Acceptance Is An Essential Element Of A Binding Contract

Acceptance-This basically means that the terms of the offer have been clearly understood and agreed to through consent and assent and at no time will the terms be changed.

The offer and acceptance model is flawed- only an agreement is necessary. In order to fully comprehend this statement, we must first establish what constitutes and offer and what constitutes acceptance. “An offer is a statement by one party of willingness to enter into a contract on stated terms, provided that these terms are, in turn, accepted by the party to whom the offer is addressed”. Acceptance is “…an unqualified expression of ascent to the terms proposed by the offeror”. The “Offer and acceptance model” is based on the court’s adopt the “mirror image” rule of contractual formation. Applying the definitions stated above, we can take this to mean that there must be a clear and unequivocal offer which must be matched by an equally

Agreement: There must be an offer coming from the offeror and an acceptance of this offer by the offeree. Mutual consent is required.

Acceptance: The contract is said to be made once the offer has been accepted. An offer is accepted by the offeree when the offeree accepts certain terms of the offeror. While accepting offer certain rules are to be applied such as only the offeree can accept the

Acceptance- As a general proposition of law, the acceptance of the offer made by one party by the other party

c. A conditional contract is an agreement that is satisfied only if the execution of another agreement or other specific conditions.

The contract involved as stated, an “offer”, which is a communication of willingness to carry out an action on certain circumstances, which are made with the purpose that an compulsory agreement will exist once it is accepted, and an ‘acceptance’ which is the ultimate and complete agreement to all of the terms of the offer.

2. Acceptance. As a general proposition of law, the acceptance of the offer made by one party by the other party is what creates the contract. This acceptance, as a general rule, cannot be withdrawn, nor can it vary the terms of the offer, or alter it, or modify it. To do so makes the acceptance a counter-offer. Though this proposition may vary from state to state, the general rule is that there are no conditional acceptances by law. In fact, by making a conditional acceptance, the offeree is rejecting the offer. However the offerer, at his choosing, by act or word which shows acceptance of the counter-offer, can be bound by the conditions tendered by the offeree.

Offer & Acceptance: To come to an agreement, offer and acceptance are required, to begin to determine if a legally binding contract has been formed. A contract requires “Offer & Acceptance, Valuable Consideration, Intention and capacity” explain Uher & Davenport (2002). The offeror must offer something of value to which an offeree may then accept.

Agreement: composed of an offer to enter into a contract and acceptance of the contract.

Contractual agreements are supposed to be consensual, and freely entered into by the parties involved. Therefore, ‘before a court enforces a relationship as a contract, the courts must have a reasonably certain basis in fact to justify binding the parties to each other.’ (St. John’s Law Scholarship Repository, no date). Resolution of whether a contract was intended to be legally binding is not determined by what the parties themselves thought or intended. Rather, a more objective stance is taken by the courts. This is known as the objective theory of contract, and essentially enables ‘the courts to look at external evidence (what the parties said and did at the time)’ (Poole, 2006, p. 34), as to objectively indicate the parties’ intentions

In BROGDEN v METROPOLITAN RAIL CO it was held the railway company had accepted by placing orders since the amendment of the document, and in TRENTHAM LTD v ARCHITAL LUXFER the court used the 'reasonable man' to identify whether or not there has been acceptance. Both cases seemed to have reasonable outcomes; therefore the courts had been provided with satisfactory rules to help them reach a appropriate verdict. There are various different rules regarding acceptance. There must be a communication of acceptance from the offeree to the offeror. The case of YATES BUILDING v PULLEYN deals whether there had been a prescribed acceptance or not. It was held that there was no practical difference to the offeror therefore the acceptance method was binding. However in the case of ENTORES LTD v MILES FAR EAST CORPORATION there was no prescribed acceptance, yet it was held that the contract was formed in England as that was there acceptance had been received by telex. Other rules that can be used to decide whether there has been acceptance include a waiver of communication of acceptance; silence, which isn't a valid acceptance; ignorance, generally there isn't a binding contract; and acceptance via post using the postal rule. The postal rule can often be misused, as it states that a contract has been formed as

Under contract law, the method of communicating the acceptance is also means as a condition for contract to be bound, and it seem to be a conditional acceptance. If the offeror, when making the offer, enforce any condition as to how the offer is to be accepted, then the offeree have to comply all those condition to achieve valid acceptance.

In the article “Consideration - in Acceptance of Contract”， this support Robert’s (2015) evidence that if an act is performed then a subsequent promise to pay by reference to that act is not enforceable as the consideration was past. Other that, he also noted that if there was an implication; the past promise to pay is enforceable.

Rules of Offer and Acceptance are applied to enforce an agreement by the law. This agreement is the first requisite of any contract of the business. In order to a contract come into being between parties, the offer is made by the offeror and the oferee accept that offer. In 21st century, there are rapid changes in business trend which create lots of new business model such as e-business and global business. The more business participates, the more requirements of Offer and Acceptance Rules to adapt to the change. In this essay, we are going to look at the Rules of Offer and Acceptance, how do they affect business contract and whether these rules make good business sense in 21st century or not.