Offer and acceptance

• Offer


  A promise by one party to enter into a contract on certain terms
• Acceptance


  A promise in return for the offer, binding the contract
• Offer and acceptance


  1. Offer made

  2. Offer accepted

  3. Contract formed
• An offer is a promise by one party to enter the contract on certain terms
• Acceptance is a promise in return, binding the contract
• Acceptance can be by conduct, such as performing the requested act
• An invitation to treat is merely an indication of willingness to negotiate and does not constitute an offer
• If the offeree makes a counter-offer, this rejects the original offer
• Acceptance is generally effective on posting, not receipt (postal rule)
• The postal rule may not apply to modern communication methods like email
• For electronic communications, acceptance is valid when the offeror is capable of accessing it
• The law has struggled to deal with issues arising from modern methods of communication