Acceptance must be communicated to the person who has made an offer.

Mental acceptance, failure to answer or silence on part of the offeree is not acceptance, as it is not communicated. However for a general offer, no acceptance is necessary, if it is made by complying with the terms of the offer.(Carbolic Smoke Ball Case) Eg- A offers to B to sell his house in a prime locality for Rs. 25 lakhs. B had made up his mind to purchase it, but does not say anything to A. There is no acceptance as it is not communicated.

Case: Felthouse v/s Bindley
Facts- Felthouse wrote a letter to his nephew, “I want to buy your horse. If I hear no more from you, I shall assume the horse to be mine.” Nephew informed Bindley, an auctioneer, to keep the horse out of sale. Bindley by mistake sold the horse to somebody. When Felthouse came to know this, he brought an action against Bindley. Held- An uncommunicated acceptance is not an acceptance at all. Further acceptance cannot be waived by the proposer.

Acceptance must be communicated by the person to whom an offer has been made.

Acceptance shall be made only by the person to whom the offer was made. However, in case of general offer, acceptance can be inferred from any member of the public, by their adherence to the terms of the offer. Case: Powell v/s Lee Facts- Powell was a candidate for headmastership of a school. The school managing committee passed the resolution appointing Mr. Powell. Lee, who was one of the members of the managing committee happened to be a friend of Mr. Powell. He informed Powell of his appointment. However, due to some external pressures, the resolution was withdrawn. Held- Lee had informed Powell in his friendly capacity and the communication was not on behalf of the school authorities.

If acceptance is communicated in some other manner and the offered remains silent. 5. Such an acceptance is not binding on the offerer. Eg. it is called qualified acceptance and is not binding on the person who makes the proposal. Illustrations 1) A prospective buyer offers to buy an article from a seller at a certain price to be paid after three months. he is deemed to have assented to B’s acceptance in such mode as had been made by B. Even if B accepts otherwise. . even if it not in the prescribed manner. 4. B shall reply only by telegram and not otherwise. Acceptance with a variation constitutes a counter offer and is not a valid acceptance. When no mode is prescribed. a valid acceptance can be only for the exact terms of the offer as proposed by the offered.A sends a letter to B offering to sell his old carriage and asks B to reply by telegram. 6. If A does not so insist within a reasonable time. This is not a valid acceptance as it is qualified. An offer once rejected is dead and cannot be accepted unless it is revived. Acceptance must be absolute and unqualified. Acceptance should emanate from an offer. Illustration Counter offers. In other words. then it shall be made in that mode only. Acceptance should only be in response to an offer i.3. A can insist on receiving a telegram. If the person to whom an offer is made accepts the same subject to some conditions.X cannot say that he accepts to buy Y’s house without an offer from Y. he is deemed to have consented to the acceptance. K replies that he would buy it only if he gave the calf along with it.e acceptance cannot precede an offer. Seller accepts the offer provided cash is immediately paid. Eg. it shall be made in some usual and reasonable manner. Acceptance must be communicated in the prescribed manner only else it is not binding on the proposer. 2) J offers to sell his cow to K. If the offer prescribes a mode of acceptance.

And as regards H. REVOCATION OF ACCEPTANCE .The proposer becomes bound only when a properly addressed and adequately stamped letter is posted. 2. acceptance is said to be communicated when the letter reaches G. 3.ACCEPTANCE THROUGH POST In case of acceptance through post. By failure of the acceptor to fulfil a condition precedent to acceptance. 4.' A proposal may be revoked at any time before the communication of its acceptance is complete as against the proposer. communication of acceptance is complete when the letter is posted.Section 5 . when it comes to the knowledge of the proposer. By death or insanity of the proposer. the communication of acceptance is complete. By lapse of time prescribed in such proposal for its acceptance. but not afterwards. a) b) as against the proposer. As regards G. offer comes to an end. communicates his acceptance by post. in response to G’s offer. If no time is so prescribed. by the lapse of a reasonable time.H. By communication of notice of revocation by the proposer to the other party. Eg. What is reasonable time will depend upon the facts and circumstances of each case. When a proposal is revoked. when the letter of acceptance is put in the course of transmission to him. and as against the acceptor. Section 6 A proposal can be revoked in any of the following four ways1. Note:. REVOCATION OF A PROPOSAL .Section 5 Revocation means 'withdrawing' or 'taking back.

i) ii) as against the person who makes it. when it comes to his knowledge. N accepts the offer and delivers to M the letter of acceptance. .m. Is N’s acceptance valid? Held – . It is complete as against B. The revocation is complete as against A when the telegram is despatched. .Hence. M enters into a contract to sell the property to P.M agreed on Monday to sell his property to N by a written agreement which stated that “this offer to stay open till Saturday 10 a.An acceptance may be revoked at any time before the communication of acceptance is complete as against the acceptor. M had formally communicated his revocation to him. COMMUNICATION OF REVOCATION Section 4 Communication of revocation is complete. as against the person to whom it is made. before acceptance by N. On Friday. hears about the deal between M and P.Overhearing by N does not amount to valid revocation by M. 2) Facts . when it is put in the course of transmission to the person to whom it is made so as to be out of the power of the person who makes it. Illustrations1) A revokes his proposal by telegram.The treatment would have been different if. N. .” In the meantime on Wednesday. when B receives it. N’s acceptance is perfectly valid. but not afterwards. .Acceptance is made before the revocation of the offer by M and well within the specified time limit set by M in his letter of offer. who was sitting in the next room at that time.

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