Acceptance in contract Act LLB Notes

ACCEPTANCE 

Definition: 

 A proposal or offer is said to have been accepted when the person to whom the proposal is made signifies his  assent to the proposal to do or not to do something [Sec.2 (b)].
Acceptance is an expression, by words or conduct, which clearly indicates that the person making it agrees to be  bound by the terms of offer.

Rules of Acceptance: 

1. Acceptance must be absolute and unqualified (Sec 7(1)): 

 As per Sec.7 an acceptance is valid when it is absolute and unqualified and is expressed in some usual and reasonable manner, unless the proposal prescribed the manner in which it is to be accepted.
 Also an acceptance with a variation is no acceptance. It is simply a counter proposal which shall have to be  accepted by the original proposer before a contract can be deemed to have come into existence. A counter proposal is the offer by the offeree and can result in a contract only if it is accepted by the other party.

2. The acceptance must be expressed in some usual or reasonable manner (Sec.7(2)): 

a) Where the mode of acceptance is prescribed in the proposal, it must be accepted in that
manner.

b) But if the proposer does not insist on the proposal being accepted in the manner prescribed
after it has been accepted otherwise, i.e., not in the prescribed manner, the proposer is
presumed to have consented to the acceptance.

c) If acceptance is not communicated according to the mode prescribed, it is called deviated acceptance. Even in such a case acceptance is not invalid.

d) Law imposes a duty on the offeror to reject such acceptance within a reasonable time. If he fails to do so, he  ecomes bound by the acceptance
E.g.: If the Offeror prescribes acceptance through messenger and offeree sends acceptance
by email, there is no acceptance of the offer if the offeror informs the offeree that the
acceptance is not according to the mode prescribed. But if the offeror fails to do so, it will be
presumed that he has accepted the acceptance and a valid contract will arise.

3. Acceptance must be given before the offer lapse of time or being revoked:

 Acceptance can be given only to an  existing offer. When an offer terminates, it cannot be accepted.

4. An acceptance must be communicated to the offeror:

 It must further be remembered that an acceptance must  be communicated to the person who made the offer. The Offeree should do something to signify his assent i.e. to  communicate his acceptance.
Acceptance can be communicated in any of the fol lowing modes:

a) By words spoken,
b) By words written,
c) By conduct.

5. Acceptance by conduct: 

The assent means that acceptance has been signified either in writing or by words of
mouth or by performance of some act. Therefore, when, a person performs the act intended by the proposer as  the consideration for the promise offered by him, the performance of the act constitutes acceptance.

6. Mere silence is not acceptance: 

The acceptance of an offer cannot be implied from the silence of the Offeree or  his failure to answer, unless the Offeree has in any previous conduct indicated that his silence is the evidence of acceptance.
E.g.: ’A’ subscribed for the weekly magazine for one year. Even after expiry of his subscription, the magazine  company continued to send him magazine for five years. And also ‘A’ continued to use the magazine but denied  to pay the bills sent to him. ’A’ would be liable to pay as his continued use of the magazine was his acceptance of  the offer.

7. Where the Offeree;-

       where the offeree (having reasonable opportunity to reject the offered goods or services) enjoys or avails the  benefits of goods or services, it will be regarded as acceptance.

8. Agreement to agree in future;-

     Agreement to agree in future is not valid.

10. Time:-

 Acceptance must be given within the specified time limit, if any, and if no time is stipulated, acceptance must be given within the reasonable time and before the offer lapses.

11. Acceptance cannot precede an offer;-

 Acceptance must be given after receiving the offer. It should not precede  the offer.

12. Acceptance cannot be made in ignorance of offer:

 An acceptance made by the intendedOfferee without the knowledge that an offer has been made to him cannot be deemed as an acceptance thereto. (Bhagwandas v.Girdharilal). The rule is that acceptance follows the offer.

13. A mere mental acceptance is not considered as acceptance in the eyes of law. 

E.g.: A draft agreement relating to the supply of coal was sent to the manager of a Railway
company for his approval. The manager put the words ‘approved’ on the agreement but the draft remained in his  table. Held, there was no contract because there is no communication.

MODES OF ACCEPTANCE 

1. Usual mode : the common way to accept any offer

2. Reasonable Mode : the quick easy and fast means to accept given offer in reasonable manner(i.e. by call ,email ,what’s app )

3. Prescribed mode: Such mode in which acceptance to given as mentioned in offer.
Some conditions have to be followed in order to give absolute acceptance.

Exception to Modes of Acceptance 

1. Postal Rule
2. Unilateral contracts