According to the mail rule, an acceptance can then be effective only if the acceptance has been mailed. The offeror can only change or even bend the implementation of the rule when the involving individuals fail to come to the negotiation of a one to one basis. The key issue then transcends when crucial components like acceptance and also revocations do come into play. The utmost regulation underplay is that acceptance can only be efficient and effective the moment it is truly dispatched. On the other hand, the whole acceptance will then be affected the moment the offeror gets to receive them. For this reason, this moment and concept can only be codified by the rule of the mailbox. The concept is well illustrated in the case of cities service oil company v. The national Shawmut bank. For the acceptance to be valid the moment it is dispatched, then it is important to send the acceptance in a timely and in an efficient manner. The offerer’s silence is not perceived to be an acceptance. However, there are exceptions linked to the rule of silence. Silence is an acceptance in a situation where the offeree provides the offeror with a notion that the silence will be perceived as acceptance. This is well illustrated in the case of National Union Fire Insurance Company against Ehrlich. The second exception is that the silence will be taken as acceptance when the offeror has hinted to the offeree that the silence will be taken as an acceptance. This is well illustrated in the transaction of General Motors and the Limousine Service. The third exception is that silence will be considered as an acceptance in a situation where the offeree sends the offeror either an approval or an inspection as a sign of acceptance. Finally, silence is acceptance when the agreement posses the regulatory framework of a counteroffer.
Consideration needs to be a double way street for purposes of binding the relevant parties to the contract. This is because, for a notion of exchange to exist, there must be two parties in play. This links the parties to believe that consideration needs to shift from just making a promise. Therefore, for one to determine if the promise is implemented, there must be two parties involved. One of the parties needs to consider what the other party was provided and given and what he does in return. For this reason, for this claim to be realised the issue of formality and reliance is very important. The concept provides the right kind of modification under the common law where the two parties will need to be binding. There are various exceptions to the common law rule which needs a new layer of the mutual consideration for purposes of making sure that the modification is rightfully valid. In situations where the acceptance is dispatched in an untimely manner. Under these conditions, the consideration will then be considered to be ineffective. It acts as the backing of counteroffer and the offeror will then be in a position to accept and reject the offer.
A modification of an employment contract and the modification of a contract to have a house built are some of the contracts that need mutual consideration to be binding. The concept of past consideration is no consideration means that consideration can only be implemented and supplies currently or in future. However, those kinds of considerations that were done in the past are not considered to be good considerations. An example of pre-existing duty rule is that when contractors come into an agreement to construct a house for a given price but later on he or she threatens to leave the job on condition that the owner committed to pay more money, the new promise of the owner will then not be implemented as a result of the pre-existing duty rule. Under such a circumstance, there is absolutely no consideration for such a promise. An illusory promise can be defined as a promised that cannot be enforced as a result of indefiniteness where only one of the partners is bound to carry out. One example of this will be the contract between the seller and buyer which underlines that the seller agrees to sell all of its products he needs to the buyer at any given time. A liquidated debt is defined as a debt which already been settled. On the other hand, unliquidated debt is defined as a debt which has not yet been paid. The rule protecting the debtor from modifying the agreement is the commonwealth consumer protection law. The law is normally linked and relevant to the process of collecting debts. The law provides the guidance and guidelines on the dos and don ts of minimising the risk of breaching any debt related agreements.
The element of consideration and acceptance involves the evaluation and analysis of various promises. The element targets the manner in which courts of law flags out promises that need a lot of seriousness for the court to implement and enforce. The court is normally guided by promises which can be followed by sanctions the moment they fail to keep it. When the moral promise is breached, the sanction might then be disapproved. When one fails to abide by the legal promise, some of the sanctions that follow this include imprisonment, fines, and other specific performances underlying the breach. Failing to have in place consideration is one of the indicators which show that the promise is not under the mandate of a court. Therefore, the element of consideration is a strange concept before the English common law. This is different from the European Civil law systems which have proved it to implement the gratuitous promises. However, the issue of consideration is directly correlated to the causes of civil law. This is because it exposes the motive for people to contract and understand the reason as to why the arrangement needs to be enforced by the court of law. There is a misconception that consideration replaces intention which acts as a foundation of promissory liability within the civil law. Consideration needs to shift from the issue of promise. Therefore, to determine is promise can be enforced, it is important to consider what the other party is doing. The other party is defined as the other individual whom the promise was provided. Some of these elements that the other party needs to do include promising to make that payment, actual payments, and also the process of delivery the payment.