• Home
• Order now
• Prices
• How we help
• Press
• Law marking
• Contact us
• Resources
• Log in

"That's one Contract Law exam question nailed..."

Pretty much all contract law exam papers are going to have a question on offer and acceptance.  So read up well on this one - it's your chance to earn a lot of marks.  This article gives you a step by step walk through of offer and acceptance questions for you to revise.

You approach offer and acceptance questions in five steps.  Remember that the person making the offer is called the Offeror and the person accepting is called the Offeree.

STEP 1 - has an offer been made?

The usual distinction here is between an offer and an invitation to treat.  An offer is a specific and definite proposition showing the offeror's clear intention to be bound. An invitation to treat is an invitation to enter into further negotiations.

Popular cases to revise:

• Carlill v Carbolic Smoke Ball Co [1893] 1 QB 256, CA
• Harvey v Facey [1893] AC 552

STEP 2 - if an offer has been made, has the offeree unequivocally accepted the offer?

If the ‘acceptance' contains new terms, then it is not an acceptance at all, but instead may be a counter offer which the original offeror must then choose whether to accept (Hyde v Wrench).

You also need to check at this stage that the form of acceptance shows the intention to be bound. So in land law, accepting 'subject to contract' does not usually result in contractual liability (although revise Alpenstow Ltd v Regalian Properties on this point).

Another important point is the mode of acceptance - silence rarely constitutes acceptance unless the offeree has agreed as much (Re Selectmove Ltd), but actions can constitute acceptance (Brogden v Metropolitan Ry Co). Have a look at J Pereira Fernandes SA v Mehta to make sure you're clear on the rules regarding the use of emails and signatures.

Popular cases to revise:

• Hyde v Wrench (1840) 3 Beav 334
• J Pereira Fernandes SA v Mehta [2006] EWHC 813 (Ch), [2006] 2 All ER 891, [2006] 1 All ER (Comm) 885
• Re Selectmove Ltd [1995] 1 WLR 474
• Brodgen v Metropolitan Ry Co (1877) 2 App Cas 666
• Powell v Lee (1908) 99 LT 284

 

STEP 3 - has the acceptance been communicated?

This is a favourite for exam questions.  The old favourites were answering machine messages and fax machines but nowadays you'll likely have to consider more modern forms of communication, like email and contact forms on websites.  You'll need to know the rules as to whether the acceptance will be effective when it is received, or whether it needs to be read and understood by the Offeror (Entores Ltd v Miles Far East Corp).  The way the offer was made may give you clues (it may even specify how the Offeree should contact the Offeror to accept the offer).

Popular cases to revise:

• Entores Ltd v Miles Far East Corp [1955] 2 QB 327
• Mondial Shipping & Chartering BV v Astarte Shipping Ltd [1995] CLC 1011
• Holwell Securities Ltd v Hufhes [1974] 1 WLR 155

 

STEP 4 - at the time the acceptance is effective (whether on receipt, or when read/understood), is the offer still open?

You'll need to know the rules on how an offeror can revoke his offer.  Of course, any time limit in the offer may mean it has lapsed.

Popular cases to revise:

• Dickinson v Dodds (1876) 2 Ch D 463
• Pickfords Limited v Celestica Limited [2003] EWCA Civ 1741 unreported

 

STEP 5 - are there any other rules that mean you should depart from the usual rules of offer and acceptance?

For example, if the offer is made unilaterally, the offeror may not be able to revoke it even though the offeree has not yet accepted.

Popular cases to revise:

• Carlill v Carbolic Smoke Ball Co [1893] 1 QB 256, CA (used in step 1 above)
• Errington v Errington and Woods [1952] 1 KB 290 cf Luxor (Eastbourne) Ltd v Cooper [1941] AC 108

Remember, to get a good result, you need to consider all possibilities that the question presents, rather than just reaching a narrow conclusion. Present the arguments for and against the likely conclusion (and the alternatives, with legal authority i.e. cases to back up both arguments). Say what you think the likely result is and identify any flaws in your logic.

Don't be worried about critising the cases you're using - if for example a particular case is clearly dated and doesn't take into account modern day forms of communication, say so. This sort of critical analysis gains you the first class grade you're looking for.

The five step process is employed by Chandler and Brown in their revision book, ‘Law of Contract' (Oxford University Press) which is highly recommended.

Tweet

Do you need to translate this page?

To translate this page into another language, please select the correct language from the box below.

LOOKING FOR SPECIFIC HELP? We can help you in many law areas!

Did you know that we also provide a service that can help you in other law areas such as:

• GCSE Law Coursework
• A Level Law Coursework
• Law Essay Writing
• BVC/BPTC Writing
• LLM Writing
• LPC letter drafting
• Opinion Writing
• English Legal System
• And much more!

Want to see what our customers say about us? Click here to watch our video.

Want to become a writer for Law Teacher and earn up to £4,000 per month? Click here now!

Articles in this section

• Asbo Sentencing Guideline
• Employment Law Changes April 1st And April 6th 2009
• Google Should There Be Laws To Manage Such Power
• Human Rights Watch Control Orders In The House Of Lords
• Researching And Writing A Good Law Essay
• Thats One Contract Law Exam Question Nailed
• Thinking Of Becoming A Lawyer
• Universities And Colleges In The United Kingdom
• Welfare Reform Bill Change On The Cards
• Work Experience Vacation Schemes And Mini Pupillages

Copyright © 2012 All Answers Ltd. All Answers Ltd is a company registered in England and Wales with Company Registration No: 4964706 VAT Registration No: 842417633 - Law Teacher - The law essay professionals