Acceptance

Tags

law

A party accepts an offer in a contractual negotiation. Acceptance must be:

• Absolute and Unequivocal - varying the terms or counter-offering is not acceptance.
• Communicated to the offerer - Either vocally, through text or through an action, silence (defined as not saying anything AND not doing anything) isn't sufficient.

Only the final offer presented is considered active, responding with a counter-offer destroys the original offer and it must be offered again to be acceptable.

However in the case that someone submits and agrees to a counter offer which the other party didn't verify, an implicit contract is assumed on the grounds that both parties are in agreement.

Postal Rule

The Postal Rule states that if we transmit an acceptance through post, then even though the acceptance hasn't been received yet the offer is considered accepted. Because otherwise a person can accept a contract and then reject it by quicker means of communication.

Note: This is only valid when the letter has been addressed and posted correctly and it's appropriate to make an acceptance by post.

Rules

• An offer can be terminated any point until acceptance.
• An offer will lapse (expire) after a reasonable time.
• An offer will lapse on the failure of a condition precedent, the value of something upon acceptance of an offer must match the value on recieval of the item. It must be in substantially the same condition with substantially the same value.
• An offer will lapse on the death of the offerer... maybe!