Question 1
Scenario 1
Clyde & Rowe send an email offering to buy timber for £100,000 containing their terms and
conditions to Sadrocor Ltd. The email states that the offer is open for acceptance for 14 days,
beginning with the date of the email, 16th March
On 26th March, Sadrocor respond...
Clyde & Rowe send an email offering to buy timber for £100,000 containing their terms and
conditions to Sadrocor Ltd. The email states that the offer is open for acceptance for 14
days, beginning with the date of the email, 16th March.
On 26th March, Sadrocor respond to Clyde & Rowe’s email by posting a letter accepting all
major conditions. However, the letter from Sadrocor is lost in the post, and never arrived
Clyde & Rowe’s office. Clyde & Rowe have now purchased the timber elsewhere.
An offer is an indication by one person that he/she is prepared to contract with one or more
other party, on certain terms, which are fixed or capable of being fixed. 1 It is made with the
intention that it is to become binding as soon as it is accepted by the person to whom it was
addressed2. Clyde & Rowe (offeror) sending an email to Sadrocor indicates their willingness
to contract on particular terms, and the offer is available for a fixed period of 14 days.
There are 3 main rules relating to acceptance; it must be communicated to the offeror 3, the
terms of acceptance must exactly match the terms of the offer and the agreement must be
certain4. The receipt rule provides that acceptance and therefore a binding contract comes
into effect when acceptance is received; which means the offeror must be aware of the
same.5 However, the postal rule, laid down in Adam v Lindsell6, is an exception to this. The
court ruled that a posted acceptance is complete upon posting in the post box. In
British & American Telegraph Co Ltd v Colson7, Bramwell B argued that if the sender opted
1
Gibson v Manchester City Council [1979] 1 WLR 294
2
Harvey v Facey [1893] UKPC 1, [1893] AC 552
3
T. T Arvind, Contract Law (2nd edn, OUP 2019) p30
4
Hyde v Wrench (1840) 49 ER
5
Entores v Miles Far East Corp [1955] 2 QB 327
6
Adam v Lindsell (1818) 106 ER 250
7
British & American Telegraph Co Ltd v Colson (1871) LR 6 Exch 108
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