Whenever a contract is to be formed, there are certain elements which should meet the requirement in order for it to be established. They are offer, acceptance (agreement), consideration and intention. * Definition: Agreement – Is formed when an offer is made and accepted. * Communication: Must be communicated
* Except in the case of a unilateral contract.
* Two types of Communications:
* Definition of Acceptance: “Acceptance is a final and unqualified expression of assent to the terms of an offer” [G.H. Treitel, The Law of Contract, 10th edn, p.16]. * Acceptance comes into formation when a party consents to an offer. It is mandatory that Acceptance must be communicated, unless the offer is Unilateral. * Entores-v-Miles Far East: Acceptance was sent from Holland, and received in England, so English law was imposed. Acceptance needs to be heard by the party which initially offered. * Acceptance is only required in Bi-lateral contracts.
* Carlill-v- Carbolic Smokeball: The offer was unilateral, thus no communication of acceptance was required. * Instantaneous Vs. Non-Instantaneous Communication
* Instantaneous: Phone Calls
* Non-Instantaneous: Postal Letters
* Adams-v-Lindsel: Postal Acceptance is considered communicated once the postal reply has been carried out. * There is lack of cases / results point out to modern communications, like Faxes and E-Mails. * Business Hours Rule:
* Brinkibon-v-Stahag Stahl: Telex acceptance, Business Hours Conclusion:
* Entores-v-Miles Far East remains a significant referred case in regards of communication, as it establishes that in Bi-lateral contracts, a contract only comes to existence when an acceptance has been received by the offering party. * This rule still holds good; and Entores-v-Miles case is...