Contract Law Question- Acceptance & Postal Rule Watch

Zizou10
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#1
Report Thread starter 9 years ago
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Hi

Stuck with a bit of an issue. Long story cut short, A accepts B's offer at a later date than when the offer was issued. It is done by email, however an hour earlier, the phone line/broadband connection is physically damaged outside the premises (outside of business hours). However the next day A thinks the offer isnt finanacially benefitting her, therefore she thinks of accepting X's offer.

She phones B's company and tells the secretary she wants to revoke the offer. The revocation isnt communicated to B himself, but later that day the broadband connection is restored, and within business hours B receives the email of acceptance and believes a contract exists, because the revocation isnt communicated to him by his secretary.

My thoughts are that there is no contract, because in terms of email, acceptance takes place within business hours and when it is read, and the revocation takes place before this.

What are your thoughts on this?

I appreciate your time
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The West Wing
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If A is accepting B's offer she can't revoke it.
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Zizou10
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Report Thread starter 9 years ago
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(Original post by The West Wing)
If A is accepting B's offer she can't revoke it.
Even though the idea on email communication is that acceptance takes place, once the communicated email is received during business hours. In the scenario, the guy gets the email of acceptance (as soon as his broadband is resotred) after she revokes the offer?
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Mr_Deeds
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(Original post by Zizou10)
Hi

Stuck with a bit of an issue. Long story cut short, A accepts B's offer at a later date than when the offer was issued. It is done by email, however an hour earlier, the phone line/broadband connection is physically damaged outside the premises (outside of business hours). However the next day A thinks the offer isnt finanacially benefitting her, therefore she thinks of accepting X's offer.

She phones B's company and tells the secretary she wants to revoke the offer. The revocation isnt communicated to B himself, but later that day the broadband connection is restored, and within business hours B receives the email of acceptance and believes a contract exists, because the revocation isnt communicated to him by his secretary.

My thoughts are that there is no contract, because in terms of email, acceptance takes place within business hours and when it is read, and the revocation takes place before this.

What are your thoughts on this?

I appreciate your time

What do you mean by the bit in bold? Something like, B said you have until Friday to accept this offer and A replies on Sunday?
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Mr_Deeds
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Thanks for sending me a PM of the full problem, OP, it's kind of changed the whole context of things. Firstly, you need to question whether or not Kelly's "acceptance" was actually an acceptance or a counter offer. My first argument, and probably the strongest, will be that because Kelly hasn't agreed to all the terms and conditions of the original offer and because she has herself introduced new terms to the contract, she's actually killed off Hamilton's offer and countered it with her own (Hyde v Wrench). Thus he has to accept her offer before a contract is made.

In the meantime Kelly has actually withdrawn her offer and an offer can be withdrawn by the offeror at any time before it has been accepted. That withdrawal, however, only becomes effective when the offeree (now Hamilton) receives notice of it. Hamilton's major argument will be that he wasn't aware of the withdrawal and therefore, because of the decision in Dickinson v Dodds, Kelly is still contractually bound.

Kelly will argue that, under the authority in The Brimmes, the withdrawal was valid from the time in which it reached Hamilton's business. The Court of Appeal in the Brimmes said that if a withdrawal is received by telex within business working hours, then it becomes effective regardless of whether or not the offeree has noticed it.

Kelly will not therefore be contractually bound: she has an absolute right to withdraw her offer before it is accepted (Dickinson v Dodds) and, under the authority in The Brimmes, the withdrawal was effective when the message was left and not when Hamilton received notice of it.
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Mr_Deeds
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Kelly will also benefit from the judgment in Entores v Miles Far East Corporation, OP, which basically states that the postal rules do not apply to instantaneous forms of communication.
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Walkerwilliam
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Mr. William is wrote to Bill to sell him a block of shares in Ganta ltd.In his letter which arrived on Tuesday, Mr. William asked Bill to let me know by the next saturday. on Thursday Bill posted a reply of accepting the offer. at 6pm on friday he change his mind and telephoned Mr William. Mr. William was not there but his telephoned answering machined recorded Bills message stating his willing to withdraw his acceptance. on Monday Mr. Willam opened Bills letter, which arrived that morning and then played back the message on the machine. how will you tackle this question.
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