acceptance if the acceptance of any promise is made in words • An implied acceptance if the acceptance is made other than in words.
Rules Regarding Acceptance Acceptance of an offer may be made orally Acceptance of an offer may be made writing How Made Acceptance of an offer may be made by conduct
This means that the acceptances must be absolute and must conform exactly with the terms of the offer. Thus if the offeree is required to perform an act or to pay a sum money, the act must be performed or the sum mentioned paid exactly
Neale v Merrett M offered to sell land to N for 280p. N replied purporting to accept and enclosed 80p, promising to pay the balance of 200p by monthly instalments of 50p each. Held: That N could not enforce acceptance because his acceptance was not an unqualified one.
Hyde v Wrench A purported acceptance which is qualified by the introduction of a new term may be considered by the courts as a counter-offer destroying the original offer
The proposer cannot prescribed silence as a manner of acceptance. Felthouse v Bindley
Acceptance must be made within a reasonable time Ramsgate Victoria Hotel Ltd v Montefiore M applied for shares on 8 June but he was not told until 23 Nov that his offer had been accepted and that shares had been allotted to him and the balance owing on the shares was now due. M refused to pay and the company threatened to sue alleging breach of contract. Held: The offer to purchase shares had not been accepted within a reasonable time and the offer had therefore lapse. There was no contract created
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Song: The Offers Real Video
Acceptance by Post : the communication of an acceptance is complete:
Murni wrote offering to sell her house at a price of RM150.000. As against Murni when letter of acceptance is posted by Mamat The comunication of the acceptance is complete Mamat accepts Murni’spoposal by a letter sent by post. As against Mamat when letter of acceptance is received by Murni
Adam v Lindsell On 2 Sept, A wrote offering to sell wool at a price, and requesting an answer in course of post. The letter was misdirected and reached L on 7 Sept. The reply of acceptance was send at once and reached A on 9 Sept, but the wool had been sold on 8 Sept Held: That there was agood contract between A and L because the offer was accepted at once on being received Where an offer is made and accepted by letters sent through the post, the contract is made the moment the letter accepting the offer is posted, eventhough it never reaches its destination For the above rules to apply, the letter of acceptance must be prepaid,properly addressed and properly posted. The handling of aletter to a postman is not a proper posting.
A propose, by a letter sent by post, to sell his house to B B accepts the proposal by a letter sent by post A may revoke his proposal at any time before B posts his letter of acceptance, but not afterwards B may revoke his acceptance at any time before when the letter communicating it reaches A, but not afterwards
COMMUNICATION OF A REVOCATION A revokes his proposal by telegram. The revocation is complete as against A when the telegram is despatched. It is complete as against B when B receives it.. B revokes his acceptances by telegram. B’s revocation is complete as against B when the telegram is despatches. It is complete as against A when A receives it.
Mama Miaw advertised in a newspaper, an offer of reward of RM1.000 for the return of her Persian cat. Adik was on the way to school when he found the Persian cat. He recognised the cat and returned it to Mama Miaw. Two days later, he read the newspaper and learnt about the reward advertised by Mama Miaw. He wants to claim the reward. Advise Adik.
A customer shopping at a supermarket makes a valid contract with the retailer when a) she puts the goods in the trolley. b) she gives the goods to the cashier. c) the cashier accepts payment for the goods. d) she collects the goods after paying for them. .
An offer is a) a proposal made by the offeree b) a proposal accepted by the offeror c) a proposal made by the offeror d) a proposal accepted by the promisor
On 1st February 2010, Ben wrote to Roy offering to sell his cat, Awie, at the price of RM2000. Ben gave Roy until 10th February to accept his offer. Roy received the letter on 3rd February 2010 and posted the letter accepting Ben's offer on 9th February 2010. Ben however has changed his mind in selling Awie. He posts a letter to Roy on 7th February 2010 revoking his offer. Roy received the letter of revocation on 10th February 2010 and Ben received Roy's letter of acceptance on 12th February 2010. Advise Roy on whether a contract has been constituted.
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