Quiz on Acceptance in Contract Law

What is the best definition of acceptance in contract law?

• Conditional agreement to some terms

• Conditional agreement to all the terms of the offer

• Unconditional agreement to some terms

• Unconditional agreement to all the terms of the offer

Answer explanation

In contract law, acceptance is defined as an unconditional agreement to all the terms of the offer. This means the offeree agrees to the exact terms without modifications, creating a binding contract.

What happens if a term of the offer is changed on acceptance?

• This is a counter-offer that extinguishes the original offer

• The original offer remains open

• The offer is accepted

• The acceptance is valid unless the offeror rejects it

Answer explanation

Changing a term in the acceptance constitutes a counter-offer, which effectively nullifies the original offer. Therefore, the correct choice is that this is a counter-offer that extinguishes the original offer.

What must happen for acceptance to be valid?

• Acceptance must be written

• Acceptance must be in the same format as the offer

• Silence can be considered acceptance

• Acceptance must be communicated to the offeror by the offeree

Answer explanation

For acceptance to be valid, it must be communicated to the offeror by the offeree. This ensures that the offeror is aware of the acceptance, which is essential for forming a binding contract.

In Brogden v Metropolitan Railway, what action constituted acceptance?

• Paying for and accepting the coal

• Sending an email

• Signing the contract

• Sending a letter

Answer explanation

In Brogden v Metropolitan Railway, acceptance was constituted by paying for and accepting the coal, which demonstrated the parties' agreement to the terms of the contract.

Why was there no acceptance in Felthouse v Bindley?

• The offer was revoked

• The postal rule applied

• The silence was insufficient

• The offer was rejected

Answer explanation

In Felthouse v Bindley, there was no acceptance because the silence of the offeree was deemed insufficient to constitute acceptance of the offer. An acceptance must be communicated clearly, which did not occur here.

Does acceptance have to be in the same format as the offer?

• Yes, always

• Yes, if the offeror specifies it as a term of the offer

• No, if the offeree does not agree

• No, it never has to be in the same format

Answer explanation

Acceptance must match the offer's format if the offeror specifies it as a term. This ensures clarity and mutual agreement on the terms of the contract.

What does the postal rule state about acceptance?

• Acceptance is valid when the letter of acceptance is posted

• Acceptance is valid when the offeror reads the letter

• Acceptance is valid when the letter is delivered to the offeror

Answer explanation

The postal rule states that acceptance is valid when the letter of acceptance is posted, meaning the offeree's acceptance is effective as soon as it is sent, regardless of when the offeror receives it.

Which case established the postal rule?

• Felthouse v Bindley

• Carlill v Carbolic Smoke Ball Co

• Hyde v Wrench

• Adams v Lindsell

Answer explanation

The postal rule, which states that acceptance is effective when posted, was established in Adams v Lindsell. This case clarified that a contract is formed when the acceptance is dispatched, not when it is received.

How can the offeror avoid the application of the postal rule?

• By refusing to accept offers by post

• By stating as a term of the offer that acceptance is only valid upon receipt of the letter

• By revoking the offer before acceptance is posted

• By asking for an email confirmation instead

Answer explanation

The offeror can avoid the postal rule by specifying that acceptance is only valid upon receipt of the letter. This makes it clear that the acceptance must be received, not just posted.

According to Entores v Miles Far East, what must happen for electronic acceptance to be valid?

• The message must be sent during business hours

• The message must be in the same format as the offer

• The offeree must follow up with a phone call to confirm receipt

• The offeror must receive the acceptance for a contract to be formed

Answer explanation

In Entores v Miles Far East, for electronic acceptance to be valid, the offeror must receive the acceptance. This ensures that a contract is formed only when the acceptance is communicated to the offeror.