Also known as: manners of acceptance · mode of acceptance
Written by attorneys — see sources below.
An authorized method by which an offeree exercises the power of acceptance created by an offer. The offeror may prescribe a required manner that must be followed to form a contract or may merely suggest a permitted manner that does not preclude other reasonable methods.
Matrix Technologies emailed Mercury Industries a quote for custom parts and required acceptance only by submitting an order through its online portal. Mercury attempted repeated submissions while the portal malfunctioned. Once the portal was repaired, Mercury completed the submission before any revocation. The prescribed manner controlled, so Mercury retained the power to accept by using the designated method.
Marathon Logistics offered Magnolia Foods a contract for prompt shipment of goods and invited acceptance by beginning performance. Magnolia started production but failed to notify Marathon within a reasonable time. Marathon treated the offer as lapsed. The absence of timely notice allowed Marathon to regard the offer as expired before acceptance occurred.
An offer that expressly prescribes the place, time, or manner of acceptance requires compliance with those terms to create a contract. A mere suggestion of a permitted manner does not preclude other reasonable methods.
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Where beginning performance is a reasonable mode of acceptance, the offeror who receives no notice within a reasonable time may treat the offer as having lapsed.
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An offer that lists alternative methods of acceptance does not necessarily preclude other reasonable methods unless the language or circumstances indicate that the listed methods are exclusive.
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A prior course of dealing may support a finding that the offer did not require the stated method exclusively when the circumstances show the parties continued to treat another method as reasonable.
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