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ACCA Applied Skills · Corporate and Business Law (Global) · Introduction to the UN Convention on Contracts for the International Sale of Goods and ICC Incoterms

Isidore Ltd offers to sell goods to Jarvis Co. Jarvis does not reply but, in accordance with practices the parties have established between themselves, ships payment in advance to Isidore and Isidore accepts it without objection. Both states apply the CISG. Which statement is correct?

Jarvis's conduct can amount to acceptance. The CISG allows assent to be shown by an act, such as payment, where the offer or established practices between the parties permit it. Silence alone is not acceptance, and no signed writing is needed.

  1. AJarvis's conduct can amount to acceptance because the CISG allows assent to be shown by an act, in line with established practicesCorrect
  2. BSilence or inactivity is never relevant, so no contract can arise from any conduct
  3. CAcceptance is only valid if it is in writing and signed

Explanation

Under the CISG, an offeree may indicate assent by a statement or other conduct, and acceptance by performing an act, such as dispatch of goods or payment, is effective where the offer or established practices between the parties allow it, without notice to the offeror. Silence alone is not acceptance, but here there is conduct. No writing is required.

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