Acceptance

• Acceptance: Confirms that the terms of the offer are agreed

  • Once an offer is accepted, there is a binding contract
  • Must be communicated to the person who made the offer
  • Can be verbal, written or by conduct
• How an offer is accepted

  • Can be accepted in any way, it doesn't have to be the same method which the offer used
  • The offeror must be aware of acceptance for it to be valid
  • Silence never indicates acceptance - Felthouse v Bindley
• You can specify how acceptance should be communication

  • Directory instructions - Does not put the offeror at a substantial disadvantage, if these are not followed then the contract can still be valid
  • Mandatory instructions - Puts the offeror at a substantial disadvantage, if these are not followed then there is no contract
  • Sometimes the courts can waiver specific methods of communication and make the acceptance valid anyways - Yates v Pulleyn
• Acceptance can take place by conduct

  • This can take place through actions - Carlill v Carbolic Smokeball Co
  • This is valid acceptance
• Acceptance can take place by post

  • Postal rules are followed - these only apply to letters of acceptance
  • The general rule is that acceptance takes place as soon as the letter is posted, following rules must apply:
  • 1. Post must be the usual or expected means of communication
  • 2. Letter must be properly addressed and stamped
  • 3. Offeree must be able to prove the letter has been posted
  • Postal rule was established in Adams v Lindsell
• Acceptance can take place by electronic methods of communication

  • Acceptance occurs when the offeror is aware of acceptance - when it has been received, e.g. email or fax
  • If this is sent outside of office hours, then acceptance will be complete at the start of the next working day - Thomas v BPE Solicitors