Acceptance

Acceptance of an offer creates a legally binding contract provided that any persisting
prerequisites are satisfied. An offer may be accepted any means, however if the offer specifies
the means by which it must be accepted, then only that method will suffice to perfect the
formation of the contract.

Acceptance is usually communicated either orally or in writing. It may be inferred by the

conduct of the parties. It is not open for the offeror to say that the offer will be treated as
accepted by the offeree unless he hears differently from them. Mere silence and inaction is
inadequate to constitute an acceptance.

Acceptance must take place while the offer is in force, namely that it has not been revoked or
allowed to lapse. It must be on the same terms as the offer. Where there is a variance between the
offer and the purported acceptance, the purported acceptance is treated as a counteroffer.

Furthermore, acceptance must be unconditional; that is to say for example if some further step is
required, then the communication will not be considered an acceptance. For instance, if the
offeree states the acceptance is subject to contract, the communication cannot be considered an
acceptance as another step would be required to properly form the contract. Lastly, the
acceptance must be communicated to the offeror. Communications (email, facsimile, SMS
message or text message) are equally effective from the time they are received by the offeror.
Acceptance made by letter may be considered effective when the letter was posted, rather than
when it was received by the offeror (the ‘Postal Acceptance Rule’).

Usage: The offer to supply goods and services was accepted by the supplier.

Related Words: counteroffer; lapse of offer; purported; contract; consideration; unilateral

contract; rejection of offer; revocation of offer.