4statements which are made to invite people are called invitation to treat7. Any person (offeror)who is interested in such statements must make an offer to the inviter. The inviter must thanapprove of the offer so make in order to make a valid agreement amid the parties.8Now, once a valid offer is made by one person than the same must be approved by the offereewithout bringing any changes. Such approval in law is called an acceptance9. An acceptancemust reciprocate to the terms of the offer and if changes are brought while making an acceptancethen it is not a valid acceptance in law and is called counter offer10. A counter offer cancels theoriginal offer and must be treated as a new offer which when again accepted by the originalofferor results in acceptance in law.11However, in the leading case of Stevenson, Jacques and Co v McLean12, it was held that a quoteor request of information is no acceptance and thus neither be construed as a counter offer in law.Now, an offer and acceptance in law makes an agreement in law. When an acceptance is made then it must reach the knowledge of the offeror to make it bindingand effective. When the acceptance is made then the general rule is that it must reach theknowledge of the offeror to make it binding upon the parties13. But, in Adam v Lindsell14, it washeld that when an acceptance is made by post then the same is complete when the letter is postedand not when the letter comes in the knowledge of the offeror.15However, this postal rule is not applicable when an acceptance is made with the help of emails.In the leading case of Entores Ltd v Miles Far East Corporation16, it was held that if an7Partridge v Crittenden[1968].8Paul Latimer, Australian Business Law 2012 (CCH Australia Limited, 2012)9Airways Corp of New Zealand v GeyserlandAirways Ltd [1996].10Butler Machine ToolCo Ltdv Ex-Cell-O CorpLtd [1977].11Stephen Todd, J. F. Burrows, Jeremy Finn, Contract Law in New Zealand (Kluwer Law International, 2011).12Stevenson, Jacques and Co v McLean (1880).13Latec Finance Pty Ltd v Knight[1969].14Adam v Lindsell[1818].15SIMONE W B HILL, Email contracts –When is the contract formed?,[2001] JlLawInfoSci 4.16Entores Ltd v Miles Far East Corporation[1955].

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