Dawson v. Helicopter Exploration Co.
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ISSUES
Was there a valid form of offer and acceptance between the two parties to form a contract?
RATIO
The contract could not be terminated without both parties discharging their complimentary actions for performance
Silence almost does not constitute an abandonment of a contract, but rather you must look at the circumstances of each case
Acceptance must be clear, but here it is not clear, it can be implied from the language and conduct of the parties.
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Felthouse v. Bindley
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ISSUES
Was there a contract between the uncle and the nephew for the sale of the horse to the uncle?
RATIO
Acceptance must be communicated.
Silence is not a mode of acceptance.
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Saint John Tug Boat Co. v. Irving Refinery Ltd.
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ISSUES
Does the defendant’s conduct constitute a continued acceptance of the offer that gave rise to a binding contract?
RATIO
Acceptance may be inferred from conduct, where the offeree knows that an act, undertaken for their benefit, is an act that a reasonable person would expect to pay for
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Eliason v. Henshaw
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ISSUES
Was there acceptance of the offer even though acceptance was communicated to a different place than was requested?
RATIO
The Offeror is the master of the offer and sets out the terms and conditions of the offer that the Offeree must accept.
Any qualification or departure from those terms means that acceptance is not valid.
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Communication of Acceptance
Mailed Acceptances
Household Fire & Carriage Accident Insurance Co. v. Grant
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ISSUES
Was there a contract despite the fact that the Defendant didn’t receive a letter of allotment?
RATIO
Postal Rule:
If the parties have contemplated the post as a medium of communication for the contract, then the contract is completed as soon as the letter accepting the offer is put in the post. This is known as the Postal Rule.
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Holwell Securities Ltd. v. Hughes
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ISSUES
Did the postal rule apply in this case?
RATIO
When a specific clause has been laid out in order to exercise the option, the postal rule cannot displace that requirement
The postal rule does not apply in situations where a notification of acceptance has been specified
The postal rule does not apply where it would produce manifest inconvenience and absurdity
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LECTURE 4
Instantaneous Methods of Communication
Brinkibon Ltd. v. Stahag Stahl Und Stahlwarehandelsgesellschaft mbH
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Issues
Is acceptance of an offer made by telex from the UK but received in Austrian a contract made in the jurisdiction of the UK?
Ratio
The general rule in cases of instantaneous communications is that the contract is complete when acceptance is received by the Offeror and in the jurisdiction where the acceptance is received by the Offeror.
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Rudder v. Microsoft Corp.
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Issues
Was the contract formed on the basis of clicking “I agree”.
And if so, do all terms in the agreement apply, even the terms that the Plaintiff did not see?
Ratio
Acceptance may be communicated by simply pressing “I agree” on a computer screen and such acceptance is held to apply to all terms set out in the agreement including those not read by the Offeree.
The normal rules of contract formation that are applicable to agreements in writing are also applicable to agreements created in electronic form.
With respect to forum selection clauses, the onus is on the party objecting to it to show there is a strong cause to override the agreement and the threshold to be surpassed is beyond the mere balance of probabilities.
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