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CMA Foundation · Fundamentals of Business Laws and Business Communication · Essential Elements of a Contract, Offer and Acceptance

Under the Act, performance of the conditions of a proposal, or acceptance of consideration for a reciprocal promise offered with the proposal, amounts to:

Performing the conditions of a proposal, or accepting consideration for a reciprocal promise offered with it, is treated as acceptance of the proposal. The offeree is doing what the proposer required, so no separate words of acceptance are needed.

  1. AAcceptance of the proposalCorrect
  2. BRevocation of the proposal
  3. CA counter-proposal
  4. DOnly an invitation to treat

Explanation

Section 8 provides that performing the conditions of a proposal, or accepting consideration for a reciprocal promise offered with it, is an acceptance. It is neither a revocation nor a counter-proposal, because the offeree is carrying out what the proposer asked.

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