Law of Contract - Acceptance

Section 2(b) of the Contracts Act 1950 defines acceptance: when the person to whom the proposal is made signifies his assent, the proposal is accepted, becoming a promise.
Offeree has the option to accept or reject.
Section 2(c) identifies the promisor (makes the proposal) and promisee (accepts the proposal).

Section 9: Acceptance can be expressed (by words) or implied (by conduct).
Section 8: Acceptance by performing conditions in the offer (e.g., Carlill v Carbolic Smoke Ball Co.) or giving the required consideration (e.g., paying the price).

Acceptance must be absolute and unqualified (Section 7(a)).
Must match the offer's terms (price, goods type, etc.).
Counter-Offer: A non-matching acceptance becomes a counter-offer, which the original offeror can accept or reject. The original offer is automatically revoked.
- Hyde v Wrench (1840): Plaintiff's counter-offer of £950 revoked the defendant's original offer of £1000.
Acceptance must be made in a usual and reasonable manner (Section 7(b)), using typical communication methods (phone, post).
Acceptance must follow the manner stated in the offer (Section 7(b)).

Acceptance must be made within the time stipulated in the offer or within a reasonable time if no time is specified.
- Fraser v Everett [1889]: Acceptance for shares not made within reasonable time.
Acceptance must be made by the offeree or their authorized agent.
Acceptance must be made while the offer still exists.
The offeree must know about the offer.
Acceptance must be communicated.

Silence is generally not acceptance.
- Felthouse v Bindley (1826): The plaintiff could not impose a sale on his nephew by stating silence would be acceptance.

Section 3 of the Contracts Act 1950.
- Instant/Immediate Communication: Face-to-face, telephone, fax.
  - Acceptance occurs when the offeror receives the acceptance.
  - Entores Ltd v Miles Far East Corporation (1955): Contract formed in London where acceptance by Telex was received.
- Communication by Post (Postal Rule): Exception to the general rule.
  - Parties must have contemplated using post.
  - Use of post must be reasonable.

Section 4(2)(a): Acceptance is complete against the proposer when the acceptance is put in transmission (e.g., posted).
- Offeror is bound even if the letter is lost and cannot revoke the offer.
- Offeree is not yet bound and can revoke acceptance.
Section 4(2)(b): Acceptance is complete against the acceptor when it comes to the knowledge of the proposer (offeror receives the letter).
- Both parties are bound, and the offeree can no longer revoke acceptance.
- Ignatius v Bell (1913): Contract existed when acceptance was posted, as parties contemplated using the post.
- Adams v Lindsell (1818): A contract existed from the date the acceptance was posted.

Offeror may stipulate that they will not be bound until actual receipt of acceptance.
- Holwell Securities Ltd v Hughes (1974): Postal rule did not apply because offeror required actual receipt.

Section 5(2): Acceptance can be revoked before the communication of acceptance is complete against the acceptor. *Illustration to Section 5:
- A proposes to sell house to B by post.
- B accepts by letter sent by post.
- B can revoke acceptance anytime before A receives the letter.
Dunmore v Alexander [1830]: Acceptance effectively revoked when the letter of acceptance and revocation were received simultaneously.

Section 4(3)(a): Communication of revocation is complete against the person making it when put into transmission.
Section 4(3)(b): Communication of revocation is complete against the person to whom it is made when it comes to their knowledge.
The offerree may accept the offer even after the offeror has posted his revocation on condition he had not received the letter of revocation from the offeror.
The offeree cannot accept the offer after he received the letter of revocation.
Byrne v Van Tienhoven (1880): Withdrawal of offer was ineffective because acceptance had already occurred.

No agreement without acceptance.
Acceptance must be communicated as per the offer's conditions.
Offer and acceptance create an agreement; whether it's a contract depends on fulfilling other elements.