Question 1

When does an offer become a contract?

Accepted Answer

When the other party accepts it unconditionally. Acceptance must match the offer's terms exactly (the 'mirror image rule'). Any modification to the terms is a counteroffer, not an acceptance. Under the UCC (for goods), the rules are slightly more flexible — minor additions in acceptance don't necessarily kill the deal.

Question 2

Can an offer be revoked after it's made?

Accepted Answer

Yes, at any time before acceptance — unless it's an option contract (where the offeror is paid to keep the offer open) or the offeree has relied on it to their detriment (promissory estoppel). Once the other party accepts, it's too late to revoke.

Question 3

Does silence count as acceptance?

Accepted Answer

Almost never. You can't impose a contract on someone by saying 'if I don't hear from you by Friday, we have a deal.' The one exception: if prior dealings between the parties established that silence is how they do business, courts may find acceptance. But this is rare.

Question 4

Is a price quote the same as an offer?

Accepted Answer

Usually no. A price quote is an invitation to negotiate, not a binding offer. An offer needs specific terms and an intent to be bound. 'Our rate is $150/hour' is a quote. 'We'll redesign your website for $5,000, payable in two installments, work starting March 1' is an offer.

Question 5

What happens if acceptance arrives late?

Accepted Answer

A late acceptance is typically treated as a counteroffer that the original offeror can accept or reject. Under the 'mailbox rule,' acceptance is effective when sent (not received) — but this only applies when using the method of communication the offeror authorized or reasonably expected.

Offer and Acceptance

Definition

In Practice

Common in these contract types

Related terms

Frequently asked questions about offer and acceptance

Create a contract with proper offer and acceptance clauses