ACCEPTANCE

Lecture Outcomes
• Cognize the legalities involved in creation
of a valid acceptance
Section 2(b) states that

“ When the person to whom the proposal is made

signifies his assent thereto the proposal is said to be
accepted.”

Types:
(i) Express Acceptance
(ii) Implied Acceptance
e.g. Highest bid, niece staying at aunt’s house
 Legal Rules : Acceptance

(i) It must be absolute and unconditional.

(ii) It must be communicated to the offeror.
(iii) It must be made within a reasonable time.
(iv) It must be according to the mode prescribed or usual or
reasonable mode.
(v) The acceptor must be aware of the proposal at time of
the offer.
(vi) Acceptance must be given before the offer lapses or
before the offer is revoked.
(vii) Acceptance cannot be implied from silence.
1. Acceptance must be absolute
and unconditional

• Conditional acceptance is not at all acceptance

• Partial acceptance is nothing but conditional
acceptance.
Mr A made an offer to sell his car to Mr B at a price of Rs.
5000. B did not agree with the price asked for by A and gave
his acceptance conditionally saying that he wanted to
purchase that car at Rs. 4500

Discussion Point
Was acceptance effective to bind the parties under
contract???
 2. Acceptance must be
communicated to the offeror
The manager of a railway company received an
offer by a letter relating to the supply of coal ;
he wrote on the letter accepted and kept it in
his drawer and forgot all about it .It was held
that there was no contract as acceptance has
not been made.
3. It must be made within a
reasonable time

Ramsgate Victoria Hotel Co .Vs Monte Fiore

A person applied for shares in a company in
June .He cannot be bound by an allotment
made late in November
4. It must be made according to
the mode prescribed or usual or
reasonable mode
 5. The acceptor must be aware
of the proposal at the time of the
offer
A sold his business to his manager B without disclosing the
fact to his customers C, a customer who had a running
account with A, sent an order for the supply of goods to A
by name .B received the order and executed the same .C
refused to pay the price. It was held that there was no
contract between B and C because C never made any offer
to B and as such C was not liable to pay to B . (Boulton VS
Jones)
 6. Acceptance must be given
before the offer lapses or before
the offer is revoked

A prospective resignation to quit a post is an offer

and it can be withdrawn before the resignation is
accepted by a competent authority
 7. Acceptance cannot be
implied from silence

Pankaj told Radha,” I offer you my car for Rs 50000.If

you don’t reply in ten days time, I shall assume that
you accept the offer. Radha kept silent. Held there
was no contract
8. Acceptance is irrevocable
9. Acceptance given to renewed
offer is valid
 10. Acceptance must be given
by that person only to whom the
offer is made
 MCQs
Communication of acceptance is complete as against the acceptor
a) When it comes to knowledge of the proposer
b) When it is put in the course of transmission
c) When it is communicated to the acceptor that the acceptance has
reached the proposer
d) When the proposer conveys the acceptance to the acceptor
A general offer open for the world at large can be accepted
a) By sending a communication of acceptance
b) By complying with the conditions of the offer
c) By tendering himself to comply the conditions of the offer
d) None of above
Where the post is a valid means of acceptance, at what point will
the offeree have been held to have accepted the offer?
a. When the letter of acceptance has been written.
b. When the letter of acceptance has been correctly addressed, its
postage paid, and posted.
c. When the letter of acceptance is received by the offeror.
d. When the letter of acceptance is opened and its contents read
by the offeree.
Acceptance to an offer may be given by
a) Any person
b) Competent person
c) Authorized person
d) Both by (b) and (c)
An offer was sent by post. The Acceptor wrote “Accepted” on
the letter, put it in his drawer and forgot about it. The
transactions is
a) A valid contract
b) Not an agreement as the acceptance was never
communicated to the Proposer
c) A voidable Contract
d) A void contract