The document defines acceptance under Indian contract law and lists the essentials of a valid acceptance. It states that acceptance must be absolute and unconditional, communicated to the offeror, given by the party to whom the offer was made, within a reasonable or prescribed time, in the prescribed manner, before the offer is revoked or lapsed, with the acceptor aware of the offer. Mere silence is not generally considered acceptance unless agreed or customary. An offer can end through revocation, lapse of time, failure to meet conditions, death or insanity of the offeror, counteroffer, rejection, or changes in law.

1. ACCEPTANCE

2. DEFINITION OF ACCEPTANCE
Section 2(b) of the Contract Act defines
acceptance as “When the person to whom the
proposal is made signifies his assent there to, the
proposal is said to be accepted ”

3. ESSENTIALS OF VALID ACCEPTANCE
1. Acceptance must be absolute &
unconditional.
2. Acceptance must be communicated to the
offeror / proposor.
3. Acceptance must be given by the party to
whom the offer is made.

4. 4. Acceptance must be made within a reasonable time
or prescribed time.
5. Acceptance must be in prescribed manner or
mode.
6. Acceptance must be given before the offer is
finished/revoked.

5. 7. Acceptance can not be implied from silence
8. Acceptor must be aware of the offer/proposal at
the time of the acceptance.
9. It must show an intention on the part of the
acceptor to fulfill the terms of the promise.
10. it cannot precede an offer.

6. MERE SILENCE IS NOT ACCEPTANCE OF
THE OFFER
Example: A offers to B to buy his house for Rs.5
lakhs and writes “If I hear no more about it within a
week, I shall presume the house is mine for Rs.5
lakhs.” B does not respond. Here, no contract is
concluded between A and B.

7. EXCEPTIONS
Following are the two exceptions to the above
rule. It means silence amounts to acceptance of
offer.
a) Where offeree agrees that non – refusal by him
within specified time shall amount to acceptance
of offer.
b) When there is custom or usage of trade which
specified that silence shall amount to acceptance.

8. WHEN IS COMMUNICATION
COMPLETE u/s 4
1. COMMUNICATION OF OFFER u/s 4(1): The
communication of an offer is complete when it
comes to the knowledge of the person to whom it
is made.

9. 2. COMMUNICATION OF ACCEPTANCE u/s 4(2):
The communication of an acceptance is complete–
i) As against the proposer : when it is put into a
course of transmission to him, so as to be out of
the power of the acceptor.
ii) As against the acceptor: when it comes to the
knowledge of the proposer.

10. 3. COMMUNICATION OF REVOCATION u/s 4(3):
The communication of a revocation is complete–
i) As against the person who makes it: when it
is put into a course of transmission to the person
to whom it is made him.
ii) As against the person to whom it is made:
when it comes to his knowledge.

11. TIME FOR REVOCATION u/s 5
1. TIME FOR REVOCATION OF OFFER u/s 5(1):
May be revoked at any time before the
communication of its acceptance is complete as
against the proposer.

12. 2. TIME FOR REVOCATION OF ACCEPTANCE
u/s 5(2): May be revoked at any time before the
communication of its acceptance is complete as
against the acceptor.

13. WHEN DOES AN OFFER COME TO
AN END
An offer may come to an end by:
i. REVOCATION OR
ii. LAPSE OR
iii. REJECTION.

14. MODES OF REVOCATION/LAPSE OF
AN OFFER u/s 6
1. By notice of revocation. u/s 6(1)
2. By lapse of time. u/s 6(2)
3. By non-fulfillment of condition. u/s 6(3)
4. By death or insanity of offeror or offeree.
u/s 6(4)
5. By counter Offer.

15. 6. By the non-acceptance of the offer
according to the prescribed mode or
manner u/s 7(2)
7. Law is changed
8. Rejection of offer

16. LAPSE & REVOCATION OF AN
OFFER
An offer should be accepted before it lapses (i.e. comes
to an end). An offer may come to an end in any of the following
ways stated in Section 6 of the Indian Contract Act:
1. By communication of notice of revocation
u/s 6(1) : An offer may come to an end by
communication of notice of revocation by the offeror. It may be
noted that an offer can be revoked only before its acceptance
is complete for the offeror.

17. 2. By lapse of time u/s 6(2) :Where time is fixed
for the acceptance of the offer, and it is not
acceptance within the fixed time, the offer
comes to an end automatically on the expiry of
fixed time.

18. 3. By failure to accept condition precedent to
acceptance u/s 6(3): Where, the offer
requires that some condition must, be fulfilled
before the acceptance of the offer, the offer
lapses, if it is accepted without fulfilling the
condition.

19. 4. By The Death Or Insanity Of The Offeror u/s
6(4):Where, the offeror dies or becomes, insane,
the offer comes to an end if the fact of his death or
insanity comes to the knowledge of the acceptor
before he makes his acceptance.

20. 5. By Counter – Offer By The Offeree:
Where, a counter – offer is made by the offeree,
and then the original offer automatically comes
to an end, as the counter – offer amounts to
rejections of the original offer.

21. 6. BY NOT ACCEPTING THE OFFER,
ACCORDING TO THE PRESCRIBED OR
USUAL MODE U/S 7(2): Where some manner of
acceptance is prescribed in the offer, the offeror
can revoke the offer if it is not accepted according
to the prescribed manner.

22. 7. By Change In Law: Sometimes, there is a
change in law which makes the offer illegal.

23. 8. By rejection of offer by the offeree: Where, the
offeree rejects the offer, the offer comes to an end.
Once the offeree rejects the offer, he cannot
revive the offer by subsequently attempting to
accept it. The rejection of offer may be:
i) Express Or
Ii) Implied.