Law of Contract – Acceptance

 

ACCEPTANCE

A proposal or offer is said to have been accepted when the person to whom the proposal is made signifies his assent to the said proposal. Act of acceptance lies in signifying one’s assent to the proposal.

According to Sir William Anson “Acceptance is to offer what a lighted match is to a train of gun powder”. That is what acceptance triggers cannot be recalled or undone. But there is a choice to the person who had the train to remove it before the match is applied. It in effect means that the offer can be withdrawn just before it is accepted. Acceptance converts the offer into a promise and then it is too late to revoke it. The significance of this is an offer by itself cannot create any legal relationship but it is the acceptance by the offeree which creates a legal relationship.


Essentials of a Valid Acceptance

  1. For a valid acceptance, there must be knowledge of offer. Without knowledge of offer, there can be no acceptance. For example, where a person finds a missing dog without knowledge of award, he cannot claim the award afterwards.

  2. The acceptance must be communicated. To conclude a contract between the parties, the acceptance must be communicated in some perceptible form.

  3. Acceptance must be made by the promisee himself or any person having authority to accept on his behalf.

  4. The acceptance must relate specifically to the offer made.

  5. Acceptance must be absolute and unqualified.

  6. It should be expressed in some usual and reasonable manner unless the proposal prescribes the manner in which it must be accepted. If the proposal prescribes the manner in which it must be accepted, then it must be accepted accordingly.

  7. The acceptance must be given within a reasonable time and before the offer lapses.

  8. Acceptance may be express or implied. It may also be expressed by conduct.

  9. But mere silence is not acceptance. As already stated, the burden to refute the offer cannot be placed on the promisee.


Illustrations

  1. A offers to B to sell A’s car for Rs. 2 lacs. If B replies – “I shall purchase your car for the said price, if A buys B’s motorcycle for Rs. 50000/-.” This is no acceptance as it is conditional. By its very nature, it is a counter offer to A, who may accept or deny it.

  2. If, in the above example, B agrees to purchase the car from A as per his offer if A has a valid Registration Certificate. The acceptance is a valid one. This is because expecting a valid title for the car is not a condition.

  3. A offers to sell his house to B for Rs 5,00,00/-. B replied purporting to accept the offer but enclosed a cheque for Rs 2,00,000/- only and promises to pay the balance in monthly installments. Acceptance is invalid not being an unqualified one.

  4. A offers to sell his car to B for Rs. 1,00,000/-. B replied that, “I can pay Rs. 80,000 for it.” A’s offer stands rejected. Later on, if B decides to pay Rs. 1,00000/-, the same will be a counter offer only as A’s offer was already rejected.

  5. A, a trader, receives an order from B. The order is executed accordingly by the trader. A has made acceptance to the offer by his conduct.

  6. A boards a bus to Delhi. A’s conduct amounts to acceptance.

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