Contract Acceptance | Mailbox and Mirro Image Rule | Business law | CPA Exam REG

In this video, I discuss the various methods an offeree accept an offer from offeror.
Start your free trial: ✅farhatlectures...
Acceptance in contract law is a crucial element, as it signifies the agreement of the offeree to the terms of the offer made by the offeror. For a contract to be formed, acceptance must be clear, unambiguous, and in accordance with the terms of the offer. Here are some key aspects of acceptance:
Unconditional and Mirror Image Rule:
Acceptance must be an unequivocal agreement to all the terms of the offer. This is known as the "mirror image rule." Any change or addition to the terms of the offer is not acceptance but a counteroffer, which the original offeror can then accept or reject.
Manner of Acceptance:
The offer may specify a particular method of acceptance, such as in writing or by performing a specific act. If the offer does not specify a method, acceptance can take any reasonable form given the circumstances, including conduct.
In some cases, silence or inaction can constitute acceptance, especially if the parties have a prior relationship that established such a pattern, but this is less common.
Communication of Acceptance:
Generally, acceptance must be communicated to the offeror. This could be verbal, written, or through conduct that clearly indicates acceptance.
In the case of unilateral contracts (where acceptance is by performing an act), the completion of the act is usually sufficient for acceptance without direct communication.
Timing:
Acceptance must occur before the offer expires. Offers can lapse after a stated period, or after a reasonable time if no duration is specified.
If acceptance is sent by post or other means, it is generally effective when dispatched (the "postal rule"), not when received, unless the offer specifies otherwise.
Knowledge of the Offer:
The offeree must know of the offer at the time of acceptance. Acceptance cannot occur if the offeree is unaware of the offer.
Legal Capacity:
Both parties must have the legal capacity to enter into a contract. This means they must understand the terms and consequences of the contract and must not be under duress, undue influence, or impaired.
Example of Acceptance:
Imagine a scenario where Eliza offers to sell her bicycle to Frank for $100. Frank agrees to buy the bicycle for $100, clearly and unambiguously, and communicates this acceptance to Eliza within the time frame she set. This constitutes a valid acceptance, and a binding contract is formed.
In summary, acceptance in contract law is the clear, unambiguous agreement to the terms of an offer, communicated to the offeror, often within a specified time frame. It is a key element in the formation of a legally enforceable contract.
#cpaexaminindia #cpaexam #accountinglectures