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Does Acceptance of an Auto Insurance Release Need to be Exactly the Same as the Offer?

After a car accident, you may receive a settlement offer and a release form from the insurance company. Signing an auto insurance release means you agree to waive your right to pursue any further legal claims against the other party, so it’s important to understand the terms before you agree. But what if the terms of your acceptance don’t perfectly match the original offer? Does a slightly altered acceptance constitute a rejection, or can it still be considered valid?

Contract Law Basics & the Importance of Exact Acceptance

The legality surrounding settlement offers and releases stems from basic contract law. Generally, for a contract to be binding, there must be a clear offer, unconditional acceptance of the offer’s terms, and mutual exchange of something of value. In the context of a settlement offer, the insurance company’s offer includes the sum of money, and acceptance usually involves signing a release form.

Traditionally, any changes or modifications to a proposed offer are seen as a counteroffer rather than acceptance. A counteroffer essentially acts as a rejection of the original offer, necessitating a new agreement or further negotiations. Therefore, in theory, an acceptance of an auto insurance release should mirror the terms of the settlement offer to be considered valid.

Protecting Your Rights in Georgia

While the principle is clear, real-world situations often involve minor variations. Georgia courts analyze whether those changes are “material” (changing core terms) or “non-material” (such as minor clerical errors). Non-material changes might not derail an agreement. For instance, in the case of Yim v. Carr (2019), the Georgia Court of Appeals ruled that there was no binding settlement agreement because the acceptance did not match the specific release language required by the offer.

This underscores the importance of exact acceptance in Georgia. Treat an auto insurance settlement offer as a serious legal document. Before signing, have an experienced Blue Ridge, GA attorney review the release. They can advise whether any changes to the acceptance could jeopardize your settlement.

The Path Forward with the Law Office of Daniel R. Duello

The attorney at the Law Office of Daniel R. Duello has a deep understanding of contract law and are committed to safeguarding the rights of car accident victims in Blue Ridge, GA. Contact our auto accident lawyer today for a consultation to discuss your case and get the legal representation you deserve.