An Introduction to the Law of

Contracts
Ctd……
• Acceptance s.2 (b)
• When the person to whom the proposal
is made signifies his assent thereto, the
proposal is said to be accepted.
• The person to whom the proposal is made
• Signifies
• His assent
• Thereto
• Specific and general offers
• Signifies
– Communication
– Whether silence is acceptance?
• Felthouse v. Bindley (1862)
• Law does not cast a duty on the person to
whom a proposal is made to reply to that
proposal.
• Acceptance cannot be inferred from the
silence of the promisee.
• Since it is the promiser who takes the
initiative by proposing for conclusion of the
contract, the promisee is free to accept or
not to accept, but also to simply ignore it.
• However, in exceptional circumstances
silence may be construed as acceptance.
– If silence is reinforced by conduct.
• Roberts v. Hayward (1828)
– Tenant continuing to stay.
• Communication when complete?
– The communication of an acceptance is
complete,-- as against the proposer, when it is
put in a course of transmission to him, so as to
be out of the power of the acceptor; as against
the acceptor, when it comes to the, knowledge,
of the proposer.
– B accepts A’s proposal by a letter sent by post.
– The communication of the acceptance is
complete,
• As against A when the letter is posted
• As against B, when the letter is received by A.
• Justification for the postal rule
– Not on the basis of logic but business
convenience. It limits the power of the proposer
to revoke the acceptance.
• Assent
• S.7
• Assent – Absolute and Unconditional S.7
• In order to convert a proposal into a
promise, the acceptance must-   (1) be
absolute and unqualified; 
• In order to convert a proposal into a
promise, the acceptance must- 

  (1) be absolute and unqualified; 

• If the acceptance is conditional or qualified,
it becomes a counter proposal.
• It does not create a contractual relationship.
(2) Be expressed in some usual and
reasonable manner, unless the
proposal prescribes a manner in which it
is to be accepted, and the acceptance is
not made in such manner, the proposer
may, within a reasonable time after the
acceptance is communicated to him
• insist that his proposal shall be accepted
in the prescribed manner, and not
otherwise; but if he fails to do so, he
accepts the acceptance.
• Revocation
– Proposal
– Acceptance
• Revocation of a proposal
• S.6 Can be done in any of the following
ways:
– By Communication
– By Lapse of time
– By the failure to fulfill a condition precedent
– By the death or insanity of the proposer
• Communication
– Ss. 3&4
• Time limit within which the proposal can be
revoked
• A proposal may be revoked at any time
before the communication of its acceptance
is complete as against the proposer, but not
afterwards.
• A proposes, by a letter sent by post, to sell
his house to B. B accepts the proposal by a
letter sent by post.
• A may revoke his proposal at any time
before or at the moment when B posts his
letter of acceptance, but not afterwards.
• Even acceptance can be revoked.
• By lapse of time S.6(2)
• by the lapse of the time prescribed in such
proposal for its acceptance, or, if no time is
so prescribed, by the lapse of a
reasonable time, without communication
of the acceptance;
• Two situations
– Where the proposal prescribes the time limit
– Where the offer is silent