What is acceptance? According to the Indian Contract Act, 1872, Section 2(b), acceptance is expressed as “When the person to whom the proposal has been made signifies his assent thereto, the offer is said to be accepted. Thus, the proposal when accepted becomes a promise.”What is acceptance? According to the Indian Contract Act, 1872, Section 2(b), acceptance is expressed as “When the person to whom the proposal has been made signifies his assent thereto, the offer is said to be accepted. Thus, the proposal when accepted becomes a promise.”What is acceptance? According to the Indian Contract Act, 1872, Section 2(b), acceptance is expressed as “When the person to whom the proposal has been made signifies his assent thereto, the offer is said to be accepted. Thus, the proposal when accepted becomes a promise.”What is acceptance? According to the Indian Contract Act, 1872, Section 2(b), acceptance is expressed as “When the person to whom the proposal has been made signifies his assent thereto, the offer is said to be accepted. Thus, the proposal when accepted becomes a promise.”What is acceptance? According to the Indian Contract Act, 1872, Section 2(b), acceptance is expressed as “When the person to whom the proposal has been made signifies his assent thereto, the offer is said to be accepted. Thus, the proposal when accepted becomes a promise.”
3. MEANING
According to the Indian
Contract Act, 1872, Section
2(b), acceptance is expressed
as “When the person to whom
the proposal has been made
signifies his assent thereto,
the offer is said to be
accepted. Thus, the proposal
when accepted becomes a
promise.”
5. EXAMPLE :-
“Can I buy your
car for $1,500?”
“Yes, I accept your
offer to buy my
car for $1,500.”
6. Essential
s /
Elements
of
Acceptan
ce
1. Acceptance by whom the offer is made or by
authorized agent .
2. Communication of acceptance must be made ,
mere mental resolution to accept is no
acceptance .
3. Communication must be made by reasonable
manner or manner prescribed .
4. Absolute / unqualified must be in terms of
proposal in TOTALITY .
7. Communicati
on :- When it
reaches ?
Communication of acceptance
in contract is only complete
when the party to whome the
offer is made accepts the same .
OR
An acceptance can only be
communicated by the person to
8. FELTHOU
SE
V.
BINDLY
[ 1863 ]
Facts:
Paul Felthouse was a builder who lived in London. He wanted to buy a horse from his
nephew
called John Felthouse. Uncle offered to buy a horse from nephew by stating in his written
statement that “if I hear no more about him, I consider the horse mine at £30 15s.” The
nephew,
John did not reply to him and was busy at his farm in Tamworth however he asked his
auctioneer, William Bindley to reserve the horse i.e. not to sell the horse. But by mistake,
the
horse was sold by auctioneer and fetched more money than the uncle offered. Auctioneer
soon
realized his mistake and hence wrote to the uncle apologizing for the error committed. He
also
stated in his writing that “Instructions were given me to reserve the horse ...”. Later
nephew
also wrote to his uncle stating that he was annoyed by the negligence shown by the
auctioneer
as he already told him that the horse was sold. He further also stated that he will try to
recover
the horse from the buyer. Auctioneer was sued for the tort of conversion i.e. to use
someone
else’s property inconsistently with their rights. But to show that the horse belonged to Mr.
Paul
Felthouse he had to prove that it was a valid contract. Whereas Bindley argued that the
nephew
never communicated his acceptance to the offer of buying the horse made by the uncle.
9. Issue:
This case calls into question whether or not
a valid contract existed between Plaintiff,
Paul
Felthouse and defendant William Bindley.
Additionally this case raises the question of
whether
silence or a failure to reject an offer
amount to acceptance.
Judgement:
It was held that there was no contract for the
horse between the complainant and his nephew.
There had not been an acceptance of the offer;
silence did not amount to acceptance and an
obligation cannot be imposed by another. Any
acceptance of an offer must be communicated
clearly. Although the nephew had intended to
sell the horse to the complainant and showed
this interest, there was no contract of sale.
FELTHOUSE
V.
BINDLY
[ 1863 ]
10. LALMAN
SUKHLA
V.
GAURI
DUTT
[ 1930 ]
Facts of the case:
In this case the defendant Gauri Dutta Vs. Nephew was absconded
from his house. The trace of the boy was not found. After the
incident Gauri Dutt the defendant send all his servants in search for
her missing nephew and out of the servants was the plaintiff Lalman
Shukla who had also gone to find the boy and bring him back.
After Lalman shukla had left the house and was sent to Haridwar
from Kanpur . He was provided with money and other expenses for
his railway fare. As soon as Lalman Shukla left the house Gauri Dutt
made an announcement that any person who will trace and find his
missing Nephew will be rewarded with money of Rs 501. Lalman
Shukla had no idea and was not aware of the fact . He had no
knowledge about it before he went to trace the missing boy.
Then Lalman shukla traced the boy and brought the boy back to
Kanpur. After knowing about the reward Lalman Shukla claimed the
money from his master Gauri Dutt. But Gauri Dutt denied paying the
reward of Rs 501 to him. As a result the plaintiff Lalman Shukla filed
a case against Gauri Dutt his master for not giving him the reward
as he is not entitled to recover for the performance of his act.
11. Issues raised in this case:
The main issues which was
raised in this case were as
follows
Whether there exists a
contract or whether the
situation amounts to contract
between the two
Whether Lalman Shukla was
entitled to get the reward from
Gauri Dutt for tracing the
missing boy
Whether there was a valid
acceptance of the offer made
by the plaintiff
12. Judgement of the case:
In the case of Lalman Shukla verses Gauri
Dutt case the petitioners appeal against the
respondent Gauri Dutt was dismissed by the
court. After analyzing all the facts of the case
It was held by the honorable court that for
creating or entering into a valid contract
there has to be knowledge and assent to the
offer being made by the proposer. There has
to be proper acceptance or the offeree must
give his approval before accepting which was
absent in the present case.
The plaintiff had no knowledge about the
reward before performing his act. He came
to know afterwards in which there is no
possibility of accepting the offer. Hence
there exist no contract so as a result the
court came to the decision that the appellant
Lalman Shukla was not entitled to get the
reward . without having any prior knowledge
and information about the facts which
restricts him to claim the reward.
13. CONCLUSION
The acceptance of the offer is the
agreement to a request or
proposal. The acceptance can be
oral or written, but it must be
unequivocal and unconditional to
have legal effect. An offer, once
accepted, becomes a binding
contract. For a contract to be
legally binding, both parties must
agree to the terms.
An offer, once accepted, becomes a