This section is from the book "The Law Of Contracts", by William Herbert Page. Also available from Amazon: Commercial Contracts: A Practical Guide to Deals, Contracts, Agreements and Promises.
Until acceptance the offer is not an agreement between the parties.1
California. Dunne v. Dunne, 66 Cal. 157, 4 Ac. 441, 1152.
Connecticut. Bishop v. Howarth, 50 Conn. 455, 22 Atl. 432.
Indiana. Watt .v. Pittman, 125 Ind. 168, 25 N. E. 191.
Iowa. Mohn v. Mohn, 148 la. 288, 126 N. W. 1127; Ober v. Seegmiller, 180 la. 462, 160 N. W. 21.
Missouri. Byrne v. Byrne, 250 Mo. 632, 157 S. W. 609.
New York. Gilbert v. Taylor, 148 N. Y. 298, 42 X. E. 713.
Ohio. Puller v. McEwen, 17 O. S. 288; Case v. Hall, 52 O. S. 24, 25 L. R. A. 766, 38 N. E. 618.
Pennsylvania. Walter's Estate, 197 Pa. St. 555, 47 Atl. 862.
West Virginia, Miller v. Lake, 24 W. Va. 545.
1 Sutherland v. Parkins, 75 111. 338.
2 In re Adams, L. R. 27 Ch. Div. 394; Gustin v. Union School District, 94 Mich. 502, 34 Am. St. Rep. 361, 54 N. W. 156; McCormick v. Stephany, 57 N. J. Eq. 257, 41 Atl. 840.
3 Newton v. Newton, 11 R. I. 390, 23 Am. Rep. 476.
1 England. Demerara Turf Club v. Wight, A. C. (1918) 605.
Alabama. Borst v. Simpson, 90 Ala. 373, 7 So. 814; Montgomery v. Enslen, 126 Ala. 654, 28 So. 626; McGowjn Lumber & Export Co. v. R. J. & B. F. Camp Lumber Co., 192 Ala. 35, 68 So. 263.
Arkansas. Cage v. Black, 97 Ark. 613, 134 S. W. 942.
District of Columbia. Metzler v. Harry Kaufman Co., 32 D. C. App. 434.
Florida. Ocala Cooperage Co. v. Florida Cooperage Co., 59 Fla. 390, 52 So. 13.
Georgia. Hugging v. Southeastern Lime & Cement Co., 121 6a. 311, 48 S. E. 933; Central, of Georgia, Ry. Co. v. Gortatowsky, 123 Ga. 366, 51 S. E. 469; Robson v. Weil, 142 Ga. 429, 83 S. E. 207.
Illinois. People, ex rel., v. Chicago, 278 111. 318, L. R. A. 1917E, 1069, 116 N. E. 158.
An unaccepted offer has no legal effect for two reasons: acceptance is necessary to form an agreement, and without acceptance no consideration exists.2 If A offers to convey certain property to B if B, in return, will agree to do certain things, no rights either in such property or against A personally can come into existence until B accepts such offer.3 So an order for goods is of no legal effect
Iowa. McCormick, etc., Co. v. Richardson, 89 la. 525, 56 N. W. 682; Breen v. Mayne, 141 la. 399, 118 N. W. 441; Foshier v. Fetzer, 154 la. 147, 134 N. W. 556; Petroleum Products Distributing Co. v. Alton Tank Line, 165 la. 398, 146 N. W. 52; Hankins v. Young, 174 la. 383, 156 N. W. 380.
Kansas. Burkhalter v. Jones, 32 Kan. 5, 3 Ac. 559.
Kentucky. Kernan v. Carter (Ky.), 104 S. W. 308, 31 Ky. Law Rep. 865; American Seeding Machine Co. v. Commonwealth, l52 Ky. 589, 153 S. W. 972; Citizens' Nat. Life Ins. Co. v. Murphy, 154 Ky. 88, 156 S. W. 1069; Cincinnati Equipment Co. v. Big Muddy River Consolidated Coal Co., 158 Ky. 247, 164 S. W. 794.
Louisiana. Kaplan v. Whitworth, 116 La. 337, 40 So. 723.
Maine. Carleton v. Ins. Co., 109 Me. 79, 82 Atl. 649.
Massachusetts. Sears v. Ry., 152 Mass. 151, 9 L. R. A. 117, 25 N. E. 98; Brighton Packing Co. v. Butchers' Slaughtering & Melting Association, 211 Mass. 398, 97 N. E. 780.
Michigan. Franck v. McGilvray, 144 Mich. 318, 107 N. W. 886; Tyng v. Converse, 180 Mich. 195, 146 N. W. 629.
Mississippi. Dahnke-Walker Milling Co. v. Phillips, 117 Miss. 204, 78 So. 6; Couret v. Conner, - Miss. - , 79 So. 230.
Minnesota. Hanson v. Kelson, 82 Minn. 220, 84 N. W. 742; Storch v. Duhme, 76 Minn. 521, 79 N. W. 533.
Missouri. Denton v. Mclnnis, 85 Mo. App. 542.
Nebraska. Sennett v. Melville, 76 Neb. 690, 107 N. W. 991.
New York. Benedict v. Pincus, 191 N. Y. 377, 84 N. E. 284.
North Carolina. Durham Life Insurance Co. v. Moize, 175 N. Car. 344, 95 S. E. 552.
North Dakota. Reeves v. Bruening, 13 N. D. 157, 100 N. W. 241; Shell-burg v. Wilton Bank, - N. D. - , 167 N. W. 721.
Oregon. Lemler v. Bord, 80 Or. 224, 156 Ac. 427, 1034.
Pennsylvania. Henry v. Black, 213 Pa. St. 620, 63 Atl. 250.
Tennessee. Condon v. Callahan, 115 Tenn. 285, 1 L. R. A. (N.S.) 643, 89 S. W. 400.
Texas. Ft. Worth, etc., Ry. v. Lindsey, 11 Tex. Civ. App. 244, 32 S. W. 714.
West Virginia. Smith' v. Atlas Pocahontas Coal Co., 66 W. Va. 599, 66 S. E. 746.
Wisconsin. Beck, etc., Co. v. Cereal Mills, 109 Wis. 65, 85 N. W. 127.
Wyoming. Frank v. Stratford-Hand-cock, 13 Wyom. 37, 110 Am. St. Rep. 963, 67 L. R. A. 571, 77 Ac. 134.
2 See Sec. 566 et seq.
3 Colorado. Davis v. Thomas, 28 Colo. 303, 64 Ac. 187.
Illinois. Bostwick v. Hess, 80 111. 138.
Kentucky. Stembridge v. Stembridge, 87 Ky. 91, 7 S. W. 611.
Tennessee. Williams v. Reynolds (Tenn. Ch. App.), 64 S. W. 290.
West Virginia. Dyer v. Duffy, 39 W. Va. 148, 24 L. R A. 339, 19 S. E. 540; Watson v. Coast, 35 W. Va. 463, 14 S. E. 249; Barrett v. McAllister, 33 W. Va. 738, 11 S. E. 220; Weaver v. Burr. 31 W. Va. 736, 8 L. R. A. 94, 8 S. E. 743.
Offer and Acceptance $150 until accepted.4 The fact that an unaccepted offer purports to be a "contract," does not change its legal effect, or make it a binding obligation before acceptance.5 If B refuses to accept such order, no contract exists.6 If, by a trade custom, a contract of sale through a broker is not to take effect unless it is confirmed by both buyer and seller, no contract exists until such confirmation.7 An unaccepted offer to release a tax-title on payment of a specific amount creates no obligation.8 An offer of employment is not a contract until acceptance and new terms may be added in the meantime.9 If such offer is rejected, and work is then done under circumstances which give a right to reasonable compensation, such compensation may be recovered though it is in excess of the amount for which the party who performs such work had offered to do it.10 A written declaration of sale signed by the seller does not amount to a contract if it is not accepted by the purchaser.11 If A claims a certain amount as reasonable compensation for services rendered to B, and B claims that the amount of such compensation should be less than A's claim, no contract liquidating such claim exists, and A may subsequently claim a larger amount.12 A promise to pay a reward is an offer and not a contract before it is accepted by complying with its terms.13 A guaranty of the performance of a contract entered into by a third person is not an obligation binding upon the guarantor until it is accepted by the offeree.14
4 Arkansas. Bagnell Timber Co. v. Spann, 102 Ark. 621, 145 S. W. 546.
Georgia. Robson v. Weil, 142 Ga. 429, 83 S. E. 207.
Illinois. Gorbin v. Speeter, 02 111. App. 652.
Mississippi Dahnke-Walker Milling Co. v. Phillips, 117 Miss. 204, 78 So. 6.
North Dakota. J. L. Owens Co. v. Bemis, 22 N. D. 159, 133 N. W. 59.
5 Holmes v. Block, 196 Ala. 322, 71 So. 670; Nolan Milling Co. v. White Grocery Co., 168 Ky. 417, 182 S. W. 191; Deering v. Mortell, 21 S. D. 159, 16 L. R, A. (N.8.) 352, 110 N. W. 86.
6 Gold v. Cates Chair Co., 147 Ala. 629, 41 So. 675; Crowder v. Tolerton & Warfield Co., 92 Neb. 250, 138 N. W. 151; J. P. Bowlin Liquor Co. v. Beandoin, 15 N. D. 557, 108 N. W. 545.
7 Johnston v. Fairmont Mills, 129
Fed. 74, 63 C. C. A. 516 [affirming Johnston v. Fairmont Mills, 116 Fed. 537].
8 Osborne v. Waddell, 176 Ala. 232, 57 So. 698.
9 New terms may be added after the election of a teacher and before his acceptance: People, ex rel., v. Chicago, 278 111. 318, L. R. A. 1917E, 1069, 116 N. E. 158.
10 Condon v. Callahan, 115 Tenn. 285, 1 L. R. A. (N.S.) 643, 89 S. W. 400.
11 Timmons v. Boetwick, 141 Ga. 713, 82 S. E. 29.
12 Childs v. Littlefleld, 206 Mass. 113, 91 N. E. 1017.
13 Zwolanek v. Baker Mfg. Co., 150 Wis. 517, 137 N. W. 769. See Sec. 116 and 190 et seq.
14 Deering v. Mortell, 21 S. D. 159, 16 L. R. A. (N.S) 352, 110 N. W. 86.
An offer for insurance is without legal effect until acceptance.15 While an unaccepted offer does not create a contract, an insurance company has been held liable in tort for delay in accepting or rejecting applications which would, according to the information given to the applicant, have been acted upon favorably and within the time within which the loss actually happened.16 An action can not, under such circumstances, be brought on the contract of insurance.17 In some cases, the theory of estoppel has been suggested,18 but it has not been adopted as the ultimate basis of the rule.19
A counter-offer operates as a rejection, and has no other legal effect until it is accepted.20
 
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