Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
Postal rule case study
Acceptance in postal rule
Postal rule case study
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Recommended: Postal rule case study
The legal issue to identify in the case of homer and the two fumigation services, is to confirm legal binding contracts between the parties. In order for a legal binding contract to take place, there must be an offer in place. Furthermore, the offer must be communicated to the offeree and consideration must be taken place before the acceptance. The contract is then bound legally between the two parties, making it a legal binding contract once the offeree accepts the offer from the offeror. A contract is a written or spoken agreement established by three key elements; offer, acceptance & condition. The person making an offer is called the offeror, and the person to whom the offer is made to is called the offeree . An offer is an expression …show more content…
Therefore, the acceptance occurs when the offeree agrees to be mutually bound to the terms of the contract by giving consideration, or some type of value such as money, to close the deal. The decision to accept or decline an offer can only be made by the offeree. Furthermore, an offer is accepted once it is communicated to the offeror, this form of communication can be presented in many ways, one form of communication is through the postal rule. An example of communication can be taken in the case of Brogden v Metropolitan Railway (1877) , where there was no verbal communication, however there was a contractual communication. This made it efficient enough to bind the two parties into a legally binding contract, despite there being no verbal acceptance. Under the postal rule, the acceptance of an offer is taken into effect once the letter is posted, rather than communicated . …show more content…
On October 4th, 2016 Homer calls a company known as Pest Patrol and speaks with Christine, a representative, he then states his issue and gets an offer of £400 for the fumigation services, which he accepts over the phone. At this point, Homer has accepted a unilateral contract, where only one party assumes an obligation under the contract . In this case, the party assuming an obligation is Pest Patrol and their duty is to provide the fumigation services in return for money. An example of this can be seen by the Great Northern Railway Co v Witham case, where it was held the claim is allowed because there was no obligation for the claimants to order materials, however the defendant was obliged to deliver as per his tender. On October 5th, 2016, Homer receives contracts from Pest Patrol stating the agreement of £400 pounds for the fumigation service as the conditions of the offer. After signing and sending the contracts to Pest Patrol on October 5th, 2016, Homer doesn 't hear back from the company for numerous days. On October 11th, 2016, Homer attempts to revoke his offer with Pest Patrol by sending a letter, criticising their speed and informing the company to rescind his acceptance. However, Homer had already accepted the offer through the postal rule which states, the acceptance takes effect once the mail has been
The Mailbox Rule is an area of Utah state law that declares the contract to be effective once the person accepting terms of said contract delivers it to a mailbox. The buyers stated in Addendum No. 2 that if they had not heard back from the seller by 12 a.m. that day, they would consider their counteroffer accepted. The seller was aware of the Mailbox Rule and delivered the accepted contract to a mailbox at 10:15 p.m.. The seller then experienced a phenomenon known as seller’s remorse, and left a voice message for Jon and Marsha at 12:30 a.m., thirty minutes past the proposed
Belanger v. Swift Transportation, Inc. is a case concerned with the qualified privilege of employers. In this case Belanger, a former employee of Swift Transportation, sued the company for libel in regard to posting the reason for his termination on a government data website accessible to other potential employers. Swift has a policy of automatic termination if a driver is in an accident, unless it can be proved that it was unpreventable. When Belanger rear ended another vehicle while driving for Swift the company determined the accident was preventable, while Belanger maintained it was not. Upon his termination Swift posted on a database website for promoting highway safety that he was fired because he “did not meet the company’s safety standards,”
The firework manufacturer has encountered large retail businesses that have requested to do business with them. The owner of the firework company has convinced the other company that the workload could be achieved and performed. The price per show has been discussed by the owner and the other company. A contract is a legal enforceable agreement. The contract is
In addition to, the advert requires people walking from Manchester to Birmingham thus a performance. As a result, this is a unilateral contract, which according to Jill pool contract textbook is ‘a contract where one party binds himself to perform a stated promise upon performance of a stated act by the promise’ . This highlights that anyone who performs the act will be rewarded by the yummy chocolate (defendant) thus a binding contract, Bowerman v Association of British Travel Agents Ltd (1996) . Carlill v Carbolic Smoke Ball Co (1893) is the most famous example of a unilateral contract. It was established that by Bowen LJ that ‘an offer can be made to the whole world’ and there is no requirement that the offeree communicated an intention to accept, since acceptance is through full performance . Therefore, it was the claimant’s choice to walk from Manchester to Birmingham, and once he sta...
1) An offer allows the person or business to whom the offer is made to reasonably expect that the offering party is willing to be bound by the offer on the terms proposed. The terms of an offer must be definite and certain . Based on the facts presented in this case, Mr. Pending offered Mr. Thompson a 50 percent raise and a five-year contract. 2) Acceptance is a clear expression of the accepting party’s agreement to the terms of the offer . In applying the case facts, Mr. Thompson accepted Mr. Pending’s offer when he turned down the offer from Ms. Eugest to stay with White Arch Casino (WAC). 3) Consideration is a legal term given to the bargained-for exchange between the parties to the contract – something of value passing from one party to the other. Each party contract will gain some benefit from the agreement and incur some obligation in exchange for that benefit. Finally, Mr. Pending’s bargain-for exchange was if Mr. Thompson stayed with WAC he would receive his offer next
2014). Moreover, binding contract is made at the time and place when the letter of acceptance is posted. In the case of Adams v Lindsell (1818) 106 ER where Lindsell wrote to Adam offering him some wool and asked him to reply by post too. However, Lindsell’s letter was delayed in the post. The day Adam received the letter, he immediately replied with an acceptance letter but before it could reach Lindsell, she had sold the wool to other party. This leads Adam to sue Lindsell for breaching of contract. The court is on Adam’s side as there was an agreement made the moment he posted the acceptance letter to Lindsell (the postal acceptance rule). Moreover, Lindsell cannot argue the mode of acceptance used by Adam as she was the one asking him to do
Negotiation process can lead to a speedy and informal resolution of disputes. It also helps protect the confidentiality and avoid publicity of the parties involved. Parties may improve communication between them that will enhance or preserve relationship between parties and hence leads to a speedy resolution of disputes. Parties have high degree control of the negotiation process. If an agreement is reached, parties can craft out their own agreements. Resolutions can be tailored to the needs and underlying concerns of the parties and can address legal and non-legal issues as well as providing for remedies unavailable through adjudicative processes. Legal or other just methods can be used in crafting agreements.
This case demonstrates how fresh consideration can be given in a contract by one party even when they are performing a previous duty. In this case, Williams underestimated how much the job would cost to complete, much like Ben has done, and could not complete it. However, Roffey Bros LTD would have had to pay a large penalty if the job wasn’t completed, leading them to offer Williams more money to complete the original duty. The judge ruled that Williams had helped them avoid the penalty which was beneficial and provided fresh consideration thus forming a contract and therefore Williams was owed the money.
Contracts and agreements have many key differences. A contract is an agreement between two parties that is legally binding. In order for a contract to be valid and have legal standing, it must have four requirements; consideration, contractual capacity, and legality. Without all four of these requirements it is not considered a contract and has no legal standing. An agreement is an understanding or some type of arrangement between two or more parties and does not need to have the four requirements that a contract must have. Most of the time, agreements are informal and not enforceable by law.
The offeror is bound to fulfil the terms of his offer once it is accepted. The offer may be made in writing, by words or by conduct. Unilateral – some offers are purely one sided, made without the offeror’s having any idea whether they will ever be taken up and accepted, and thereby transformed into a contract. For example, when an advertisement where a person is rewarding another one if he finds his pet (which was lost). In this case, the person who is making such an offer is not sure whether this offer will ever be accepted.
Since Carlill V Carbolic, acceptance has developed and can be achieved in various ways: in writing, oral or it may be inferred by conduct (lisa sturgreon). This requirement of complete performance was emphasised in Daulia V Four Millbank Nominees Ltd [1978] where Goff LJ stated: ‘I think the true view of a unilateral contract must in general be that the offeror is entitled to require full performance of the condition he has imposed and short of that he is not bound’ (see more Paul Richards). Furthermore, there is no need to give advance notice of such acceptance to the
...lete when Andy make it and comes to the knowledge of Joanne. Based on Section 5 of Contracts Act 1950 and the case Byrne v Tienhoven, Andy cannot revoke his proposal to Joanne because Joanne already phoned him and accept his proposal before his revocation. Hence, Andy must sell the car to Joanne. However, when regarding to the postal rule, acceptance only can be made with the same forms of communication. Andy use letter to propose to Joanne, but Joanne telephoned Andy to accept. In the case Entores Ltd v Miles Far East Corporation, it is held that postal rule does not apply to instantaneous way of communication. Hence, the acceptance by Joanne cannot be a binding contract between Andy and her. Andy can revoke his proposal at any time.
This judgment given set criterion which is still been used in the modern court system and due to this case it was developed that an offer of contract can be unilateral and doesn’t have to be made to a specific party only. Also it was developed to that the acceptance of an offer does not require a notification and that once the concerned party purchases the product the contract is active then and there itself. And it was also established that purchase of an item is a fine example of consideration and therefore makes it a valid contract. (Smith, 2000).
A contract is an agreement between two parties in which one party agrees to perform some actions in return of some consideration. These promises are legally binding. The contract can be for exchange of goods, services, property and so on. A contract can be oral as well as written and also it can be part oral and part written but it is useful to have written contract otherwise issues can be created in future. But both the written as well as oral contract is legally enforceable. Also if there is a breach of contract, there are certain remedies for that which are discussed later in the assignment. There are certain elements which need to be present in a contract. These elements are discussed in the detail in the assignment. (Clarke,
A contract is generally considered to be an exchange of promises or an agreement between parties which in due course legally binds the parties; this can be enforced by the English Law. A contract is always, referred to the basic foundations of Contract Law, which refers to promises being kept amongst two parties. It is clear that all people make contracts nowadays and do not even consider for a moment that they are forming contracts; these can be formal or informal, oral or written.