LAW OF CONTRACTS

ACCEPTANCE AND ITS ESSENTIALS

ARMY INSTITUTE OF LAW, MOHALI

In Partial Fulfillment OF BA-LLB 5 Years

Degree

Submitted By: Submitted To:

Manuureet Singh Mrs Ramneek kaur
Roll No- 1713
 LAW OF CONTRACTS

ACCEPTANCE AND IT’S ESSENTIALS :-

Acceptance :

A proposal when accepted , results in an agreement. It is only after the

acceptance of the proposal that a contract between the two parties can
arise.

According to Section 2(b)1: “When a person to whom the proposal is

made signifies his assent thereto, the proposal is said to be accepted. A
proposal, when accepted , becomes a promise.”

In simple words, acceptance is a promise or act on the part of an offeree

indicating a willingness to be bound by the terms and conditions
contained in an offer.2

The person making the proposal does not become bound thereby untill
its acceptance. As soon as his proposal is accepted that is known as
promise, whereby both parties become bound.

A contract is created only after an offer is accepted. Before the

acceptance is made neither party is bound thereby. At that stage the
offeror is free to revoke or withdraw his offer and the offree is free not to
accept the offer or to reject the same. After the offer has been accepted,
it becomes a promise which, if other conditions of a valid contract are
satisfied, binds both the parties to the promise and would result in a
contract creating obligations for both the parties. 3

In Gajendra Singh v. Nagarpalika Nigam, Gwalior 4.........pg 27

1
Section 2(b), the Indian Contract Act, 1872.
2
R. Austen-Baker, "Gilmore and the Strange Case of the Failure of Contract to Die After All" (2000) 18 Journal
of Contract Law 1.
3
R.K Bangia, Contract-I, pg 26 (2017)
4
A.I.R 1966 M.P 10.
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