Necessity to communicate acceptance of an offer to the other party to the contract

Acceptance is one of the basic elements of a contract. Acceptance of an offer gives rise to an agreement between the parties. Question is whether acceptance must be communicated to the offeror in all cases. The answer to this question is generally yes as:

Acceptance must be communicated in the prescribed method, if any or in an equally expeditious method.
If no method is prescribed, the method applicable depends on the type of offer and the circumstances in which it is made.
As a general rule silence does not amount to acceptance. It was so held in Felthouse V.Bindley.

Where parties negotiate word of mouth in each other presence, 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.
Where parties negotiate telephone, acceptance is deemed complete when the offeror hears the words of acceptance it was so held in Entores Ltd V. Miles Far
EastCorporation.
Where parties negotiate telex acceptance is deemed complete when the offerees message of acceptance is received the offeror. It was so held in Entores Ltd V. MilesFar East Corporation
Where the offeror expressly authorizes the offeree to communicate acceptance post, acceptance is deemed complete when the letter is posted whether it reaches its destination or not. As was the case in Adams V. Lindsell.
Where the offeror impliedly authorized the offeree to communicate acceptance post, acceptance is deemed complete when the letter is posted whether it reaches its destination or not. As was the case in Byrne V. Van Tienhoven.
Where the offeror does not expressly or impliedly authorizes the offered to communicate acceptance post, but he does so, acceptance is deemed complete when
it is received the offeror.
However, acceptance need not be communicated in all cases for an agreement to arise for example:
– Where acceptance is conduct as was the case in Carlill V. Carbolic SmokeBall Co. Ltd there is no communication.
– Where communication of acceptance is expressly or impliedly waived the offeror. As was the case in Carlills case.

 

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