Contract Law - Acceptance PDF

Preview

Summary

Use to take notes, avoid copying!...

Description

Acceptance - Cases offer + acceptance = agreement CASE Day Morris Associates v Voyce and another [2003] EWCA Civ 189 

The claimant estate agents appealed dismissal of their claim for commission. The owners were splitting up, and there was to begin with no clear instruction to market the property. Later the property was sold privately, but to a buyer introduced by the claimant to Mrs Voyce. The agent asked the court to go beyond its normal appellate function to remedy a defect in the trial in that the judge had relied upon a point unargued by the parties, as to whether Mrs Voyce had accepted the offer to act.

Held The parties are given some latitude in the scope of their arguments. The judge had not clearly identified the contractual history. A contractual acceptance has to be a final and unqualified expression of assent to the terms of the offer. Here Mrs Voyce’s behaviour had been enough to constitute such acceptance. Appeal allowed. CASE Smith v Hughes [1871] LR 6 QB 597, 607    

Smith agreed to purchase some oats from Hughes to feed his racehorse Hughes delivered green oats (also known as new oats) to Smith Racehorses cannot be fed on green oats, they must be fed on much more expensive ‘old oats’ which Smith believed he was going to get Could the contract be avoided as Hughes had delivered the wrong type of oats?

Held No avoidance, contract remained in place. CASE Day Morris Associates v Voyce and another [2003] EWCA Civ 189 

The claimant estate agents appealed dismissal of their claim for commission. The owners were splitting up, and there was to begin with no clear instruction to market the property. Later the property was sold privately, but to a buyer introduced by the claimant to Mrs Voyce. The agent asked the court to go beyond its normal appellate function to remedy a defect in the trial in that the judge had relied upon a point unargued by the parties, as to whether Mrs Voyce had accepted the offer to act.

Held The parties are given some latitude in the scope of their arguments. The judge had not clearly identified the contractual history. A contractual acceptance has to be a final and unqualified expression of assent to the terms of the offer. Here Mrs Voyce’s behaviour had been enough to constitute such acceptance. Appeal allowed. CASE Brogden v Metropolitan Railway Co [1877] 2 App. Cas. 680 

The claimants were the suppliers of coal to the defendant railway company. They had been dealing for some years on an informal basis with no written contract. The parties agreed that it would be wise to have a formal contract written. The defendant drew up a draft contract and sent it to the claimant. The claimant made some minor amendments and filled in some blanks and sent it back to the defendant. The defendant then simply filed the document and never communicated their acceptance to the contract. Throughout this period the claimants

continued to supply the coal. Subsequently a dispute arose and it was questioned whether in fact the written agreement was valid. Held The written contract was valid despite no communication of the acceptance. The acceptance took place by performing the contract without any objection as to the terms. CASE Carlill v Carbolic Smoke Ball Co [1893] 1 QB 256 

  

The Carbolic Smoke Ball company displayed an advertisement saying that £100 would be paid to anyone who could, inter alia, use their smoke ball product for 2 weeks and then contract influenza. The offer stated that £1000 had been deposited in a bank, and the address of that bank was given. Mrs Carlill followed the instructions exactly, then contracted influenza. The Carbolic Smoke Ball company refused to pay Mrs Carlill. Could the smoke ball company be bound in contract law by its advertisement?

Yes, a contract has been made. The £1000 deposit showed that the advert was more than a mere puff. An offer can be made to the world at large, but a contract would only be made with those who performed the conditions of the offer. The Carbolic Smoke Ball Co could not expect to be notified of acceptance of the offer; the performance of the conditions constituted acceptance. Consideration was provided by the sale of the smoke ball, even if not directly from the defendant company....