Term
| Acceptance by post is an exception to what general rule? |
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Definition
| That acceptance must come to the attention of the offeror before it becomes valid |
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Term
| Acceptance by post must have been requested by the offeror, or acceptance by post must be a normal, reasonable or anticipated means of acceptance. See: |
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Definition
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Term
| The letter of acceptance must be properly stamped and addressed. See: |
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Definition
Re London and Northern Bank, ex parte Jones
In this case a letter of acceptance was handed to a postman who was only autorised to deliver (not collect) and the letter was held to have not been posted |
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Term
| The letter of acceptance must be posted-- that is, in the control of the Post Office (or whatever the universal postal service is called from time to time). See: |
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Definition
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Term
| The postal rule must not have been expressly EXCLUDED in the offer. See: |
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Definition
Holwell Securities v Hughes
It was held that an offer which required acceptance 'by notice in writing' meant that actual communication of acceptance must reach the offeror and as such the claimants could not rely on the postal rule. |
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Term
| Use of postal rule must not create 'manifest inconvenience or absurdity' |
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Definition
| Holwell Securities v Hughes |
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Term
| Explain the facts of Household Fire and Carriage Accident Insurance Co v Grant, damn near verbatim: |
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Definition
| The D applied for shares in the plaintiff's company. The shares were allotted to him in a letter by post, but D never received the letter. The plaintiff's company then went into liquidation and the liquidator claimed the share-purchase money from the D. D disputed the fact that he was a shareholder, on the basis that he had not received a letter of acceptance to his offer to purchase the shares. The court held that the contract had been entered when the letter of acceptance had been posted, despite the fact that it had never arrived. |
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Term
| Key cases which sets out postal rule: |
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Definition
Adams v Lindsell
Dunlop v Higgins
Household Fire and Carriage Accident Insurance Co Ltd v Grant |
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Term
| An offer made by telegram was an indication that an equally expedient mode of acceptance was required, so that acceptance by post was held not be valid. See: |
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Definition
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Term
| The offeror may prevent the operation of the postal rule by expressly prescribing a particular mode of communication. See: |
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Definition
| Manchester Diocesan Council for Education v Commercial and General Investments Ltd. |
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Term
| Lord Cottenham's Postal rule definition in Dunlop v Higgins: |
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Definition
| As a rule, a contract formed by correspondence through the post is complete as soon as the letter accepting an offer is put into the post. |
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Term
| Principle rule of Household Fire: |
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Definition
| The postal rule still applies even if the letter of acceptance is never received by the offeror. |
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Term
| Name a case that states that the Post Office is a common agent of both parties: |
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Definition
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Term
| The general rule of acceptance:"Some objective or external manifestation of acceptance must be communicated to the offeror." See: |
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Definition
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Term
| Acceptance has to be not only communicated to but also received by the offeror. See: |
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Definition
| Entores v Miles Far East Corporation |
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Term
| List reasons why you think postal rule is still effective: |
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Definition
Following Quenerduaine v Cole, if an offer is made via some more expedient source, the acceptance must follow by a source as expedient. E.g. internet or phone.
Also as in Mancester Diocesan Council for Education v Commercial and General Investments ltd, it is possible to specifically preclude the postal rule, if a company desires. |
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Term
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Definition
| An Acceptance is an unequivocal statement agreeing to and accepting an offer. |
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Term
General acceptance rules-
Acceptance must be unqualified. See: |
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Definition
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Term
General acceptance rules-
Acceptance must be communicated to the other party. See: |
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Definition
| Entores Ltd v Miles Far East Corporation |
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Term
General Acceptance Rules-
Silence cannot constitute acceptance. See: |
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Definition
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Term
Exceptions to rules on acceptance- Unilateral contracts and postal rule...
Acceptance can take place by performance. See: |
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Definition
| Carlill v Carbolic Smoke Ball |
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