Acceptance of An Offer

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16 Terms

1

Acceptance

The expression of consent to the terms of an offer, which can be made orally, in writing, or by conduct.

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2

Mirror Image Rule

The principle that an acceptance must exactly match the terms of the offer to create a valid agreement.

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3

Unilateral Offer

An offer that can be accepted only by performing a specified act.

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4

Bilateral Offer

An offer that requires acceptance through a return promise or mutual agreement.

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5

Communication of acceptance

The process by which an offeree informs the offeror of their acceptance of an offer.

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6

Receipt Rule

A rule stating that acceptance is communicated only when the offeror has actually received notice of it.

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7

Postal Rule

A rule that states acceptance occurs when the letter of acceptance is posted, not when it is received.

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8

Entores Ltd v Miles Far East Corp

A case establishing that acceptance in face-to-face communication is effective only upon the offeror's actual receipt of it.

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9

Carlill v Carbolic Smoke Ball Co.

A landmark case affirming that in unilateral contracts, performance of the act is sufficient acceptance without prior communication.

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10

Powell v Lee

A case confirming that communication of acceptance is only effective if made by an authorized person.

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11

Felthouse v Bindley

A case establishing the general rule that silence cannot constitute acceptance of an offer.

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12

Manchester Diocesan Council of Education v Commercial & General Investments Ltd.

A case indicating that if a specific mode of acceptance is specified by the offeror, that method must be used.

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13

Brogden v Metropolitan Railway Co.

A case where acceptance was inferred from conduct, despite lack of explicit communication of acceptance.

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14

Henthorn v Fraser

A case indicating that the postal rule applies when it was reasonable for the offeree to use the post.

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15

Household Fire & Carriage Accident Insurance Co. Ltd. v Grant

A case affirming that acceptance occurs upon posting, even if the letter is delayed or lost.

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16

Holwell Securities Ltd v Hughes

A case interpreting that the phrase 'notice in writing' required actual receipt and excluded the postal rule.

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