BUSINESS LAW: THE RULES WHICH APPLY TO THE ACCEPTANCE OF AN OFFER (AIDED WITH CONCLUDED CASES)
- Written by Isabella Gonda (MBA Student) Acceptance in Law is an expression of assent to the terms of an offer. This must be made by an offeree in a manner requested or authorized by the offeror. An acceptance is valid only if the offeree knows of the offer. The acceptance should be unequivocal and unconditional and the acceptance is manifested according to the terms of the offer. Contractual agreement has traditionally been analyzed in terms of offer and acceptance. One party, the offeror, makes an offer which once accepted by another party, the offeree, creates a binding contract. Once valid acceptance takes place a binding contract is formed. It is therefore important to distinguish what constitutes a valid acceptance in order to establish if the parties are bound by the agreement. There are three main rules relating to acceptance: 1. The acceptance must be communicated to the offeree. 2. The terms of the acceptance must exactly match the terms of the offer. 3.