ACCEPTANCE ELEMENT 2

Section 2 (b) Contract Act 1950 DEFINITION Section 2 (b) Contract Act 1950 “When the person to whom the proposal is made signifies his assent threto, the proposal is said to be accepted: a proposal, when accepted, becomes a promise.”

ACCEPTANCE A offer to sell his car to B And B accept the offer ACCEPTOR/ PROMISEE/ OFFEREE

FORM OF ACCEPTANCE ACCEPTANCE VERBAL/ORAL WRITING GESTURE/ ACTION

COMMUNICATION OF ACCEPTANCE The communication of acceptance is completed when it come to the knowledge of the proposer.

ENTORES LTD v MILES FAR EAST CORP [1955] 2 QB 327 Offer was sent from London by telex. Acceptance was made by telex from Amsterdam to London. P sued D for breach of contract and start an action in London. ISSUES: 1)whether the communication of acceptance was completed? 2)Where the contract was made?

ENTORES LTD v MILES FAR EAST CORP [1955] 2 QB 327 Court decision: The communication of acceptance was completed in London when the proposer received it. The contract was made in London. INSTANTANEOUS MEANS OF COMMUNICATION 1) Telephone 2) Telex 3) Email

SECTION 7 CONTRACT ACT 1950 The acceptance must – be absolute and unqualified. (b)be express in some usual and reasonable manner unless the proposal prescribes the manner in which it is to be accepted.

(a)be ABSOLUTE and UNQUALIFIED SECTION 7 CONTRACT ACT 1950 (a)be ABSOLUTE and UNQUALIFIED The acceptor must accept the offer without any condition.

(a)be ABSOLUTE and UNQUALIFIED SECTION 7 CONTRACT ACT 1950 (a)be ABSOLUTE and UNQUALIFIED The acceptor must accept the offer without any condition. HYDE v WRENCH (1840) The D agreed to sell his estate to the P for £1000. However the P made a counter offer of £950. the D refused to sell the estate. Later on the P agreed to by the estate for £1000, but the D still refused to sell. The P sued the D for breach of contract. Court: there was no valid contract since P failed to fulfilled the D condition precedent.

SECTION 7 CONTRACT ACT 1950 (b)be express in some usual and reasonable manner unless the proposal prescribes the manner in which it is to be accepted. Where the proposal EXPRESSLY or IMPLICITLY states that it can be only accepted in certain way, the acceptor is bound to accept it in the prescribed manner. Must do it within reasonable time.

DOES SILENCE CONSTITUTES AN ACCEPTANCE? EFFECT OF SILENCE DOES SILENCE CONSTITUTES AN ACCEPTANCE? FELTHOUSE v BINDLEY (1826) The P wrote to his nephew offering to buy the horse saying: “if I hear no more about him, I consider the horse is mine at £30 15s”. The nephew did not reply. Later on the horse was sold in auction by mistake and the P sued the auctioneer for breach of contract. Court: there was no contract since the was no acceptance from the nephew.