acceptance of an offer in contract law
Acceptance of an offer under Dutch contract law. Even though the parties may have appeared to make an agreement by the exchange of a matching offer and acceptance, the courts may refuse to enforce it if there appears to be uncertainty about what has been agreed, or if some important aspect of the agreement is left open to be decided later. A proposal/offer and its acceptance is the universally acknowledged process for making a contract of which the former is the beginning point. In order to really understand the meaning of communication of acceptance, we should consider the following: A pertinent question to ask is “where does acceptance take place?”. Significance of deposit as indicative of seriousness of offer. The respondent replied that it ‘accepted’ the offer but it asked for an extension of two weeks. The counter offer terminated the initial offer and was a new offer which the appellant could either accept or reject. Additionally, requiring O for £100 to trade in old van. Implied obligation without which no contractual relationship. ELEMENTS OF CONTRACT OFFER AND ACCEPTANCE Definition Offer / Proposal Offer + Acceptance = Agreement Section 2(a) CA 1950 : “ A proposal is made when one person signifies to another his willingness to do or to abstain from doing anything, with a view to obtaining of that other to such act or abstinence”. Only applies if reasonable for offer to be accepted by post. explanation of part of the rules on formation of contract in English law The doctrine of offer and acceptance has proved to be a viable and flexible tool to assess contract formation. B. Section 2(a)defines a proposal as “when one person signifies to another his willingness to do or abstain from doing anything, with a view of obtaining the assent of that other to such act or abstinence, he is said to make a proposal.” The person who makes the proposal is c… An example is if an agreement is subject to a contract. 3. C send an application for the purchase of the house . S was offered an option to purchase the freehold of a property at a price that requires the agreement of two surveyors, one appointed by each party. There are several rules dealing with the communication of acceptance: The acceptance must be communicated. This has led to the general rule on advertisements. Thus, if an acceptance is posted in Nigeria it becomes valid when it is received in America.Therefore acceptance is valid at the moment of acceptance. Brogden v Metropolitan Railway (1877) 2 App. It is the willingness of one party to enter into a contract with another party according to the terms set out by the offering party. 3.The agreement must be certain. Harvela v Royal Trust of Canada  A.C. 207. Invitation to treat is an initial communication not intended to be open to acceptance (steps in the pre-contractual process; negotiating steps). n agreement giving rise to legal obligations, is significant to a contract. The provisions of the English legal system would be considered then the provisions of the Nigerian legal system would also be examined. This is due to the fact that when a letter of acceptance is already posted, there is a binding contract. Blackpool and Fylde Aero Club v Blackpool BC  EWCA Civ 13. When the offer is accepted it becomes a promise. Claim in conversion by uncle F against auctioneer. Automatic ticket machines bind C the moment he puts money in the machine and receives the ticket. The telegram in this case got to the offeror before the acceptance by post. However, in the United States case of Dick vs Us there was an acceptance by post that was revoked by telegram. Treitel, The Law of Contract, 10th edn, p.16]. The request was however headed “subject to contract”. Dr Hughes offered Howell Securities the option to purchase his house for £45,000. This was an offer, not an invitation to treat. What happens if the other party’s reaction does not match the offer exactly? Depends on ‘the intention of the parties and surrounding circumstances’. Assent to the terms of an offer.. Option contracts are generally found when dealing in securities, commodities, or real estate. Where method of acceptance is not prescribed. Offer is accepted by performance of the act. It was held that due to this, the acceptance was successfully revoked. There have to have an offer offered by one party which is accepted by the other. Acceptance occurs when an offeree agrees to be mutually bound to the terms of the contract by giving consideration, or something of value like money, to seal the deal. For an acceptance to be valid these three criteria s must be satisfied: 1. An acceptance is that, a concluding and incompetent expression of consent to the terms of an offer. If no manner of acceptance is specified by the offer, then acceptance may be made in a manner that is reasonable under the circumstances. However, Nnaemeka Agu JSC added that if all the basic terms to the contract have been agreed upon, the insertion of ambiguous words was just mere “cosmetic surplussage.”. Claim failed-at relevant time horse still owned by n- no concluded contract with u bec no acceptance: H wrote to T an offer to sell him 800 tons of Iron.H requested in the letter to T to reply to the offer by post. You can also define acceptance as an offeree’s assent, either by express act or by implication from conduct, to the terms of an offer in a manner authorized or requested by the offeror, so that a binding contract is formed. PL sellers in London made offer by telex to sellers (agents) in Holland. In the case of Winn vs Bull it was decided that this meant that the acceptance is not complete until the drawing up of a formal contract. Thus, the defendant was held liable. Here is a case “Felthouse v Bindley (1862)” which is about accepting an offer properly. 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