definition of acceptance:
Section 2(b) defines acceptance as, "when the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted.
Example:
A offers to sell his car to G for Rs 10 lac. G accepted the offer. this is an acceptance.
essentials of valid acceptance:
the following are legal essentials or rules of a valid acceptance. these are given below one by one,
1- Acceptance by offeree:
an offer can be accepted only by the person to whom it is made. it can not be accepted by anouther person without theconsent of offeror. when an offer is made to a particular group, it can be accepted by any member of that group. if the offer is made to genral public, it can be accepted by any person who has knowledge of that offer.
Examples:
a- T offered to sell his house to U. G who was aware of such offer said that he is ready to buy T,s house. there is no contract with G, becouse the offer is made only to U, and not to G.
b- M sold his business to N whith out informing his customers. O sent an order for the supply of goods to M by name. N recieved the order and supplied the goods. it was held that there was no contract becouse O never made any offer to N. (Boulton vs. Jones).
2- absolut and unconditional:
for a valid agreement, the acceptance must be absolute and unconditional. if the offeree imposes any condition in his acceptance, it is not a valid acceptance but a counter offer. there is no contract until the counter offer is accepted by the original offeror.
Examples:
a- M offers to sell his watch to N for Rs 2500. N replies that he can buy it for Rs 2000. there is no acceptance on the part of N.
b- A offered to sell land to B for Rs 400,000. B accepted and enclosed 350,000 with a promise to pay the balance by monthly intalments of 50,000. Held, there was no contract as the acceptance was conditional. (Neaie vs. Merret).
3- Prescribed manner:
if the offeror prescribes a particular manner of acceptance, it must be given according to that particular manner. if acceptance is not made according to the prescribed manner, the offeror may reject it. if no particular manner is prescribed in the offer then acceptance should be made in a reasonable manner.
Examples:
a- A offers to B and asks to accept the offer by telegram. B sends his acceptance by post. it is not a valid acceptance.
b- M offered to buy flour from N and requested to send acceptance by messenger who had brought the order. N sents his acceptance by post thinking that this would reach M earlier than messenger. Held, M was not bound by the acceptance. (Eliason vs Henshaw).
4- Communication with offeror:
the offeree or his agent must communicate the acceptance to the offeror in a clear manner. showing the intention to accept an offer is not a valid acceptance. if the offeree does not accept the offer, no contract is formed. when offeree accepts an offer but fails to clearly communicate, it is not considered an acceptance.
examples:
a- M offers by letter to purchaise B,s house. B expresses his intention to sell it but does not reply. B sells to N. M has no legal remedy against B.
b- the manager of a railway company received a draft agreement relating to supply of coal. the manager approved and put the agrement in the drawer and forgot all about it. Held, there was no contract, as the other party was not informed. (Brodegen vs Metropolitan Railway Co).
5- Express or implied:
when a acceptance is given by words spoken or written, it is called express acceptance. when it is given by conduct or acution it is called implied acceptance. it the offer is made to the public, the contract arises when any person accepts it by words or conduct.
examples:
a- M offered by letter to sell cycle to N for Rs 7,000. N accepts his offer and sent a letter of acceptance. it is an express acceptance.
b- A widow promised to give some property to her niece if she stayed whith her. the niece stayed in her residence till her death. Held, the niece was entitled to the property. (V.Raw.vs A. Rao).
6- Acceptance after offer:
Acceptance must be given after receiving an offer. it can not precede the offer. if acceptance is made without having knowledge of the offer; there is no contract becouse no acceptance can be made without an offer.
examples:
a- M offered a reward for anyone who finds hos lost bag. N in ignorance of the offer; finds and returns the bag. N can not claim the reward.
b- A company alotted shares to a person who had not applied for them. Subsequently he applied for them. Held, that the previous allotment was invalid.
7- Reasonable time:
if offeror specifies a time period for acceptance in his offer, the offeree must give acceptance with in that specified time. if no time is specified, the acceptace must be given with in a reasonable time. the reasonable time depends upon the circumstances of each case.
example:
M applied for shares of company in janwary but allottement was made in august. M refused to accept the shares. it was held that M could refuse to take shares becouse offer has lapsed after the expiry of a reasonable time. (Ramsgate Victoria Hotel Co.vs. Montefiore)