• In the case of Manchester Diocesan Council for Education v Commercial and General Investments Ltd 1969 3 all er 1593, it is established that where an offer states a method of acceptance and does not insist that it is binding, then acceptance by any other method that is no less advantageous is effective.

Facts of the Case

  • The claimants, Manchester Diocesan Council of Education (C), called for tenders (offers) in relation to a property, it was stated that the successful bidder would be informed of acceptance by a letter to their home address.
  • The defendants, Commercial and General Investments Ltd, submitted a bid to buy the property from the Manchester Diocesan Council of Education.
  • The claimants decided to accept the offer made by Commercial and General Investments, an acceptance notice was sent to the bidder (tender), however, they sent the documents to the defendant’s solicitor and not their home address given on the offer.
  • Later another acceptance letter was sent to the defendant’s address, as listed on the bid. Unfortunately, the defendant attempted to withdraw their offer on the same day the claimants sent out the new offer. 
  • Manchester Diocesan Council of Education sued Commercial and General Investments Ltd for breach of contract.

Issues in Manchester Diocesan Council for Education v Commercial and General Investments Ltd 1969 3 all er 1593

  • The defendants argued that its offer had lapsed.
  • The defendants additionally argued that because the letter of acceptance was sent to the wrong address, it could not count as an agreement.
  • The general issue here was in question as to whether there was a contract between the complainant and defendant and if the claimants indicated a mandatory form of acceptance.

Held by High Court

  • The court held that there was no prescribed or mandatory method of acceptance for a bid.
  • If the offeror wanted to establish a mandatory acceptance method, it would need to be made clear and explicit to the other parties. Thus, an equally effective method of acceptance would be enough to form a valid contract.

Buckley J

  • Where an offer states a mandatory method of acceptance it has to be complied with, alternatively if the offer indicates a method of acceptance without insisting that it is binding, then any other mode which is no less advantageous concludes the contract.

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