Case Laws on Acceptance
Business Law Tuition on Case Summary
| Concept | Case | Facts |
| Silence does not amount to acceptance | Felthouse v Bindley [1862] 142 ER 1037 | An uncle who wanted to buy a horse from his nephew wrote “If I hear no more about him, I will consider the horse mine”. The horse was accidentally sold away to another person. The court held that since there was no communication, the contract was not binding. |
| Acceptance can be conveyed by conduct | Brogden v. Metropolitan Railway Co [1877] 2 app Cas 666 | When Brogden returned the amended contractual document which amounted to a counter-offer, the court held that it was regarded as acceptance by conduct when Metropolitan Railway Co ordered the coal (action) |
| For instantaneous communication, contract is only effective when and where received acceptance is received. Telex messages sent outside working hours not considered instantaneous. | Brinkibon v Stahag Stahl und Stahlwarenhandels GmbH [1983] 2 AC 34 | The court held that acceptance is only effective when the office re-opened. |
| When an offer is made by telephone, a contract is formed at the time and place where the acceptance is received. Acceptance can be conveyed by conduct | Transniko Pte Ltd v Communication Technology Sdn Bhd [1996] 1 SLR 580 | The offer to purchase goods from the defendant did not state if it should be in written or oral acceptances. The plaintiffs accepted by conduct when they sent the goods to the defendants. |
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