This document defines acceptance under contract law and discusses key conditions for a valid acceptance: 1) Acceptance must be absolute and unqualified, mirroring the original terms without additions or alterations. Any modification constitutes a counteroffer rather than acceptance. 2) Acceptance must be communicated in a usual and reasonable manner within a reasonable time frame, unless the original offer specifies the manner of acceptance. 3) Case law has established that requests for additional information do not automatically constitute counteroffers, and acceptances are invalid if not communicated through the manner prescribed in the original offer.

1. ACCEPTANCE
PART 01
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2. Acceptance
Definition
S2(b) CA
Electronic contract
ommunication of acceptance
munication by post/ Postal Rule
Revocation of acceptance
inction Between Acceptance &
Counter Offer
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3. Definition of acceptance
• An assent to the terms of a proposal.
• S2(b) of CA provides:
“when a person to whom a proposal is made signifies
his assent thereto, the proposal is said to be accepted;
a proposal, when accepted becomes a promise”
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4. Cont…
The person accepting the proposal is called the
‘promisee’ or the ‘acceptor’.
acceptance can be made in writing, or orally or
by conduct or by a combination of these
methods.
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5. Condition of acceptance
S 7(a)- be absolute
and unqualified
S 7(b)- be expressed in
some usual and reasonable
manner
Ramsgate
Victoria v
Montfiore
Hyde v
Wrench
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6. S. 7(a) absolute & unqualified
• Accepts the term of the contract on
exactly the same term or without any
addition, qualification or alteration.
( mirror image rule)
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7. S. 7(a) absolute & unqualified
Example :
If A makes a proposal to B on term x, y, and
z then B accepts on term x and y only or
w, x, y, z the term is not absolute and it
amount to counter offer.
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8. Counter Offer?
• Where the acceptance is made with
any addition or alteration
• Any modification or variations of an
offer does not constitute an
acceptance.
It known as Counter Offer
. It is also a rejection of the original offer.
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9. Counter Offer
• A person who makes a counter offer = not
making an acceptance but an offer.
– A offer to sell a house at RM 250K=
offeror
– B made a CO at RM 200K = B rejects the
offer and making counter offer. He is
now an offeror
– A = acceptor or promisee.
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10. Hyde v Wrench (1840) 3 Beav
334
• The D offered to sell his property to the
P at 1000 pound.
• However, P agrees to buy it at 950
pound. D refused to accept it.
• 2 days later, P agree to buy the property
at 1000 pound.
• Again, D refused to accept and P sued
for Specific performance.
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11. Hyde v Wrench (1840) 3 Beav
334
• The court held that:
There was no contract created
• no acceptance because the P’s offer to
buy at 950 had rejected the original
proposal.
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12. However...
However, further communication is still
permissible.
Thus, there is differences between Counter
Offer and mere request for information.
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13. Stevenson Jaques & Co. v
McLean (1880) 5 QBD 346
• Saturday- D wrote to the P offering to sell the iron
at 40s per tonne nett cash. He hold the offer until
Monday.
• Monday- the P telegraphed the D at 9.42 am
requesting to know whether the D would accept
40s per tonne iron to be paid over two months or ,
if not, the longest limit the D would give.
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14. Cont...
• 10.01 am: D received P’s letter and subsequently
sold the said iron to a third party.
• 1.25pm: the D telegraphed and informed the P
that he has sold the iron (revoking the offer).
• 1.34: But, the P having had no reply from D, he
telegraphed again and accepting D’s offer.
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15. Cont...
• The P sued for breach of contract and D
pleaded that the telegram sent by P on
Monday (9.42 am) was a rejection of the his
offer .
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16. Cont...
The court held:
• the D was in breach of contract as the
telegram by P was meant only for
further information and does not
constitute a counter offer.
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17. 7(b) accepts in usual and reasonable
manner.
S. 7 (b) of CA:
...Based on reasonable time and
reasonable method/manner ; UNLESS
the proposal prescribes the manner in
which it is to be accepted.
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18. Ramsgate Victoria Hotel Co. v
Montefiore (1866) LR 1 Ex Ch 109
8 June- The D applied for shares in the P’s
company and had paid a deposit.
He received no further news from P until 23
November when he has been informed that the
shares had been allotted to him and that he
should pay the balance due on them.
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19. Ramsgate Victoria Hotel Co. v
Montefiore (1866) LR 1 Ex Ch 109
The court held that:
there was no valid binding contract
because acceptance was not made within
reasonable time.
(June- November)
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20. Fraser v Everett (1889) 4 Ky 512
(other case)
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21. Eliason v Henshaw
The A offered to buy flour from R. He further
requested that the acceptance of the same
should be sent to him at Harper’s Ferry within
the prescribed time.
The R then sent his letter of acceptance by mail
and thinking that it would reach the A faster.
Unfortunately, the letter arrived after the
prescribed date.
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22. Eliason v Henshaw
The issue :
Whether the said acceptance is valid?
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23. Eliason v Henshaw
Court held that:
A entitled to reject the acceptance made since it
not follow the prescribed mode of acceptance.
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24. Continue to Part 02
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