Acceptance: Definition, Example and Related Terms
What is Acceptance ?
For acceptance to be valid, several conditions must be met: it must be communicated to the offeror, be made while the offer is still open, and match the terms of the offer exactly without modifications. If the response to the offer changes the terms, it is considered a counter-offer rather than an acceptance.
Acceptance can be communicated in various ways, including verbally, in writing, or by action, depending on the mode of acceptance specified in the offer. For example, a handshake, signing a document, or sending a confirmation email could all signify acceptance.
Understanding the requirements and implications of acceptance is crucial in contract formation. It ensures that both parties are on the same page and have mutually agreed to the terms, minimizing the risk of disputes and misunderstandings down the line.
Example(s)
Scenario Description A company offers a job to a candidate with specific terms and conditions. If the candidate sends back a signed employment contract, this constitutes acceptance of the offer, creating a legally binding contract. An online shopper places an order on a retail website. When the retailer sends a confirmation email acknowledging the order, this serves as their acceptance of the shopper's offer to purchase, forming a contract for sale. A supplier receives a purchase order from a client. If the supplier ships the goods as per the purchase order, it demonstrates acceptance of the order's terms, creating a binding contract.