Prescribed mode and form of acceptance

Front

What if an offer, requires a certain method of acceptance?

Back

If the offer requires a certain method of acceptance, then the offeree has to accept in that way, in order for the contract to be effective.

Front

What if an offer, doesn't require a certain method of acceptance?

Back

If the offer merley indicates a mode of, then the offeree can accept in any way that is not worse than the mode indicated.

Front

How has the above mentioned point, been further accentuated?

Back

In the case of Albrite, the court held that the method of acceptance, prescribed in this case, was a mere indication, and so a contract had been formed, despite the fact that the acceptance had not been communicated, as was originally contemplated by the offer!

Front

Define the priciple of 'prescribed form of acceptance'.

Back

A 'prescribed form of acceptance', is the only way that you can accept an offer. In other words, if the offer expressly states that "This offer can only be accepted, upon the excecution/signing of the agreement/document, then that is a prescribed form of acceptance!

Front

Why is this?

Back

In the case of Corrick, the court held that the email, by which the offeree purported to accept the offer, was not the prescribed form of acceptance that was envisaged by the offer, which was that the offer could only be accepted by signing the written agreement.

Front

What is the distinction between prescribed mode and prescribed form of acceptance? Why?

Back

A prescribed form of acceptance is the only way, that you can accept the offer, because the agreement uses words of prescription like 'must' (e.g. "You must sign this document in order to accept), as was held in the case of Corrick. A prescribed mode of acceptance (e.g. by fax or email) may be accepted in a different way that is not less advantageous to the offeror, as was held in the case of Albrite.

Front

What is designation?

Back

Designation is about the method of communication, that is designated by the offeror. In other words designation means that the offeror has chosen/ elected a method of communication (e.g. by email).

Front

What has been the traditional approach to designation?

Back

Traditionally, there was quite a high threshold for designation, and you could designate more than one form of communication.

Front

How has this traditional approach been counteracted?

Back

In the case of Petterson v Gothard, Heath J suggested a much lower standard for designation than is conventional.

Front

What does paragraph one, of the Contract and Commercial Law Act 2017, section 214, state?

Back

According to the Contract and Commercial Law Act 2017 (paragraph 1, section 214), If the offeror has designated a method of acceptance, then acceptance via electronic forms of communication occurs when the acceptance email reaches the offerors information system.