ACCEPTANCE

Acceptance: the act of consenting to a proposal. When a proposal is agreed upon it is called
acceptance.

Acceptance is made:-

1-

Either through an act of writing or verbal announcement

2-

Or by doing something which is required. (by conduct)

Example: A merchant receives an order from a customer to supply some household items. The
merchant delivers the good to the customer.

(the acceptance in this case is by conduct/ or by performance of the act) i.e. the act of sending
the goods to the customer.

Example:. Mr. A loses this dog. A announces a general offer of a reward of Rs.100 to anyone
finding his dog. B finds the dog and claims the reward. He is entitled to the reward (B need not
communicate his acceptance as he had accepted the offer by doing the required act).
Example: You sit a bus going destination X. By merely sitting on the seat you imply that you
accept the offer of the Transport Company to take you to destination X..

When the person to whom the proposal is made signifies his assent, it is an
acceptance of the proposal.
An acceptance proposal is called a promise or an agreement. [Section 2 (B)]
An application for the shares in a company is in the nature of offer while the
allotment of the shares by the company is an acceptance resulting into a
contract.

Example: A offers to sell his horse to B for Rs. 500. B accepts the offer to purchase the
horse for Rs. 500. This is acceptance.

Acceptance may be express or implied.

Mental acceptance is no acceptance.
When acceptance is made by words, spoken or written, it is an express
acceptance.
If it is accepted by conduct, it is an implied acceptance. Thus where a person
boards a train or bus, he impliedly accepts to pay the usual fare.
Who may accept? An offer can be accepted only by the person to whom the offer
is made. It means that the person to whom the offer is made can alone accept it.
It cannot be accepted by another person without the consent of the person
making it.

ESSENTIAL ELEMENTS OF A VALID ACCEPTANCE

1. Acceptance must be absolute and unconditional.

a. An acceptance must be unconditional and unqualified.

b. Accepting an offer with conditions, variations and reservations amounts to
counter offer and rejection of the original offer.
c. The accepter must comply with the terms of the offer.
d. A variations or alteration, however, small of the offer, will make the
acceptance invalid.(Installment)
2. Acceptance must be communicated to the offeror.
a. If the offeror remains silent and does nothing to show that he has
accepted the offer, no contract is formed.
b. The acceptor should do something to signify his intention to accept. Thus,
where a person accepts an offer but fails to post the letter of acceptance,
it is no acceptance.
3. Acceptance must be within a reasonable time.
a. Acceptance to be valid must be made within the time allowed by the
offeror and if no time is specified, it must be made within a reasonable
time.
4. It must be according to the mode prescribed or usual or reasonable mode.
a. Acceptance has to be made in the manner prescribed,or indicated by the
offeror .
b. Section 7(2) states that if Acceptance has not made in the manner
prescribed, the proposer may within a reasonable time after the
acceptance is communicated to him, insist that the acceptance must be
made in the manner prescribed.
c. Failure on the part of the offeror to do so, will imply that he has accepted
the acceptance although it is not in the desired manner.
5. The acceptor must be aware of the proposal at the time of the offer.
a. Acceptance follows offer. If the acceptor is not aware of the existence of
the offer and conveys his acceptance, no contract comes into being.(A,B
and C)
6. Acceptance must be given before the offer lapses or before the offer is revoked.
It means that acceptance must be made within the offer is in force i.e. before the
offer has been revoked or offer has lapsed.
7. Acceptance cannot be implied from silence. No contract is formed if the offeree
remains silent and does nothing to show that he has accepted the offer