Offer and Acceptance
Offer and Acceptance

Offer and Acceptance

Available Only on StudyHippo
Topics:
  • Pages: 2 (883 words)
  • Published: June 22, 2018
Text preview

When doing a business, a contract is usually needed. Since a contract is an agreement, therefore, for a contract to exist, the parties must assent to the transaction. Assent usually takes the form of offer and acceptance. An offer is defined by Treitel as “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”. In addition, an offer is a statement of the terms on which the offeror is willing to be bound.

When an offer has been made, it doesn’t means a contract has formed until the offeree accepts the offer. 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. Hence, an offer is a promise to do or not to do something which is made by an offeror to an offeree. It may only be accepted by a person who knows that it exists. Thus it can be sent by fax if the offeror had not specified a particular method of acceptance.

First, due to an offer can be expressed by several forms, which letter, newspaper, fax and emails are included. Thus, an offer send by fax is acceptable. Sending an offer by fax would help both offeror and offeree to save time and money, if it happens that both offeror and offeree are busy with something else important, then, sending the offer b

...

y fax would be the best way to deal with this problem. What’s more, offers send by fax are not easy to modify or do some correction, that’s the advantage of sending an offer by fax.

Second, according to the instantaneous communication, if the offeror has not stipulated a method of acceptance, the offeree may choose his own method. One method available to the offeree is instantaneous communication, for instance, telephone or other telecommunications such as fax. Via these, the offerees are able to see or hear the offer more effective. Yet, an offeror can stipulate a specified method of the acceptance. Likewise, the rule is that if instantaneous communication is used by the offeree to accept an offer, the offeror must actually hear or see the acceptance.

It thus means sending an offer by fax can be accepted. A contract is said to come into existence when acceptance of an offer (agreement to the terms in it) has been communicated to the offeror by the offeree. An acceptance is a final and unqualified agreement to the terms of the offer. Acceptance of an offer creates a legally binding contract provided the offeree is willing to contract on certain terms with the offeror. One of the rules of acceptance states that the acceptance must be communicated to the offeror.

Communications (email, fax, facsimile, SMS message or text message) should be equally effective from the time they are received by the offeror. Acceptance made by letter may be considered effective when the letter was

View entire sample
Join StudyHippo to see entire essay
View entire sample
Join StudyHippo to see entire essay

posted, rather than when it was received by the offeror. The communication here means by words, writings or conducts as well, either orally or in writing. Sending an offer by fax would be a convenient way for both offerors and offerees due to it has provided the effectiveness on time.

Besides, the offeror and the offeree must be communicated to make sure there is no misunderstanding or any other situations of miscommunication to happen. As an offeror, do not assume that your offer would definitely be accepted until you has confirmed with your offeree; while as an offeree, do not assume that the offer would be available all the time, before you accept the offer, the offeror has the right to revoke the offer at any time, once an offer has revoked, the offeree don’t have any legal power to accept the offer.

Moreover, an offer can only be accepted by the person, whom the offer is made to, that is, an offeree. If another person accepts the offer on his behalf without his authorization, in that case an offer is not bind. An agency of law can be expected to own the authority to help the offerees to accept the offer, to bind both parties. Furthermore, an acceptance must not have under any conditions. That is to say for instance if other conditions or further steps are required to take the acceptance or the acceptance is subject to the contract, then, in these cases, there is no acceptance considered.

For example, a company offers you a part-time job of typing at home by fax, and after that, you accept, however, the company requires you to pay $50 as the member fee to join the company. In this case, the payment of $50 is further step of the requirements, thus the communication will not to be considered as an acceptance. Hence, there is no contract between these two parties. In conclusion, an offer send by fax is acceptable to the offerees if there not specified a particular method of acceptance. As long as the communication between the offerors and offerees would not break the rules of acceptance, the contract will be formed.

View entire sample
Join StudyHippo to see entire essay