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Acceptance and Legal Rules for Acceptance

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Section 2(b) states thatA proposal when the personto whom the proposal is made signifies his assent thereto the

proposal is said to be accepted.

An accepted proposal is called a promise or an agreement.

Acceptance

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Express- words spoken or written

Implied- accepted by conduct

Acceptance may be express or implied

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A lady invited her niece to stay with her in the same house and promised to settle on her immovable property.The niece stayed with her residence till the time of her death. Niece was held to be entitled to property because she has accepted the offer of the aunt by conduct i.e., by going to her house and staying with her as desired. (V. Rao v/s A. Rao)

Case

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An offer may be accepted by the person to whom it is made.

General offer- only the persons with the knowledge /notice of the offer can come forward and accept the offer.

Who may accept?

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1. Acceptance must be absolute and unqualified/ unconditional

2. Acceptance must be communicated to the offeror

3. Acceptance may be made within reasonable time

Essentials of valid acceptance

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4. Acceptance must be according to the mode prescribed.

5. The acceptor must be aware of the Proposal at the time of offer

6. Acceptance must be given before the offer lapses or before the offer is revoked

7. Acceptance can’t be implied from silence

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Acceptance of a proposal may sometimes be inferred from silence or inaction.

As a rule silence does not imply acceptance, but in the following cases silence may be indicative of assent to the proposal

Where the offeree having reasonable opportunity to reject the offered goods or services takes the benefit of them, it will amount to acceptance.

Case Kashi Prasad vs. Sajjadi Begum- Enhancement of rent not protested and tenants continued living after notice was served by the landlord

Effect of silence on acceptance

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Subject to contract or subject to approval by certain persons such as solicitors etc.No contract will arise till a formal contract is settled or consent of such person obtained.

Acceptance subject to contract

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When the contracting parties are face to face and negotiate in person, a contract comes in existence the movement the offeree gives his absolute and unqualified acceptance to the proposal made by the offeror. When the parties are at the distance and the offer and the acceptance and their revocation are made through post, i.e., by letter or telegram.

When parties are at a distance and the offer and acceptance are exchanged through post, rules contained in sec.4 & 5 apply

Communication of Offer, Acceptance & Revocation

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The communication of offer is complete when is comes to the knowledge of the person to whom is made/ offeree.

E.g., A Proposes, by a letter, to sell a house to B at a certain price. The letter is posted 10th July. It reaches B on 12th July. The communication of the offer is complete when B receives the letter, i.e., on 12th July.

Communication of an Offer Sec.4

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As against the proposer-when it is put into 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

E.g., in the above case, when B accepts A’s Proposal, by a letter sent by post on 13th instant. The letter reaches on 15th instant. The communication of acceptance is complete, as against A, when the letter is posted, i.e., on 13th, as against B, when the letter is received by A, i.e., on 15th. (Case of NT Rama Rao)

Communication of acceptance Sec.4

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As against the proposer• Communication is complete as soon as

a duly addressed letter of acceptance is put into the course of transmission.

• Whether the same reaches the proposer or not.

As against the acceptor• Communication is complete only when

the proposer has received the letter and learnt the contents thereof.

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THANK YOU

END OF PRESENTATION