Agreements are generally established in such a way that the company operating the online auction site only presents sellers to potential buyers. Would a reasonable person to whom the offer was made reasonably understand that the supplier submitted a proposal to which the supplier wished to be bound in the event of clear acceptance? “The acceptance of Newton`s mechanics has been undisputed for 200 years” “ripped jeans have not been accepted by the Country Club” Offer and acceptance analysis is a traditional approach to contract law. The formula of offer and acceptance, developed in the 19th century, identifies a moment of education when the parties agree. This classic approach to contract formation has been modified by developments in the Estoppel Act, misleading behaviour, misrepresentation, unfair enrichment and the power of acceptance. The organization of a public auction is generally considered an invitation to treatment. However, auctions are usually a special case. The rule is that the bidder makes an offer to purchase and the auctioneer accepts it in any way, usually the hammer.   A bidder may withdraw its bid at any time prior to the hammer`s fall, but each bid is extinguished in all cases as an offer for the bid for a higher bid, so that in the event of a higher bid withdrawn before the hammer falls, the bid cannot claim to accept the previous maximum bid. If an auction is unqualified, there is no sales contract between the owner of the merchandise and the highest bidder (since the placement of the merchandise in the auction is an invitation to process), but there is a guarantee contract between the investigator and the highest bidder that the auction proceeds without reservation (i.e. the highest bid , no matter how low, be accepted).  The Single U.S. Code of Commerce states that products can no longer be withdrawn at an unqualified auction once they have been established.  Whether the two parties agreed on the terms or whether a valid offer was made is a question determined by the applicable law.
In some jurisdictions, courts use criteria known as “objective testing,” which was explained in the main English case Smith v. Hughes.   In Smith v. Hughes, the court pointed out that, when it comes to a valid offer, it is not the party`s own (subjective) intentions, but how a reasonable person would understand the situation. The objective test has been largely replaced in the United Kingdom since the introduction of the Brussels regime, in conjunction with the Rome I regulation. There are several rules relating to the disclosure of acceptance: under English law, butler Machine Machine Co Ltd v. Ex-Cell-O Corporation (England) Ltd, raised the question of which standard form contracts were predominant at the time of the transaction. Lord Denning MR preferred the view that documents should be considered as a whole and the important factor is to find the decisive document; On the other hand, Lawton and Bridge LJJ preferred a traditional analysis of acceptance of the offer and found that the last counter-offer prior to the start of the presentation nulled all previous offers.