Acceptance by Performance CASES
In English law, acceptance by performance refers to accepting an offer by carrying out the specific action requested, rather than through words or written confirmation.
Definition and Principles
Acceptance by performance occurs primarily in unilateral contracts, where the offer expressly or implicitly indicates that acceptance can only occur through completing the requested act. No formal or verbal acceptance is required.
Common Examples
- Reward offers, such as payment for returning lost property.
- Offers that request specific actions, like completing tasks or work.
- Competitions where performing a task constitutes acceptance.
Legal Implications
- The offeror becomes obligated only after performance is completed.
- No acceptance or obligation arises from mere preparation or partial performance.
Practical Importance
Understanding acceptance by performance clarifies obligations in unilateral agreements, ensuring parties know precisely when contractual duties arise and liabilities attach.
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A property seller offered to exchange contracts if the buyer attended with a signed contract and deposit cheque. The buyer complied, but the seller refused to proceed. The court held a binding unilateral contract existed, which the seller breached by revoking their offer. Facts The plaintiffs, Dahlia Ltd, negotiated to purchase properties from the first defendants, Four Millbank Nominees Ltd. The essential terms were agreed. The defendants’ solicitors wrote to the plaintiffs’ solicitors stating they were instructed to proceed. Crucially, the defendants’ representative orally informed the plaintiffs that if they attended the defendants’ office with a counterpart contract signed by
