3presentationEmpirnall v Machon presen1

1、CLAW 5001,Empirnall Holdings Pty Ltd v Machon Paull Partners Pty Ltd 1988,Fangying Zhao 430067804,Ying Wu 430396461,Facts,1. In April 1983, Empirnall, a property developer, had purchased a building with the intention of redeveloping it. In May, Empirnall invited Machon Paull to undertake this rebuil

2、ding project as contract work. Machon Paull had accepted this work. 2. During October 1983 to February 1984, Machon Paull had been conducting the building work and once sent a printed contract to Empirnall in October 1983, asking for an acceptance. However, Empirnall had not signed the contract but

3、duly paid the progress payment in the terms of the contract submitted by Machon Paull. 3. In March 1984, Empirnall were bankruptcy and defaulted in the payment of the proceeding work. Since the work were still unpaid, in April 1984, Machon Paul stopped the work and commence the legal proceeding. 4.

4、Judge held that Empirnall and Machon Paul are under an oral contract. Empirnall appealed the judgment. Machon Paul filed a cross-appeal to state that Empirnall had accepted the printed contract.,2,2,Legal Issue and Principle,Legal Issue: Whether Empirnall had accepted the printed contract submitted

5、by Machon Paull. Legal Principle: Under the common law theory of contract, the silent acceptance of an offer is generally insufficient to create any contract: Brogden v MetropolitanRailway Co (1877) 2 App Cas 666 at 692 and Robophone Facilities Ltd v Blank 1966 1 WLR 1428 at 14321966 3 All ER 128 at

6、 131-132. Nevertheless, the silence of an offeree in conjunction with the other circumstances of the case may indicate that he has accepted the offer: Rust v Abbey Life Assurance Co Ltd 1979 2 Lloyds Rep 334 at 340. Speaking for the Court of Appeals for Maryland, Judge Levine said (at 329): “ Where

7、the offeree with reasonable opportunity to reject offered services takes the benefit of them under circumstances which would indicate to a reasonable person that they were offered with the expectation of compensation, he assents to the terms proposed and thus accepts the offer.”,3,3,Apply the Law to

8、 Facts,Empirnall argued that they have never sign the printed contract, under the common law theory of contract the silent acceptance of an offer is generally insufficient to create any contract. However, the silence of an offeree in conjunction with the other circumstances of the case may indicate

9、that he has accepted the offer:1. Further communication 2. Previous dealing 3. Commercial relationship So the case is not so much one of acceptance by silence as one of taking the benefit of an offer with knowledge of its terms and knowledge of the offerors reliance on payment being made in return f

10、or his work. Moreover, the offeree have considerable time and reasonable opportunity to reject the offer ,but they did not express the objection ,a bystander can conclude that Empirnall had accepted the printed agreement tendered to it by Machon Paull.,4,4,Conclusion,Conclusion Objectively, Empirnall had accepted the printed contract by Machon Paull. Reference: Empirnall Hol