How to Accept an Offer?
The procedure for responding (
acceptance) can be done by following the instructions that may have been specified by
offerorin his offer letter.
Clarity regarding what is offered and awareness of the legal consequences are very important. This is in line with Article 1342 of the Civil Code, "If the words of an agreement are clear, it is not permissible to deviate from them by means of interpretation."
Comparison with the Common Law System
When compared to the
common lawsystem, the conditions for a valid contract differ slightly in emphasis, although the essence is similar:
- There must be an offer (Offer).
- There must be acceptance (Acceptance).
- The contracting parties must have Capacity.
- There must be Consideration (reciprocal performance, something of value that is exchanged).
- There is a Lawful Cause (A lawful cause).
- There must be Intention to create legal relation (Intention to be legally bound).
Unlike the Civil Code which combines it in "agreement",
Common Lawexplicitly lays down
offerand
acceptanceas separate elements.
When Does an Offer (Offer) Become Effective?
International principles regarding contracts (UNIDROIT Principles of International Commercial Contracts) affirm when an offer becomes binding.
Article 2.1.2 (Principle): A proposal for concluding a contract constitutes an offer if it is sufficiently definite and indicates the intention of the offeror to be bound in the case of acceptance. (A proposal for concluding a contract constitutes an offer if it is sufficiently definite and indicates the intention of the offeror to be bound in the case of acceptance.)
Article 2.1.3 (Principle): (1) An offer becomes effective when it reaches the offeree. (2) An offer, even if it is irrevocable, may be withdrawn if the withdrawal reaches the offeree before or at the same time as the offer. (An offer becomes effective when it reaches the offeree. An offer, even if it is irrevocable, may be withdrawn if the withdrawal reaches the offeree before or at the same time as the offer.)
This principle affirms that as long as
offerhas not been accepted, the offeror can change or cancel it. However, if
offerhas been accepted (
acceptance), a contract has occurred and cannot be simply cancelled.
Offer Criteria According to Legal Experts
To categorize a statement as
offerthat will create a contract, experts provide clear criteria.
According to
Henry R. Cheeseman, there are three important measures:
- The offeror must objectively intend to be bound by the offer.
- The terms of the offer must be definite or reasonably certain.
- The offer must be communicated to the offeree.
A more stringent definition is described by
J. Beatsonin
Anson’s Law of Contract:
An offer is an intimation, by words or conduct, of a willingness to enter into a legally binding contract, and which in its terms expressly or impliedly indicates that it is to becoming binding on the offeror as soon as it has been accepted...
Closing
Understanding the four legal requirements of an agreement according to Article 1320 of the Civil Code—especially the "agreement" process formed from
offerand
acceptance—is crucial. Failure to meet any of these conditions, whether subjective or objective, may result in the contract being voidable or even null and void.
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