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Paragraph 1 * Acceptance is a clear and undoubted assent to the offer and all of its terms. * The law regard as acceptance when the offeree accepted the offeror’s offer. * Not acceptance is when one party disputes whether the other accepted the offer. * Acceptance is important because acceptance will lead to agreement to be formed and contract will comes into existence.
Paragraph 2 * 4 rule in acceptance which are, acceptance must be clear and undoubted, offeror requirements must be met, acceptance in reliance upon the offer and acceptance must be communicated. * Mirror image rule is the rule of contracts that prohibits an offeree from changing the terms of that offer * The alteration in terms of the offer by the acceptance voided the agreement and there will no contract exists. * The rationale of the mirror image rule is to ensure the acceptance is final and absolutely unconditional so that blinding contract can be done.
Paragraph 3 * Conditional or qualified acceptance is as long as the conditions are not satisfied, an acceptance give subject to a condition will not operate * A conditional acceptance is not a blinding agreement due to acceptance must be final and absolutely unconditional. * This type of acceptance operates as a counter offer, therefore this will destroy the first offer. * The purpose of inserting “subject to contract” means parties does not want to be bound by the contract until it become the written contract.
Bibliography: Book 1) David Parker and Gerald Box, Business Law For Business Student 2011 (Lawbook Co, 1st ed, 2011) 2) Stephen Graw, An Introduction to the law of Contract (LBC Information Services, 3rd ed,1998). Case Law 1) Australian Woollen Mills Pty Ltd v The Commonwealth (1955) 93 CLR 546 (Privy Council) 2) Redowood Pty Ltd v Mongoose Pty Ltd [2005] NSWCA 32 (Spigelman CJ, Tobias JA and Bryson JA)