Section 2(b) states that
A proposal when the person
to whom the proposal is
made signifies his assent thereto the proposal
is said to be accepted.
An accepted proposal is called a promise or an
Acceptance may be express or
words spoken or written
accepted by conduct
A lady invited her niece to stay with her in the
same house and promised to settle on her
The niece stayed with her residence till the
time of her death. Niece was held to be
entitled to property because she has accepted
the offer of the aunt by conduct i.e., by going
to her house and staying with her as desired.
(V. Rao v/s A. Rao)
An offer may be accepted by the person to
whom it is made.
General offer- only the persons with the
knowledge /notice of the offer can come
forward and accept the offer.
Acceptance must be absolute
and unqualified/ unconditional
Acceptance must be
communicated to the offeror
3. Acceptance may be made
within reasonable time
Acceptance must be according to the mode
The acceptor must be aware of the Proposal
at the time of offer
Acceptance must be given before the offer
lapses or before the offer is revoked
Acceptance can’t be implied from silence
Acceptance of a proposal may sometimes be
inferred from silence or inaction.
As a rule silence does not imply acceptance, but in
the following cases silence may be indicative of
assent to the proposal
Where the offeree having reasonable
opportunity to reject the offered goods or
services takes the benefit of them, it will amount
Case Kashi Prasad vs. Sajjadi Begum- Enhancement
of rent not protested and tenants continued
living after notice was served by the landlord
Subject to contract or subject to approval by
certain persons such as solicitors etc.
No contract will arise till a formal contract is
settled or consent of such person obtained.
When the contracting parties are face to face
and negotiate in person, a contract comes in
existence the movement the offeree gives his
absolute and unqualified acceptance to the
proposal made by the offeror. When the
parties are at the distance and the offer and
the acceptance and their revocation are made
through post, i.e., by letter or telegram.
When parties are at a distance and the offer
and acceptance are exchanged through
post, rules contained in sec.4 & 5 apply
The communication of offer is complete when
is comes to the knowledge of the person to
whom is made/ offeree.
E.g., A Proposes, by a letter, to sell a house to
B at a certain price. The letter is posted 10th
July. It reaches B on 12th July. The
communication of the offer is complete when
B receives the letter, i.e., on 12th July.
As against the proposer-when it is put into 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
E.g., in the above case, when B accepts A’s
Proposal, by a letter sent by post on 13th instant.
The letter reaches on 15th instant. The
communication of acceptance is complete, as
against A, when the letter is posted, i.e., on
13th, as against B, when the letter is received by
A, i.e., on 15th. (Case of NT Rama Rao)
As against the proposer
• Communication is complete as soon as a
duly addressed letter of acceptance is put
into the course of transmission.
• Whether the same reaches the proposer
As against the acceptor
• Communication is complete only when
the proposer has received the letter and
learnt the contents thereof.