Which statement best describes the general rule about when acceptance must be communicated?

Which statement best describes the general rule about when acceptance must be communicated?

• A. It must be communicated to the offeror, unless an option contract exists or silence is permitted
• B. Acceptance is always effective upon dispatch
• C. Acceptance by performance is never valid
• D. Acceptance is only effective if in writing

Answer: (A)

Acceptance must be communicated to the offeror for a contract to form, because the offeror needs to know that the offeree agrees to be bound. That communication ensures there’s a meeting of the minds and allows the offeror to respond or prepare to perform. Two common exceptions often tested are: when an option contract exists, the offeror has promised to keep the offer open for a set period in exchange for consideration, so acceptance can occur under the option’s terms without requiring additional notice beyond what the option requires; and when silence is permitted, meaning the offeror has allowed or suggested that silence will count as acceptance in the right circumstances (for example, through prior dealings or a stated condition). In typical situations not falling into these exceptions—such as a straightforward contract where silence isn’t acceptance and performance isn’t the act of acceptance—the rule that acceptance must be communicated holds true.

Acceptance must be communicated to the offeror for a contract to form, because the offeror needs to know that the offeree agrees to be bound. That communication ensures there’s a meeting of the minds and allows the offeror to respond or prepare to perform. Two common exceptions often tested are: when an option contract exists, the offeror has promised to keep the offer open for a set period in exchange for consideration, so acceptance can occur under the option’s terms without requiring additional notice beyond what the option requires; and when silence is permitted, meaning the offeror has allowed or suggested that silence will count as acceptance in the right circumstances (for example, through prior dealings or a stated condition). In typical situations not falling into these exceptions—such as a straightforward contract where silence isn’t acceptance and performance isn’t the act of acceptance—the rule that acceptance must be communicated holds true.