Problem areas in Offer and Acceptance Lecture objectives . Introduce the Postal Rule and consider implications for agreement · Consider how offers can be accepted differently in bilateral and unilateral contract situations . Consider how offer and acceptance may be withdrawn/retracted · (Issues relating to instantaneous communication will considered next week) The Postal Rule When is a posted acceptance effective? Adams v Lindsell (1818) - effective on posting Arguments based on business efficiency Applies even if letter never delivered - Household Fire Insurance v Grant (1879) Limitations on the Postal Rule Must be reasonable to use post - Henthorn v Fraser (1892) Lord Herschell - 'it must have been within the reasonable contemplation of the parties that, according to the ordinary usages of mankind, the post might be used as a means of communicating the acceptance of an offer' Offeror may exclude - Holwell Securities v Hughes (1974) NB rule only applies to acceptances, not any other type of communication Acceptance in Bilateral Contracts Offer can be accepted at any point until it is withdrawn Withdrawal can be: Communication - Including by 3rd party - Dickinson v Dodds A counter-offer A second offer Lapse of specified time Lapse of 'reasonable time' Acceptance in Unilateral Contracts Problem of withdrawal of offer in 'reward' contracts - Great Northern Railway Co v Witham (1873) Errington v Errington (1952) - can't withdraw once offeror knows other party has started perfomance - cf Daulia v Four Millbank Nominees (1978) What if offeror doesn't know this? Retraction of Acceptance? Common law - generally not possible But ? position in relation to postal acceptances - can they be withdrawn by speedier means? Consumer protection regulations Eg Consumer Protection (Distance Selling) Regulations 2000 - cancellation rights Next week:
Instantaneous Communication in Contracts