When a fire and other perils policy came up for renewal on 24 August 2018, the insurer and the insured’s broker exchanged emails regarding renewal terms and hold-covered arrangements. The Victoria Supreme Court in Australia found that cover had not been renewed nor extended because the insured had not unequivocally accepted the renewal terms nor
Offer and acceptance
Leaving a settlement offer open for acceptance
By Patrick Bracher (ZA) on
A South African law contract comes into being when an offer to contract is accepted by the other party. If the response does not accept the offer according to its specific terms but suggests changes, this is a counter-offer. The offer itself is considered rejected and lapses. This is South African law as well as…
A clear offer and unconditional acceptance is necessary to make a contract
By Patrick Bracher (ZA) on
Acceptance must correspond with the offer in all material respects.
When parties are negotiating a contract, an offer made by one party lapses if it is rejected by the other party. If the offeree makes a counteroffer, that amounts to a rejection of the original offer.
A binding contract can only be brought about by…