Section 2 (b) of the contract Act defines ‘Acceptance’ as follows: “When the person to whom the offer is made signifies his assent thereto, the offer is said to be accepted.”

1. Acceptance
Legal Environment of Business

2. Prepared By
Manu Melwin Joy
Assistant Professor
Ilahia School of Management Studies
Kerala, India.
Phone – 9744551114
Mail – manu_melwinjoy@yahoo.com
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3. Definition
Section 2 (b) of the
contract Act defines
‘Acceptance’ as follows:
“When the person to
whom the offer is made
signifies his assent
thereto, the offer is said
to be accepted.”

4. Definition
• The offeree, when he
accepts the offer, is called
the acceptor.
• Acceptance can be made
by words, spoken or
written.
• An offer can be accepted
only by the person to
whom it is made.

5. Essentials of a valid acceptance
• Acceptance must be
absolute and unqualified.
– Example – A says to B, “ I
offer to sell my house for Rs.
2 Lakhs.” B replies “ I will
purchase it only for Rs 1
Lakh”. It is only a partial
acceptance.

6. Essentials of a valid acceptance
• Acceptance must be
communicated to the offeror.
• Acceptance must be made
within a reasonable time.
• Acceptance must be
communicated in some usual
and reasonable manner.
• Acceptance may be
expressed or implied.

7. Essentials of a valid acceptance
• Acceptance must be made by
the offeree.
• Acceptor must be aware of
the proposal at the time of
the offer.
• Acceptance must be made
only after the offer is made.’
• Acceptance must be given
before the offer lapses or is
revoked.
• Acceptance concludes the
contract.

8. • Definition of Acceptance.
• Essential elements of a valid Acceptance.