10.

Instantaneous methods of communication:

Clearly as time has progressed, postage being used as a method of

communicating acceptance has become less frequent.  Various
other instantaneous methods of communication (e.g. emailing) have
instead replaced this older method of communication.

 The rules surrounding instantaneous methods of communication

focus on the receipt of the acceptance i.e. the moment it arrives at
the offerors’ end of the relevant communicative technology.

When does acceptance occur?

Tenax Steamship Co v Owners of the Motor Vessel Brimnes [1974]

EWCA Civ 15, also highlights that similarly to the postal rule, the
actual acceptance itself does not need to be acknowledged by the
offeror for effective communication to be established. It merely
needs to be received.

What happens if the acceptance is sent but it is not received?

Entores v Miles Far East Corp [1955] 2 QB 327 informs us that in

situations where the offeror is at fault for the lack of receipt then
the acceptance is still deemed to be effectively communicated.  If
however there is no fault by either party for the lack of receipt,
then the acceptance is not considered effectively communicated.

Remember:

 The postal rule does not apply to methods of instantaneous

methods of communication.
 Acceptance only occurs on receipt.  If there is no receipt,
then there is no effective communication, unless;
  The lack of receipt is the fault of the offeror.
 Always review the specific facts of the case!  If contractual
offers between parties have always been accepted by email
and the offeree sends a fax instead, is the method of
communication considered prescribed

11. Silence:

Silence alone is not considered communication.

Remember: 

 Silence does not equal acceptance.  There must be

communication, unless;
 The conduct of the parties indicates otherwise and
acceptance can therefore be implied.
 Always pay attention the particular facts of a scenario,
situations of implied acceptance are often difficult to notice .

TERMINATION OF AN OFFER
1. An offer is terminated in the following circumstances:

Revocation

Rejection

Death

Lapse of time
 Non fullfillment of conditions

CONSIDERATION

1. What is consideration?

“A valuable consideration, in the sense of the law, may consist

either in some right, interest, profit, or benefit accruing to the one
party, or some forbearance, detriment, loss, or responsibility, given,
suffered, or undertaken by the other.”

Consideration was defined aptly in the case of Currie v Misa

2. Types of consideration :

1. Executory consideration:  This type of consideration is

formed when there has been an exchange of promises
between parties otherwise known as a bilateral contract.

2.Executed consideration: This type of consideration is found in

unilateral contract where one party makes a promise in exchange
for an act or conduct to be performed by another party.  When this
performance occurs the consideration is considered executed.

The requirements of consideration :

1. Consideration does not need to be adequate.

2. Consideration must have economic value
Limits of consideration:

Performance of an existing duty

Performance of legal obligation which are independent of any

contract

Performance of a duty already promised in a different contract.

Performance of a duty owed to a third party

Past consideration:

Past consideration is insufficient to form a legally binding

agreement.  Only consideration which is given at the time or after
the promise for which it is given will be enforceable.  Promises
given after the consideration has been completed are
unenforceable.

Exception - The case of Pao On v Lau Yiu Long [1980] AC 614

affirmed the judgement in Lampleigh v Braithwaite (1615) Hob 105
that stated if certain criteria met the requested performance of
the parties may be sufficient to amount to consideration .

 The consideration which is ‘past’ would have operated as

valid consideration if the act was done at the promisor’s
request.
 There was an understanding there would be the conferment
of some kind of reward, payment or benefit for the act.
  The consideration would have been valid had it been
promised in advance of the act.

Part payment of a Debt:

Foakes v Beer  – Part-Payment of a debt (alone) is never valid

consideration.  This is due to the ability of a party to exploit
another party in a difficult financial position.

Pinnel’s Case

 Part-payment of a debt will constitute valid consideration if it

is accompanied by another form of consideration such as
goods.