Acceptance

• Sec 2(b) “When the person to whom the proposal is

made signifies his assent thereto, the proposal is said to be accepted”.

• Manifestation by the offerree of his assent to the terms of the offer.

Legal Rules Regarding a Valid Acceptance

1. Acceptance must be given by the person to whom the offer is made.

• The rule of law is clear that “if you propose to make a contract with A, then B cant substitute himself for A without your consent”.

Legal Rules Regarding a Valid Acceptance

2. Acceptance must be absolute and unqualified. (sec 7(1)

• Acceptance of all the terms of the offer.• Even a slightest deviation is not allowed.

Legal Rules Regarding Valid Acceptance

3. Acceptance must be expressed in some usual and reasonable manner, unless the proposal prescribes the manner in which it is to be accepted. (sec7(2)

• Mental acceptance ineffectual.• Example: (Brogden Vs Metropolitan Co)

Legal Rules Regarding a Valid Acceptance

4. Acceptance must be communicated to the acceptor.

• Must not only be made by the offeree but must also be communicated by, or with the authority of the offeree/acceptor.

• Example: Powell vs Lee

Legal Rules Regarding a Valid Acceptance

4. Acceptance must be given within a reasonable time and before the offer lapses/revoked.

• Must be given within the specified time limit, if any and within a reasonable time, if no time is stipulated.

• Example:- Ramsgate Victoria Hotel Co Vs Montifiore

Legal Rules Regarding a Valid Acceptance

6. Acceptance must succeed the offer.

• Must be given after receiving the offer.• Example:- allotment of shares previous

to application invalid

Legal Rules Regarding a Valid Acceptance

7. Rejected offers can be accepted only, if renewed.

Communication of Offer, Acceptance and Revocation (sec 4

& 5)1. Communication of an offer:- • Is complete when it comes to the

knowledge of the person to whom it is made.

2. Communication of an Acceptance:-• (a) as against the proposer, when it is

put into a course o transmission to him, (b) as against the acceptor, when it comes to the knowledge of the proposer.

Communication of Revocation

3. Communication of a revocation,• Is complete; (a) as against the person

who makes it, when it is put into course of transmission to the person to whom its is made, (b) as against the person to whom it is made, when it comes to his knowledge.