Earlier in the week you discovered the first essential term needed to create a legally binding contract–a valid OFFER. Now let’s look at the second essential term–a valid ACCEPTANCE.
Acceptance comes from the party receiving the offer. An offer can be accepted in a number of ways, such as by agreeing—verbally or in writing—to do what the offeror has asked the offeree to do.
An offer can also be accepted by performing the action requested. Finally, a contract can be impliedly accepted, which means without peeping a word, your behavior can imply that you agree to the terms of an agreement.
An example is, suppose you purchase software. The instructions state that if you use the software, you are agreeing to the terms of the software manufacturer or retailer. So if you download the software, you have impliedly agreed to the terms. That’s why it’s so important to read those pesky little Terms of Use, BEFORE you click “I ACCEPT.”
An acceptance can also present a counteroffer and proposes a new one. If the counteroffer is accepted, this creates a new offer and invites a new acceptance.
Look for the 3rd essential term of a valid agreement in a few days. Until then,
Think Asset Protection!