Acceptance

• must be a mirror image to the offer

• Must be communicated through mutually agreed mode or according to the postal rule

• Agreement must be certain

• Can be through Conduct (Smith v Hughes)

Challenges of communication•Delay in post•Clarification of offeree•Revocation amidst delay in post

CAUTION:•Offer and acceptance may not always be visible•Employ the test if the expectation of a reasonable and honest man (Percy Trentham Ltd)

Acceptance

is not

Counter Offer (

Gibson V

Manchester)

Conditional Offer

Must be communicated to

the offeror (Entoresvs Miles Far East

Corporation, 3 important principles

were formed

Silence does not amount to

acceptance (Felthouse v Bindley

where the nephew and an uncle

was negotiating the sale of horse,

the uncle determined that the

silence of the nephew was

acceptance and the horse was sold

on an auction block)

Cross offers does not make a binding

contract (Tinn v Hoffman – A and B writes

each other to sell the same property

which crossed in the post...could not

amount to binding contract)

Conduct represent acceptance

(Carlill v Carbolic smokeball

company)

Must be communicated by the offeree

or an authorised person (Powell v Lee –

P applied for a job as a headmaster

and an unauthorised person told him

he had the job..he sued and action fail

as there was no contract because there

was no authorised communication of

that intention)