Key Case | Jones v Daniel (1894) | Formation of Contract - Counter-offer

Where an offeree seeks to accept an offer, but when doing so simultaneously adds additional terms, this is not acceptance but rather a counter-offer, whereby no acceptance takes place, and no contract is formed.

CASE SUMMARY

Claimant: Jones

Defendant: Daniel

Facts: The defendant offered to sell his property to the claimant. The claimant wrote a letter accepting the offer, but in this letter included additional terms that had not been included in the original offer.

Outcome: Not liable – no contract had been formed

Legal principle: As the letter purporting to accept the offer contained additional terms it was not an acceptance, and no contract was formed.