To what extent is it true that a contract does not arise until acceptance is communicated to the offeror?

      

To what extent is it true that a contract does not arise until acceptance is communicated
to the offeror?

  

Answers


Maurice
Acceptance if the external manifestation of assent by the offeree. Acceptance of an
offer may be oral, written or implied from conduct of the offeree. Once an offer is
accepted an agreement arises between the parties. It is generally true to say that a
contract cannot arise until acceptance is communicated to the offeror.


(a) Where no method of communication is prescribed the method applicable depends on
the type of offer and the circumstances in which the offer is made.

(b) As a general rule, silence does not amount to acceptance as was held in
Felthouse V.Bindley.

(c) Where parties negotiate by word of mouth in each others presence, acceptance
is deemed complete when the offeror hears the word of acceptance from the offeree.
It was so held in Entores Ltd V. Miles Far East Corporation Ltd.

(d) Where parties negotiate by telephone, acceptance is deemed complete when the offeror
hears the words of acceptance. It was so held in Entores Ltd V. Miles Far
East Corporation Ltd.

(e) Where parties negotiate by telex, acceptance is deemed complete when the
message of acceptance is received by the offeror. It was so held in Entores Ltd V. Miles
Far East Corporation Ltd.

(f) Where the offeror expressly or impliedly authorizes the offeree to communicate
acceptance by post, acceptance is deemed complete when the letter of acceptance is
posted, whether it reaches its destination or not. It was so held in Byrne V.
VanTienhoven. The decision in Henthorn V. Fraser illustrates the postal rule of
acceptance where the offeror impliedly authorizes the offeree to communicate
acceptance by post.

(g) However, a contract could arise without any communication of acceptance by
the offeree, for example:
(i) Where such communication is expressly or impliedly walved by the offeror.
As was the case in Carlill V. Carbolic Smoke Ball Co. Ltd.

(ii) Where acceptance is by conduct as was the case in Carlills case.
maurice.mutuku answered the question on May 1, 2018 at 13:54


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