Acceptance of an offer By Ruby Sharma
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Acceptance of an offer By Ruby Sharma

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Acceptance of an offer By Ruby Sharma Presentation Transcript

  • 1. 1 Acceptance Ruby Sharma
  • 2.  When a person to whom offer is made signifies his assent ,it is an acceptance of the proposal. An accepted proposal is called agreement .  An application of shares in the company is offer and allotment of share is acceptance of offer resulting into contract.  Fall of hammer in case of auction sale is the common example of acceptance.  Express acceptance. When an acceptance is made by words spoken or written  Implied offer . If it is accepted by the conduct. Where a person boards a train or bus he impliedly accept to pay to the usual charges 2Ruby Sharma
  • 3. Who May Accept  An offer can be accepted by the person to whom it is made .Where offer is made by A to B ,the acceptance by C would be inoperative. Boulton V Jones(1857) D sent an offer to firm with whom he had accounts. P who had just taken over the said firm got a letter addressed to old firm ,accepted the offer and sent the goods . P sued for the price of the goods. The court held that there was no contract since the order was to the old firm and the acceptance by the new firm . 3Ruby Sharma
  • 4. Essential of valid acceptance Acceptance must be absolute and unconditional .An acceptance must be unconditional and unqualified .accepting an offer with condition and variation and reservation amounts to counter offer and rejection of the original offer . M offered to sell land to N at 280 pounds N replied accepting the offer and enclosing 30 pounds and promising to pay balance amount by monthly installments of 50 pound each. Since N accepted the offer subject to making payment in installment ,it was held that acceptance was conditional and qualified . 4Ruby Sharma
  • 5.  Acceptance must be communicated to the offeror-If the offeree is silent and give no acceptance to the offeror, no contract is formed.  Acceptance must be made within reasonable time: Acceptance to be valid must be within the time allowed by the offeror and if no time is specified ,it must be made within the reasonable time .Acceptance made after the offer has been withdrawn is invalid.  It must be according to the mode prescribed or usual or reasonable mode. Acceptance has to be made in the manner prescribed or indicated by the offeror. Section7(2)states that if the acceptance is not made in the manner prescribed ,the proposer may within the reasonable time after the acceptance is communicated to him insist that the acceptance must be made in the prescribed manner. 5Ruby Sharma
  • 6.  The acceptor must be aware of the proposal at the time of the offer. Acceptance follows offer. If the acceptor is not aware of the existence of the offer and conveys his acceptance ,no contract comes into existence .There must be knowledge of the offer before anyone could consent to it .An act done in ignorance of the offer of reward can not be called an acceptance .Case-Lalman shukla V.Gauri Dutt (1913)  Acceptance must be given before the offer lapse or before the offer is revoked .It means that acceptance must be made while the offer is in force that is before the offer has been revoked or offer has lapsed. Acceptance cannot be implied from silence. 6Ruby Sharma
  • 7. Effect of silence on acceptance. Mental acceptance is no acceptance Kashi Prasad V Sajjadi begum. A landlord served a notice on the tenant demanding enhancement of rent .The tenant did not protest against it and continue to occupy the premises .The conduct of tenant amount to acceptance of the offer to pay the rent at a higher rate. 7Ruby Sharma
  • 8. Communication of offer (Section 4)  The communication of an offer is complete when it comes to the knowledge of the person to whom the offer is made. In other words, when the offeree comes to know about the offer, the communication is said to be completed. Mr. Habib proposes by letter, to sell a house to Mr. Kumar for Rs.100000. The letter is posted on 6th August, 2003. The letter reaches Mr. Kumar on 8th instant. The communication of the offer is complete when Mr. Kumar, the offeree, receives the letter i.e., on 8th. 8Ruby Sharma
  • 9. Communication of an acceptance:  (Section-4) There are two rules regarding the completion of communication of an acceptance. As against the offeror: The communication of an acceptance is complete as against the proposer, when the acceptance is put in a course of transmission to him, so as to be out of power of the acceptor. For example, Mr. Habib offer by letter, to sell a house to Mr. Kumar for Rs. 100000. The letter is posted on 6th August. The letter reaches Mr. Kumar on 8th. If Mr. Kumar accepts the offer of Mr. Habib in the above case and sends a letter by post on 9th instant, the communication of the acceptance against Mr. Kumar is complete on 9th instant. As against the acceptor: The communication of an acceptance is complete as against the acceptor, when it comes to the knowledge of the offeror. As for instance, Mr. Habib offer by letter, to sell a house to Mr. Kumar for Rs. 1000.00. The letter is posted on 6th August, 2003. The letter reaches Mr. Kumar on 8th instant. If Mr. Kumar accepts the offer of Mr. Habib in the above case and sends a letter by post on 9th instant which reaches Mr. Habib on 10th instant, the communication of acceptance against Mr. Habib is completed on 10th instant. 9Ruby Sharma
  • 10. Revocation of offer and acceptance:  A person making an offer or accepting an offer already made to him retains the option to withdraw the said offer/acceptance. Such a withdrawal of offer/acceptance made by the offeror or acceptor is termed as ‘revocation’. But the Act imposes certain restrictions on the power of the offeror or acceptor to revoke their respective offer or acceptance. Revocation of an offer: Section 5 prescribes that a proposal may be revoked at any time before the communication of its acceptance is complete as against the offeror, but not afterwards. Revocation of an acceptance: An acceptance may be revoked at any time before the communication of the acceptance is complete as against the acceptor, but not afterwards. 10Ruby Sharma