Also known as: modes of acceptance · manner of acceptance · method of acceptance
Written by attorneys · grounded in primary & secondary sources — see below
A prescribed or suggested method by which an offeree may manifest assent to the terms of an offer. Compliance with a required method creates the contract while a suggested method permits other reasonable approaches.
Miranda Morales offered to sell her warehouse to Meridian Motors only if the buyer signed and returned the written agreement by certified mail within ten days. Meridian Motors instead emailed a signed copy. The court held that the email failed to create a contract because the offer required a specific manner of acceptance.
Mosaic Retail ordered 500 units from Matrix Technologies and stated that shipment would constitute acceptance. Matrix Technologies began production but failed to notify Mosaic Retail within a reasonable time. Mosaic Retail treated the offer as lapsed and purchased the goods elsewhere.
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Mohan Malhotra was named trustee of a family trust that required acceptance by signing a form and recording it. He instead emailed the beneficiaries that he was assuming the role and immediately began collecting rents and managing the properties. The court found that his actions substantially complied with the prescribed method and constituted acceptance.
An offer requires strict compliance when it prescribes the place, time, or manner of acceptance as a condition for forming a contract. A mere suggestion of a permitted method allows other reasonable approaches.
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Beginning performance is a reasonable mode of acceptance when invited by the offer. The offeror may treat the offer as lapsed if not notified within a reasonable time.
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A designated trustee accepts by substantially complying with a method provided in the trust terms. When the method is not expressly exclusive, conduct such as exercising trustee powers also indicates acceptance.
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A different reasonable method is permitted when the offer merely suggests rather than requires a particular manner of acceptance.
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