Acceptance Or Counter Offer – Don't Suffer From Attachment Issues

This recent decision in Gibbs v Lakeside Developments Ltd [2016] EWHC 2203 (Ch), 12 July 2016 reiterates the age-old principle that an offer must be accepted in its entirety for acceptance to be legally binding. The judgement also brings to light some interesting practical points in the modern age of digital communication.

The substantive issue in Gibbs v Lakeside Developments was whether a communication by one side constituted genuine acceptance of an offer, or whether it was actually a counter-offer. Party A made an offer to settle a dispute to Party B, the terms of which were payment to Party A of the sum of £90,000 by a specified date. Party B responded with an email stating that Party A's offer was accepted and directed Party A to an attached draft consent order. The attached draft consent order specified a later payment date than the one which had formed part of Party A's original offer.