Offer and acceptance analysis is a traditional approach in contract law used to determine whether an agreement exists between two parties. An offer is an indication by one person to another of their willingness to contract on certain terms without further negotiations. An offer is a promise to do or not to do something in sufficiently clear terms that may be accepted by another. A contract is then formed if there is express or implied agreement. The acceptance of the offeror’s terms must be unconditional. A contract is said to come into existence when acceptance of an offer has been communicated to the offeror by the offeree.
Distinguish between Offer and Acceptance –
- Nature: An offer is an expression of willingness to contract on certain terms, made with the intention that it shall become binding as soon as it is accepted by the person to whom it is addressed, the “offeree”.
- Requirements: The essential requirement is that there be evidence that the parties had each from an objective perspective engaged in conduct manifesting their assent.
- Nature: Acceptance is a final and unqualified expression of assent to the terms of an offer.
- Requirements: The “expression” referred to in the definition may take different forms, such as a letter, newspaper, fax, email and even conduct, as long as it communicates the basis on which the offeror is prepared to contract. The “intention” referred-to in the definition is objectively judged by the courts.