After completion of this lesson, students will be able to - a) define acceptance b) describe the basic rules of communication of acceptance

1. INTRODUCTION TO
ACCEPTANCE
Preeti Kana Sikder
Assistant Professor
Department of Law &
Justice
Jahangirnagar University

2. ACCEPTANCE
Section 2(b) of
contract act, 1872
When the person to
whom the proposal is
made signifies his
assent thereto, the
proposal is said to be
accepted.

3. An acceptance is an
unqualified expression of
assent to the terms proposed
by the offeror.

4. THE GENERAL RULE
• The general rule is that an acceptance has no effect
until it is communicated to the offeror
• One reason for this rule is the difficulty of proving an
un-communicated decision to accept
• The main reason for the rule is that it could cause
hardship to an offeror if he were bound without
knowing that his offer had been accepted.

5. BASIC RULES OF ACCEPTANCE
• There must be absolute and unqualified acceptance of all the
terms.
• The acceptance must be expressed in some usual or
reasonable manner unless the proposal prescribes the
manner in which it is to be accepted.
• Mental acceptance or uncommunicated assent does not
result in a contract.
• If the offeror prescribes a time, the acceptance must be
made within that time.

6. LET’S GUESS!
An oral
acceptance is
drowned out
by an
overflying
aircraft
Two people
make a
contract by
telephone,
and the line
goes ‘dead’
Acceptance is
made clearly
and audibly,
but the offeror
does not hear
what is said

7. ACCEPTANCE BY POST

8. WHEN DOES A POSTED ACCEPTANCE TAKE
EFFECT?
When it is
actually
communicated to
the offeror?
At the time when
it is posted?
When it reaches
him in the
ordinary course
of post?
At arrival at his
address

9. BASIC RULES OF ACCEPTANCE
• 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; and as against
the acceptor when it comes to the knowledge of the
proposer.
–A proposes, by letter, to sell a house to B at a certain price.
communication of the proposal is complete when B receives
the letter.
–B accepts A’s proposal by post. The communication of the
acceptance is complete, as against A, when the letter is
and as against B, when A receives the letter.

10. EXAMPLES OF COMMUNICATION OF
ACCEPTANCE
• Entores v Miles Far East Corporation (1955):
If an oral acceptance is drowned out by an
overflying aircraft, such that the offeror cannot
hear the acceptance, then there is no contract
unless the acceptor repeats his acceptance
once the aircraft has passed over.

11. COMMUNICATION OF ACCEPTANCE
1. Acceptance must be communicated
2. An exception exists in the case of unilateral
contracts. Offeror might dispense with the
requirement of communication of acceptance.
3. An offer can only be accepted by the offeree.
4. An offeree is not usually bound if another
person accepts the offer on his behalf without
his authorisation.

12. COMMUNICATION OF ACCEPTANCE
6. If the offer specifies a method of acceptance
(such as by post or fax) acceptance must be by
a method that is no less effective from the
offeror’s point of view than the method specified.
7. Silence can not be construed as acceptance.
8. Acceptance may be inferred from conduct.

13. MANCHESTER DIOCESAN COUNCIL FOR EDUCATION V
COMMERCIAL AND GENERAL INVESTMENTS LTD [1969]
• The claimant decided to sell some property by tender and inserted a
clause in the form of tender stating that the person whose bid was
accepted would be informed by means of a letter sent to the address
given in the tender.
• The defendant completed the form of tender and sent it to the
claimant. The claimant decided to accept the defendant’s tender and
sent a letter of acceptance to the defendant’s surveyor but not to the
address on the tender.
• It was held that communication to the address in the tender was
not the sole permitted means of communication of acceptance and
that therefore a valid contract had been concluded.

14. MANCHESTER DIOCESAN COUNCIL FOR EDUCATION V
COMMERCIAL AND GENERAL INVESTMENTS LTD [1969]
• The defendant was not disadvantaged in any way by notification
being given to its surveyor and, in any case, the stipulation had been
inserted by the claimant, not the defendant, and so it was open to the
claimant to waive strict compliance with the term, provided that the
defendant was not adversely affected thereby.

15. FELTHOUSE V BINDLEY (1862)
• The claimant and his nephew entered into negotiations for the sale of
nephew’s horse.
• The claimant stated that if he heard nothing further from his nephew
then he considered that the horse was his at a price of 30 pounds
and 15 cents.
• The nephew did not respond to this offer but he decided to accept it.
He had also told the defendant aunctioneer that the horse had
already been sold.
• However, the auctioneer mistakenly sold the horse.
• The claimant then sued the auctioneer.

16. ACCEPTANCE BY SILENCE
A C C E P TA N C E O F A N O F F E R W IL L N O T
B E IM P L IE D F R O M M E R E S IL E N C E O N
T H E PA R T O F T H E O F F E R E E

17. ACCEPTANCE IN
IGNORANCE OF THE
OFFER
X OFFERS £100 FOR THE SAFE
RETURN OF HIS MISSING DOG.
Y RETURNS THE DOG BUT IS
UNAWARE OF X’S OFFER. IS Y
ENTITLED TO THE MONEY?

18. GIBBONS V PROCTOR (1891)
• P, a superintendent, offered a reward for information leading to
the capture of X.
• G, a policeman, offered the info to a 3rd party to relay it to P
before he knew of the reward.
• G knew of the reward by the time the information was relayed
to P.
• The court held that he was entitled to the reward.
• This suggests that acceptance of an offer can occur, even if
one is unaware of the offer.

19. WILLIAMS V CARWARDINE (1833)
• The defendant put up an advert offering a reward for anyone who
gave information leading to the identification of the person who
murdered the defendant’s brother.
• The claimant knew who did it, but when she saw the advert she did
not come forward. She was later badly beaten by the murderer.
Believing that she was going to die and seeking to ease her
conscience, the claimant provided the information to the defendant.
This information helped the police convict the man of murder.
• The claimant later claimed the reward. However, the defendant
refused to pay. He argued that the claimant was not motivated by
the offer when she gave the information, but rather had other
motives. This, he claimed, meant that there was no contract.
• The court held in favour of the claimant. The claimant’s motives
were not relevant to whether she had accepted the offer in the
advert.

20. LEGAL
PROVISIONS OF
BANGLADESH
CONTRACT ACT, 1872

21. REVOCATION IN
BANGLADESH
Communication, acceptance and revocation of proposals:
Section 3
• The communication of proposals, the acceptance of proposals,
and the revocation of proposals and acceptances, respectively,
are deemed to be made by any act or omission of the party
proposing, accepting or revoking by which he intends to
communicate such proposal, acceptance or revocation, or
which has the effect of communicating it.

22. REVOCATION IN BANGLADESH
• The communication of a revocation is
complete,
as against the person who makes it, when it
is put into a course of transmission to the
person to whom it is made, so as to be out of
the power of the person who makes it;
as against the person to whom it is made,
when it comes to his knowledge.

23. ILLUSTRATION
• A revokes his proposal by telegram.
The revocation is complete as against A when the
telegram is dispatched. It is complete as against B
when B receives it.
• B revokes his acceptance by telegram. B's revocation
is complete as against B when the telegram is
dispatched, and as against A when it reaches him.

24. REVOCATION IN BANGLADESH
Revocation of proposals and acceptances:
Section 5:
• A proposal may be revoked at any time before the
communication of its acceptance is complete as
against the proposer, but not afterwards.
• An acceptance may be revoked at any time before
the communication of the acceptance is complete as
against the acceptor, but not afterwards.

25. ILLUSTRATION
• A proposes, by a letter sent by post, to sell his house to B.
B accepts the proposal by a letter sent by post.
A may revoke his proposal at any time before or at the
moment when B posts his letter of acceptance, but not
afterwards.
B may revoke his acceptance as any time before or at the
moment when the letter communicating it reaches A, but
not afterwards.

26. THANK YOU