Sujith
 Prescribed manner of acceptance
 The acceptance must be communicated in the
prescribed manner.
 Mode prescribed:



...
 Effect of deviation from the prescribed manner:
 Does not result in the valid communication of
acceptance.
 Particular...
 When acceptance communicated in different manner

reaches before the manner prescribed would have
reached:
 Three persp...
 The Autonomist perspective
 the proposer’s autonomy is given importance.
 This perspective does not tolerate any devia...
 Rationalist Perspective
 Mere mention of manner of communication can not
ipso facto be regarded as prescription.
 Conc...
 Subjectivist perspective
 The proposer reserves the discretion to validate or
invalidate the acceptance.
 Indian posit...
 Thus a departure from the prescribed manner itself

will not invalidate the acceptance.
 The Indian law cast a duty upo...
 The risk of deviation is on the proposer as per the

Indian law
 It does not permit him to declare that the acceptance ...
 Thus the subjectivity perspective is not applied in

totality in Indian law.
 It leaves the discretion to the proposer ...
When the communication is
complete
 Theories as to the point of time when the

communication is said to be complete:
 De...
 Declaration theory
 Contract comes into existence the moment the offeree
declares that he accepts the offer.
 Whether ...
 Reception theory
 Contract is complete the moment the acceptance is
received by the offeror.
 Whether he has read it o...
 Information theory
 A contract is complete only when the acceptance comes
to the actual knowledge of the offeror.
 Ind...
 As against offeror- Sec. 4 – Expedition theory
 As against offeree- Sec.4 - Information theory
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Acceptance ii

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Acceptance ii

  1. 1. Sujith
  2. 2.  Prescribed manner of acceptance  The acceptance must be communicated in the prescribed manner.  Mode prescribed:   Must be Lawful Should not be silence on the part of the offeree.
  3. 3.  Effect of deviation from the prescribed manner:  Does not result in the valid communication of acceptance.  Particularly, when it does not reach before the manner prescribed would have normally reached.
  4. 4.  When acceptance communicated in different manner reaches before the manner prescribed would have reached:  Three perspectives    The autonomist perspective The rationalist perspective The subjectivist perspective
  5. 5.  The Autonomist perspective  the proposer’s autonomy is given importance.  This perspective does not tolerate any deviation from the prescribed mode of communication.  Criticism  “repugnant to common sense” Rigid and dogmatic.
  6. 6.  Rationalist Perspective  Mere mention of manner of communication can not ipso facto be regarded as prescription.  Concerns with the impact of the deviation rather than the deviation itself.  It makes an objective inquiry into whether, due to deviation, the proposer was put in any disadvantageous position or not?  If not, the deviation will not upset the acceptance.
  7. 7.  Subjectivist perspective  The proposer reserves the discretion to validate or invalidate the acceptance.  Indian position  Sec 7 (2)- “If The proposal prescribes the manner in which it is to be accepted, and the acceptance is not made in such a manner, the proposer may, within reasonable time after the acceptance is communicated to him, insist that his proposal shall be accepted in the prescribed manner, and not otherwise, but if he fails to do so, he accepts the acceptance.”
  8. 8.  Thus a departure from the prescribed manner itself will not invalidate the acceptance.  The Indian law cast a duty upon the proposer to reject such acceptance and insist on fresh acceptance in the prescribed manner.  If he fails to do so , he will be deemed to have waived his demand and becomes bound by such acceptance.
  9. 9.  The risk of deviation is on the proposer as per the Indian law  It does not permit him to declare that the acceptance is invalid due to deviation.  The acceptance will be valid also if he fails to respond with in a reasonable time after receiving the deviated acceptance.
  10. 10.  Thus the subjectivity perspective is not applied in totality in Indian law.  It leaves the discretion to the proposer but a failure on his part to exercise it makes him bound by the acceptance.  It gives room for foul play.  Acceptor can get more time  Proposer can revoke the proposal before acceptance.
  11. 11. When the communication is complete  Theories as to the point of time when the communication is said to be complete:  Declaration theory  Expedition theory  Reception theory  Information theory
  12. 12.  Declaration theory  Contract comes into existence the moment the offeree declares that he accepts the offer.  Whether it has come to the notice of the offeror or not, is immaterial.  Expedition theory  Contract is complete the moment the offeree does the action necessary to communicate his acceptance.  Whether it has come to the notice of the offeror or not, is immaterial.
  13. 13.  Reception theory  Contract is complete the moment the acceptance is received by the offeror.  Whether he has read it or not is immaterial.  This theory takes into consideration the possibility of loss in transit.
  14. 14.  Information theory  A contract is complete only when the acceptance comes to the actual knowledge of the offeror.  Indian law  Section 4: The communication of an acceptance is complete -as against the proposer, when it is put in a course of transmission to him so as to be out of the power of the acceptor; as against the acceptor, when it comes to the knowledge of the proposer.
  15. 15.  As against offeror- Sec. 4 – Expedition theory  As against offeree- Sec.4 - Information theory

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