Acceptance

• When the person to whom the proposal is made signifies his assent
thereto, the proposal is said to be accepted
• The person making the proposal does not become bound thereby
until its acceptance
• As soon as the proposal is accepted that is known as promise, where
by both the parties become bound
• May be express or implied
• Eg: acceptance is fall of hammer in case of auction sale
• A mere mental determination to accept unaccompanied by any
external indication will not be sufficient
• The offeree is not bound to accept the offer
• He is free to reject it or make it to lapse by non-acceptance
Effect of acceptance
• Anson says, “acceptance is to an offer what a lighted match is to a
train of gun powder”. It produces something which cannot be recalled
or undone
• An offer may lapse for want of acceptance or be revoked before
acceptance
• Acceptance converts the offer in to a promise and then it is too late to
remove it
Essentials of acceptance
• Should be communicated
• Case law- Felthouse v. Bindley
• Case law- Powell v. Lee
• Should be absolute and unqualified
• Should be made in the prescribed manner or in some usual and
reasonable manner
• Should be made while the offer is still subsisting
When communication of acceptance is
complete
• When the parties are in presence of each other the contract is
concluded when acceptance is communicated to the proposer
• However when the parties are at a distance and are contracting
through post or by messenger the proposer become bound as soon as
the acceptance is put in the course of transmission to him
• Eg: when letter of acceptance is posted by acceptor
• But the acceptor will become bound only when the communication of
acceptance is received by the proposer
• Eg: comes to the knowledge of the proposer
• Under both Indian and English laws, a contract is made at a place
where letter of acceptance is posted
• Under English law - when a letter of acceptance is posted, both the
offeror and acceptor become bound