To what extent is it true that a contract does not arise until acceptance is communicated to the offeror?

• Acceptance if the external manifestation of assent the offeree. Acceptance of an offer may be oral, written or implied from conduct of the offeree. Once an offer is accepted an agreement arises between the parties. It is generally true to say that a contract cannot arise until acceptance is communicated to the offeror.

 Where no method of communication is prescribed the method applicable depends on the type of offer and the circumstances in which the offer is made.

As a general rule, silence does not amount to acceptance as was held in Felthouse V.Bindley.

 Where parties negotiate word of mouth in each others presence, acceptance is deemed complete when the offeror hears the word of acceptance from the offeree. It was so held in Entores Ltd V. Miles Far East Corporation Ltd.

 Where parties negotiate telephone, acceptance is deemed complete when the offeror hears the words of acceptance. It was so held in Entores Ltd V. Miles Far East Corporation Ltd.

 Where parties negotiate telex, acceptance is deemed complete when the message of acceptance is received the offeror. It was so held in Entores Ltd V. Miles Far East Corporation Ltd.

 Where the offeror expressly or impliedly authorizes the offeree to communicate acceptance post, acceptance is deemed complete when the letter of acceptance is posted, whether it reaches it destination or not. It was so held in Byrne V. VanTienhoven. The decision in Henthorn V. Fraser illustrate the postal rule of acceptance where the offeror impliedly authorizes the offeree to communicate acceptance post.

 However, a contract could arise without any communication of acceptance the offeree, for example.
o Where such communication is expressly or impliedly walved the offeror. Aswas the case in Carlill V. Carbolic Smoke Ball Co. Ltd.
o Where acceptance is conduct as was the case inCarlills case.



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