Chapter 25 - IT Contract Formation

25.3.3 Notice of acceptance by performance

When an offer invites acceptance by performance, the supplier is not required to provide notice to accept the offer, unless the supplier so specifies. Agencies should not communicate or agree to acceptance by performance, but should always have a written contract document or purchase order which memorializes the terms of the transaction. In transactions for the sale of goods, where commencement of performance may be used to communicate acceptance, if the supplier is not notified of acceptance within a reasonable time, it may treat the offer as having lapsed prior to acceptance. However, if an agency has reason to know that the supplier does not have means of learning that performance has begun, the supplier's contractual duty will be discharged unless:

• The agency exercises reasonable diligence to notify the supplier of acceptance;
• The supplier learns of the performance within a reasonable time; or
• The offer indicates that notification of the acceptance is not necessary.