What is acceptance? What are the essential terms of a valid acceptance?

Question: What is acceptance? What are the essential terms of a valid acceptance? [MPJS 2011]

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Answer

Acceptance is the next step to the offer that marks the beginning of a contractual relationship. It has to be absolute, unqualified, and as per usual and reasonable manner.

Indian Contract Act, 1872 (hereinafter “The Act”), defines the concept of acceptance under Section 2(b) as, “When the 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.”

Hence, the significance of the assent of a party is very important. A promise emerges as soon as this assent gets attached to an offer. The promise associated with consideration is an agreement. When that agreement becomes enforceable by law, it is a contract

Following are the essential terms required to be satisfied for a valid acceptance:-

Acceptance may be express or implied: According to Section 3 and 9, if acceptance is made with words spoken or written, it is an express acceptance, and if acceptance is made otherwise than in words, it is implied. What is necessary is that there should be some external manifestation of acceptance. A mere mental determination to accept unaccompanied by any external indication will not be sufficient.

Communication must be communicated to the offeror himself: Communication of acceptance of a proposal should be communicated to the offeror himself. If it is made to anyone, it will be ineffectual as if there was no communication. It is also pertinent that the communication of acceptance should be from a person who has the authority to accept.

Necessity of communication: In the case of a specific offer, communication of acceptance must be made by the acceptor, and to the offeror himself. But in all cases of general offers, it can be accepted by anyone, who fulfils the condition of the offer. Section 8 provides that the performance of the conditions of a proposal is an acceptance of the proposal.

Acceptance must be absolute and unqualified: Section 7 of the Act provides that ‘In order to convert a proposal into a promise, the acceptance must be absolute and unqualified. An acceptance with variation is no acceptance, but simply a counter-proposal that has to be accepted by the original promisor before a contract is made. Partial acceptance of an offer is only a counter-proposal. An offeree cannot simply accept the terms which are favourable to him and reject the rest unless the offeror agrees to qualified acceptance.

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Law of Contract Mains Questions Series: Important Questions for Judiciary, APO & University Exams

1. Law of Contract Mains Questions Series Part-I
2. Law of Contract Mains Questions Series Part-II
3. Law of Contract Mains Questions Series Part-III
4. Law of Contract Mains Questions Series Part-IV
5. Law of Contract Mains Questions Series Part-V
6. Law of Contract Mains Questions Series Part-VI
7. Law of Contract Mains Questions Series Part-VII
8. Law of Contract Mains Questions Series Part-VIII
9. Law of Contract Mains Questions Series Part-IX
10. Law of Contract Mains Questions Series Part-X