2. Meaning of Acceptance
• Acceptance means giving consent to the offer.
• It is an expression by the offeree of his willingness to be
bound by the terms of the offer.
• According to Section 2(b) e of the Indian Contract Act,
1872, “A proposal is said to be accepted when the person
to whom the proposal is made signifies his accent thereto.
A proposal when accepted becomes a promise.”
Example: X offer to sell his car for Rs.1,00,000. Y agrees to
buy the car for Rs.1,00,000. Y,s act is an acceptance of X,s
offer.
3. How to make acceptance
a) Express Acceptance: An express acceptance is one
which is made by words spoken or written.
a) Implied Acceptance: An implied acceptance is one
which is made otherwise than in words. In other words,
it is inferred from the conduct of the circumstances of
the particular case.
4. Essentials of Valid Acceptance
Conditions for a Valid
Acceptance
Absolute &
Unqualified
Mannerin
which
acceptanceto
begiven
Communication By
whom
To
whom
Time
limit
Before
lapse
of offer
5. Absolute & Unqualified
• According to Section 7(1) of the Indian Contract Act,
1872, “In order to covert a proposal into a promise, the
acceptance must be absolute and unqualified,” It means,
that an offer must be accepted as it is without any
reservation, variation or condition. A conditional and
qualified acceptance amounts to marking of a counter
offer which puts an end to the original offer and it cannot
be revived by subsequent acceptance.
6. Manner
• According to Section 7(2) of the Indian Contract Act,
1872, the acceptance of an offer must be given in the
prescribed manner.
• If the offer is not accepted in the prescribed manner, the
offerer may approve or reject such acceptance.
7. Communication
• The acceptance is complete only when it has been
communicated to the offerer. A mere mental
determination to accept is no acceptance in the eyes of the
law unless there is some external manifestation of that
determination by words or conduct.(Brogden v.
Metropolitian Railway co.).
8. By Whom
• Acceptance must be communicated by the offeree himself
or by the person who has the authority to accept. In other
words, if acceptance is communicated by an unauthorized
person, it will not give rise to legal relations.(Poell v.
Lee).
9. To Whom
• Acceptance must be communicated to the offerer himself.
In other words, if acceptance is communicated to an
unauthorized person, it will not give rise to legal relation.
(Felthouse v. Bindley).
10. Time limit
• The acceptance must be given within the prescribed (if
any) or within a reasonable time. What is reasonable time
depends upon the facts and circumstances of the case.
(Ramsgate Victoria Hotel Co. v. Montefiore).
11. Before lapse of offer
• The acceptance must be given before the offer lapses or is
withdrawn. In other words, if an acceptance is made after
the lapse or withdrawal of the offer, it will not give rise to
legal relations.