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Acceptance of Contract

Acceptance of Contract

Acceptance is not a separate act. We can say that to constitute a valid contract acceptance is an important element.

Agreement and enforceable by law consolidately forms Contract. Agreement incorporate two terms i.e OFFER and ACCEPTANCE. According to ICA 1872, acceptance has been defined in S.2(b)  In simple words acceptance means to agree to an offer of someone. A person who makes offer is known as offeror or promisor and to whom offer is made is known as offeree or promisee.

Offer + Acceptance = Promise.

 Promise + Consideration = Agreement.

Enforceable means either of the party in a contract can legally compel the performance of the other.

  • There are three types of acceptance.

Conditional Acceptance

It is sometimes called qualified acceptance. This type of acceptance operates as a counteroffer, it occurs when the offeree tells the offeror that he or she is willing to agree to the offer provided that some changes are made.

Express Acceptance

It occurs when a person clearly agrees to an offer or agrees to pay a draft that is presented for payment.

 Example- sale of real estate

Implied Acceptance

It is the acceptance which is not directly stated but by demonstrated by any act.

Example- when a buyer selects an item and pays the cashier.

  • There are some legal rules available to create a valid acceptance –

I. Acceptance must be absolute(complete) and unqualified. (without changes)

 It means the condition of the offer should not change in the acceptance. Example- A    offers to sell his scotty to B for 5000/- .B says he accepts if A will sell it for 4500/-. This is not acceptance, it will count as a counteroffer.

Case – Hyde v wrench(1840)

II. Acceptance must be expressed in usual and reasonable manner.

Acceptance must be expressed in prescribed manner.

III. Acceptance must be communicated

 Communication Of acceptance completes against the proposer when the acceptance is put in the course of transmission which means out of his control whereas it completes against the acceptor when it comes in the knowledge of the proposer.

Case – Felthouse vs Bindley.

IV. Acceptance can only be given to whom the offer was made or his authorized              agent.

In this case no third person without the knowledge of the offeree. no acceptance is made when no one is authorized to convey the offer.

V. Acceptance must be given within a reasonable time and before the offer lapses or is revoked

Case – Shree Jay a Mahal Cooperative Housing society vs. Zenith chemical works Pvt. Ltd.

 VI. Acceptance must succeed the offer

Case- Lalman Shukla v gauri dutt (1913)

 

VII. Acceptance must be made with the intension to fulfill the terms of an offer.

There are conditions and terms specified in an offer which should be fulfilled by the offeree in order to accept it.

Conclusion – Acceptance require three elements that is communication, commitment and definite terms. A valid acceptance arises only when the acceptance is absolute.

By Divya Verma

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