09-09-2013, 04:19 PM
Acceptance
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Acceptance Defined
A manifestation of willingness to be bound by the terms of an offer made in a manner invited or required by the offer.
An acceptance of an offer must be absolute and unconditional.
In order for the acceptance to be effective all of the terms of the offer must be accepted without change or condition.
Acceptance results in the formation of a contract: both parties are bound and neither can withdraw from the bargain without incurring liability to the other.
Ordinarily, acceptance must be expressed or communicated by the offeree to the offeror, in order to manifest mutual assent.
Mirror Image Rule
At common law, an acceptance which added qualifications or conditions or which in any way varied from the terms of the original offer was treated as a rejection and counter offer. This was true no matter how trivial the qualification or condition.
This was known as the "Mirror Image Rule." The underlying rationale is that the making of a counteroffer communicates to the offeror that the offeree does not wish to accept the offer.
Manner of Acceptance
Traditional Approach
Traditionally, the nature of the contract dictated whether the offer could be accepted by a return promise or by actual performance of the promised act.
Acceptance by Performance; Unilateral Contracts
In a unilateral contract, the offer empowers the offeree to only accept by complete performance of the promise. The offeree's failure to perform does not constitute a breach since no contract is formed until the offeree renders full performance.
Inquiry into the terms of the proposal- not a counter proposal.
Where all the proposed terms are accepted and the counter proposal related only to the technical details of the proposal, the acceptance is binding.
Acceptance with condition subsequent- not a counter proposal.
Acceptance by a person to whom the proposal was not addressed is no acceptance.