Acceptance

• In order to form a binding contract, there must be an offer made by one party that is accepted by another. Acceptance is 'the unconditional assent to all the terms'. For an acceptance to be valid, it must be positive, unconditional and taken place before acceptance.
• If a method of acceptance is insisted then the offeror has included a mandatory instruction and it must be complied with (Yates v Pulleyn). However, if the instructions are merely a suggestion then any method will suffice as long as it is effective and does not disadvantage the offeror (Tinn v Hoffman). Usually, the acceptance will mirror the method the offer was made. Acceptance can be verbal, written or in unilateral contracts by conduct (Carlill v Carbolic Smokeball Company).
• Under the postal rule (Adams v Lindsall), acceptance takes place when the acceptance letter is posted if that is the usual way of communicating (Howell Securities v Hughes), but must actually go into the post box (Re London v Northern Board). The letter must be properly addressed and stamped and the offeree be able to prove it was posted then it forms a valid contract even if the letter is not received by the offeror (Household Fire Insurance Co v Grant).
• For instantaneous methods of communication, acceptance takes place when it has been received (Entores v Miles) during normal working office hours (Brinkibon v Stahag) not when read (Thomas v BPE Solicitors).
• The acceptance must be unconditional so must agree to all the terms of the offer (Hyde v Wrench / Stevenson v McLean)
• Finally, the acceptance of bilateral contracts must be communicated to the offeror and cannot be by silence or doing nothing (Felthouse v Brindley). If it involves a unilateral contract then the acceptance is the start of the act and the acceptance need not be communicated to the offeror (Carill v Carbolic Smokeball Company).