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Acceptance - Types Of Acceptance

offer law person act

An express act or implication by conduct that manifests assent to the terms of an offer in a manner invited or required by the offer so that a binding contract is formed. The exercise of power conferred by an offer by performance of some act. The act of a person to whom something is offered or tendered by another, whereby the offeree demonstrates through an act invited by the offer an intention of retaining the subject of the offer.

In the law of contracts, acceptance is one person's compliance with the terms of an offer made by another. Acceptance occurs in the law of insurance when an insurer agrees to receive a person's application for insurance and to issue a policy protecting the person against certain risks, such as fire or theft. When a person who is offered a gift by someone keeps the gift, this indicates his or her acceptance of it.

Acceptance also occurs when a bank pays a check written by a customer who has a checking account with that bank.

In business dealings between merchants, which is governed by the law of sales, a buyer demonstrates his or her acceptance of goods that are not exactly what he or she had ordered from the seller by telling the seller that he or she will keep the goods even though they are not what was ordered; by failing to reject the goods; or by doing something to the goods inconsistent with the seller's ownership of them, such as selling the goods to consumers of the buyer's store.

FURTHER READINGS

Calamari, John D., and Joseph M. Perillo. 1998. The Law of Contracts. 4th ed. St. Paul, Minn.: West Group.

Chirelstein, Marvin A. 2001. Concepts and Case Analysis in the Law of Contracts. 4th ed. New York: Foundation.

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