Accepting an offer

The employer makes an offer, which the employee accepts. But is it as simple as that? Are there any specific requirements for accepting an offer? There are four such requirements.

Firstly, an acceptance of an offer must be clear, unequivocal and unambiguous. In other words, the intention to accept the offer should be clear and not require any interpretation. It should also not introduce any conditions. For example, the offeree may not say "I accept the offer if you increase my remuneration". In that case the acceptance would be invalid.

Secondly, the acceptance must correspond with the offer. If an employer offers "a job as an accountant at a salary of Rx", the offeree may not accept as follows: "I accept the job of a senior accountant at a salary of Rx plus benefits". Modifying the offer invalidates it and the subsequent acceptance.

Thirdly, the offeree must accept the offer in the mode or form prescribed by the offeror. So if an employer indicates that an offer "must be accepted in writing by means of signature on a specified space in the offer letter" then that is exactly what should happen. Any other way of accepting will be invalid. But if the employer does not specify the mode of acceptance, any form of acceptance will be valid. In Jafta v Ezemvelo KZN Wildlife [2008] JOL 22096 (LC) the court held that an acceptance of an offer by short message service (SMS) was valid.

Fourthly, the acceptance must be communicated to the offeror. The offeror needs to know that its offer has been accepted. The communication should also be made within any prescribed time for acceptance. If the communication does not reach the offeror within the stipulated time, the offer will lapse and the purported acceptance will be invalid.

Where all four requirements are present, an acceptance will be valid and a contract will come into effect. In the Ezemvelo KZN Wildlife case the court found that the SMS sent by Jafta satisfied all the requirements for a valid acceptance and ruled that a contract between the parties was therefore concluded.

Once a contract is concluded, there are legal consequences that flow from it. If the employer terminates the contract without following the correct procedures and without having a valid reason, the employee may sue for compensation or damages. 

Lesson: When making an offer, always specify how and when it should be accepted.

Information provided by Kaizer Moyane,  Chief Consultant: Labour Relations, Sanlam