UNIVERSITY OF IRINGA

FACULTY OF LAW

BACHELOR IN LAW

COURSE NAME: LAW OF CONTRACT

INSTRUCTOR’S NAME: MR.

NATURE OF WORK: GROUP ASSIGNMENT

DUE DATE: NOVEMBER 2022.

GROUP NUMBER: Group NO: Assignment

S/N NAMES OF STUDENTS REG.NO SIGNATURE

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QUESTION: Unless offer is accepted, there can be no promise. In light with this statement,
illustrate basic requirements for acceptance in contract formation.

ACCEPTANCE
Acceptance is the agreement to an offer resulting in the duties, obligations or benefits for one or
more of the parties. Acceptance can be expressly stated in writing or verbally, or implied through
action or conduct. In order words for acceptance to be valid, certain conditions must be met.
There must be an offeror and offeree whom are parties to the offer, and effective acceptance. An
offeror is the person that proposes the offer or promise, and offeree is the person who receives
the offer and provides feedback of acceptance or not to the offeror.

An acceptance is an unconditional assent to the terms of the proposal. The word unconditional
means that the terms of the acceptance must not set new conditions apart from those stated in the
offer.

When a person to whom an offer is made signifies his assent thereto, the offer is said to be

Acceptance maybe expressly or impliedly from the conduct of parties. According to section 2(1)
(b)1 of the Law of contract, state’ ’When the person to whom the proposal is Furthermore it shown
in the case of Carlill v Carbolic Ball company the material fact of the case was that the defendants were
the manufactures of smoke balls which they claimed could prevent flu. They published advertisements
stating that if anyone used their smoke ball for a specified time and still caught flu, they would pay that
person £ 100, and that to prove they were serious about the claim, they had deposited £ 1,000 with
their bankers.

Mrs Carlill bought and used a smokeball , but nevertheless ended up with flu. She therefore claimed the
£ 100, which the company refused to pay. They argued that their advertisement could not give rise to a
contract, sice it was impossible to make a contract with within the whole world , and that therefore
they were not legally to pay the money .This agreement was rejected by the court , which held that
the advertisement did constitute an offer to the world at large, which became a contract when it is
accepted by Mrs Carlil smoke ball and getting flu. She was therefore entitled to the £100.

Therefore according the nature of the question it needs to discuss the legal rules as to acceptance, a
valid acceptance must satisfy the following rules:-

1. That offeree must have been aware of and intended to accept the offer,

1
The Law of contract Act cap 345 Revised edition (2019)
A person cannot accept an offer whose existence he is unaware of In CROWN V CLARKE2, the material
fact of the case was that, the Australian government offered £ 1,000 to any person whom volunteered
information leading to the arrest and conviction of the killers of 2 police officer. Any accomplice who
gave information would be pardoned. Clarke, who was aware of the murder, gave the information and
killers were arrested and convicted. However, he made it clear that he had given the information to
clear his name.

The held of the case was that he was not entitled to the reward as he had given the information
for a different purpose and therefore had not accepted the offer

2. That acceptance must be unconditional and unqualified,

Section 7(a) of the law of contract act 3states “in order to convert a proposal in to a promise, the
acceptance must-(a) be absolute and unqualified.

This means that once the offeror makes his offer it has to be absolute, no funny business the offer
given to the oferee should be the right offer; it should be expressed in a reasonable manner. The
offeree must accept the offer in its terms, any variation or modification of the offer amounts to a
conditional acceptance which is not an acceptance. Furthermore shown in the case of HYDE V
WRENCH 4
where the offeror/defendant, Mr. Wrench offered to sell his farm, he offered to sell
the property for E1, 200, but this was declined by Mr. Hyde. The defendant reduced his price to
E1, 000 he made it clear it would be his final offer regarding his property. The offeree Mr. Hyde
offered E950. Mr. Wrench refused his offer later Mr. Hyde the oferee agreed to buy the property
for E1, 000, which was the sum that had previously been offered. However Mr. Wrench refused
to sell his farm.

3. Acceptance of an offer must be accepted within stipulated time or in reasonable

time before the time lapses.

2
(1927)
3
Section 7(a) of the law of contract act
4
(1840)49ER132
In the case of RAMSGATE VICTORIA HOTEL V. MONTEFOIRE5in this case the
defendants offer was made in June was not accepted until November by which the time had
elapse, hence in a similar case of E.A INDUSTRIES LTD V. POWYSLANDS 6which occurred
in east Africa explains the same issues at hand.

4. Acceptance must be Communicated

An offer is said to be effective if communicated when it comes to be knowledge of the offeree

as par section 4(2) of contract act7. Acceptance is only effective when the offeree and offeror
have communicated with each other either by words, written or implied. Further, more when the
offeree accepts the proposal, he must have known that an offer was made. He/she cannot
communicate acceptance without knowledge of the offer. Example Mr. Lamarck offers to sell his
vehicle to Mr. Abel, he provides full information to him of his offer and Mr. Lamarck will have
to accept the offer either by words, written or implied.

5. Acceptance must be expressed or implied.

Once the offer is laid in the table the offeree has the duties to replay or provide feedback of his
answer to the offeror either expressed by words or writing or implied by conductor actions. This
is provide for in section 9 of the law of contract act [CAP345 R.E2019]8

9“ In so far as the proposal or acceptance of any promise is made in words, the promise is said to
be express; and in so far as such proposal or acceptance is made otherwise then in words, the
promise is said to be implied.”

Generally acceptance occurs when the offeree expressly accepts the offer made by the offeror,
example paying the asking price of the goods on sell and by the offeree following the legal rules
as to acceptance, a valid acceptance. This binds both parties to an agreement. According to section
2(1) (b) of the Law of contract.9

5
(1866)LR1 EX 109
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E.A industries ltd v. Powyslands
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section 4(2) of contract act
8
section 9 of the law of contract act
9
section 2(1) (b)