“An acceptance is a final and unqualified expression of assent to the terms of an offer.” - Treitel
As with offers it can sometimes be difficult to distinguish an acceptance from other responses to offers.
Counter offers
If in his reply to an offer, the offeree introduces a new term or varies the terms of the offer, then that reply cannot amount to an acceptance.
A counter-offer destroys the original offer. The following case is the classic authority for this point.
Hyde v Wrench
Mr Wrench offered to sell his farm to Hyde for £1,000. Mr Hyde at first made a counter offer of £950, but then two days later agreed to pay £1,000. Wrench refused to complete the sale and accordingly Hyde brought an action demanding that the contract be enforced. However, the court ruled that the effect of the counter offer was to destroy the original offer (Hyde v Wrench [1880] 5 QBD 346).
Requests for information
In the course of negotiations it is important to distinguish a counter offer from a request for more information. Although such a request will not make an acceptance, unlike a counter offer, it does not destroy the original offer (Stevenson v Mclean (1880)).
Examples
1. Offer:
Will you sell me your car for £500?
Counter offer:
I will take £750 for it.
IN THIS EXAMPLE THE COUNTER OFFER HAS NOW DESTROYED THE ORIGINAL OFFER.
2. Offer:
Will you sell me your car for £500?
Request for information:
Well, I was looking for more – would that be £500 cash?
IN THIS EXAMPLE, THE REQUEST FOR INFORMATION HAS NOT DESTROYED THE ORIGINAL OFFER. IT CAN STILL BE ACCEPTED.
Communication of acceptance
The general rule is that an acceptance must be communicated to the offeror. Until and unless the acceptance is so communicated, no contract comes into existence.
The acceptance must be communicated by a person with authority.
Powell v Lee ([1908] 99 LT 284)
The plaintiff applied for a job as headmaster and the school managers decided to appoint him. One of them, acting without authority, told the plaintiff he had been accepted. Later the managers decided to appoint someone else. The plaintiff brought an action alleging that by breach of a contract to employ him he had suffered damages in loss of salary. The county court judge held that there was no contract as there had been no authorised communication of intention to contract on the part of the body, that is, the managers, alleged to be a party to the contract.
The receipt rule
The general rule is that the acceptance will only take effect when the acceptance has been received by the offeror. This is known as the receipt rule. This rule is subject to a very odd exception where an acceptance is posted.
As with offers it can sometimes be difficult to distinguish an acceptance from other responses to offers.
Counter offers
If in his reply to an offer, the offeree introduces a new term or varies the terms of the offer, then that reply cannot amount to an acceptance.
A counter-offer destroys the original offer. The following case is the classic authority for this point.
Hyde v Wrench
Mr Wrench offered to sell his farm to Hyde for £1,000. Mr Hyde at first made a counter offer of £950, but then two days later agreed to pay £1,000. Wrench refused to complete the sale and accordingly Hyde brought an action demanding that the contract be enforced. However, the court ruled that the effect of the counter offer was to destroy the original offer (Hyde v Wrench [1880] 5 QBD 346).
Requests for information
In the course of negotiations it is important to distinguish a counter offer from a request for more information. Although such a request will not make an acceptance, unlike a counter offer, it does not destroy the original offer (Stevenson v Mclean (1880)).
Examples
1. Offer:
Will you sell me your car for £500?
Counter offer:
I will take £750 for it.
IN THIS EXAMPLE THE COUNTER OFFER HAS NOW DESTROYED THE ORIGINAL OFFER.
2. Offer:
Will you sell me your car for £500?
Request for information:
Well, I was looking for more – would that be £500 cash?
IN THIS EXAMPLE, THE REQUEST FOR INFORMATION HAS NOT DESTROYED THE ORIGINAL OFFER. IT CAN STILL BE ACCEPTED.
The general rule is that an acceptance must be communicated to the offeror. Until and unless the acceptance is so communicated, no contract comes into existence.
The acceptance must be communicated by a person with authority.
Powell v Lee ([1908] 99 LT 284)
The plaintiff applied for a job as headmaster and the school managers decided to appoint him. One of them, acting without authority, told the plaintiff he had been accepted. Later the managers decided to appoint someone else. The plaintiff brought an action alleging that by breach of a contract to employ him he had suffered damages in loss of salary. The county court judge held that there was no contract as there had been no authorised communication of intention to contract on the part of the body, that is, the managers, alleged to be a party to the contract.
The receipt rule
The general rule is that the acceptance will only take effect when the acceptance has been received by the offeror. This is known as the receipt rule. This rule is subject to a very odd exception where an acceptance is posted.
