Chapter 2: Acceptance

3.1

Introduction

5 main aspects of the law governing offers

a) Definition of Acceptance
b) Requirements of Acceptance
c) Modes of communication of Offer
d) Revocation of Acceptance
e) Approach to contract formation
f) Formation of electronic contracts

3.2

Definition

A) Section 2(b) Contracts Act 1950

When the person to whom the proposal is made
signifies his assent, the proposal is said to be
accepted: a proposal when accepted become a
promise:
B) Section 7 Contracts Act 1950
In order to convert a proposal into promise the
acceptance must
a) be absolute and unqualified
b) be expressed in some usual and reasonable
manner
C) An acceptance is an equivocal expression of assent
to the terms of the offer.

3.3

2 Requirements of Offer

1st) Acceptance must be absolute and qualified

a) An acceptance must be an unconditional assent to
the terms proposed in the offer.
b) The acceptance is not absolute or unqualified in
this three situation
A) Counter-offer by the offeree
This can be illustrated in the case of Hyde v Wrench
Fact: Wrench (D) offered to sell his estate to Hyde
(P) for 1200 pounds and he declined. Wrench then
made a final offer for 1000 pounds. Hyde then offered
Wrench to buy his estate for 950 pounds. Wrench
replied that he would consider the offer and gave an
answer within two weeks.
Wrench rejected the offer and then Hyde immediately
replied that he accepted the earlier offer which
Wrench would sell his estate for 1000 pounds.
Wrench refused and Hyde sued for breach of

contract.
Issue: If one party can make an offer, and the
offeree makes a counteroffer, does the original offer
remain open?
Held: The court held that a counteroffer negates the
original offer.
B) Terms of offer amended at the times of the
acceptance.
If the acceptance contains clauses adding on or
amending the offer, it is not absolute and unqualified.
So, there is no valid acceptance.
2nd) Acceptance must be correspond to offer