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A
contract is formed when an offer is accepted. The offeree's
willingness to be bound by the terms of the offer is known
as "acceptance". Section 2 (b) of the Contract Act defines
acceptance 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". Thus
acceptance is the assent or consent given to a proposal.
Acceptance
may be express or implied. It is express when it is communicated
by words, spoken or written or by doing some required act.
It is implied when it is gathered from the surrounding circumstances
or the conduct of the parties.
Essentials
of valid acceptance:
Acceptance
must be absolute and unconditional:
An acceptance, in order to be binding, must be absolute
and unconditional. It must correspond with all the terms
of the offer. Offer must be accepted in toto. Every offer
must be accepted as it is. For example; Sunil offers to
sell his site to Sridhar for Rs.100000. Sridhar accepts
to purchase it for Rs.80000. This acceptance is not valid.
It is a counter-offer.
Acceptance
must be communicated:
Acceptance must be communicated. Communication need not
be in writing or by word of mouth. It may also be implied
from the conduct of the acceptor. Mere desire to accept
a proposal is not acceptance. Uncommunicated or mental acceptance
is not a valid acceptance. The person who has authority
to accept should communicate acceptance.
Acceptance
must be in the mode prescribed:
If the offeror prescribes the mode or manner of acceptance,
the acceptance must be made in accordance with the mode
prescribed. For example, if the offeror says "acceptance
to be sent by email", the offeree must send an email. If
the acceptance is not made in the mode prescribed, the offeror
may within a reasonable time after the acceptance is communicated
to him, insist that the acceptance must be made in the prescribed
mode. But if he does not inform the offeree as to this effect,
he is deemed to have accepted the acceptance. If no mode
is prescribed by the offeror, the acceptance must be made
according to some usual and reasonable mode.
Acceptance
must be given within a reasonable time:
If the offeror has prescribed a time within which offer
must be accepted, it must be accepted within the prescribed
time. If no time is prescribed for acceptance, the offer
must be accepted within a reasonable time. Otherwise, the
proposal will lapse. What is reasonable time depends upon
the nature of the subject matter of the offer.
Acceptance
must be given only by the offeree:
An offer made to a particular person can be accepted by
him alone. If any other person accepts it, there is no valid
acceptance. An offer made to a class of persons can be accepted
by any member of that class. Any offer made to the world
at large may be accepted by any person who had the knowledge
of such an offer.
Acceptance
must be after an offer:
There can be no acceptance without an offer. The acceptor
must be aware of the proposal at the time of acceptance.
Thus, acceptance must succeed the offer. In other words,
acceptance should follow the offer and not precede it.
Acceptance
must be given before the offer lapses or its revocation:
Offer must exist at the time of acceptance. If an offer
had already lapsed or been revoked, subsequent acceptance
will be of no effect.
An
offer once rejected cannot be accepted again unless a fresh
offer is made. Under English law acceptance is irrevocable.
But under Indian law acceptance is revocable.
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