To constitute a contract there must be an offer and acceptance. Acceptance is the second stage of formation of a Contract. Section 2(b) of the Indian Contract Act, defines "Acceptance"
1) Meaning and Definition of Acceptance :
Section 2(b) of the Indian Contract Act defines Acceptance as "when a person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted. A proposal, when a accepted, becomes a promise.
The person making the proposal is called the “promisor”, and the person accepting the proposal is called “promisee”,
2) Essential Elements of a Valid Acceptance :
(1) Acceptance must be Communicated
(2) An acceptance must be absolute and unqualified
(3) Reasonable Time
(4) Acceptance should be expressed in some usual and and reasonable manner, unless the proposal prescribes the manner of acceptance.
(5) Acceptance must be made before Revocation of offer.
(1) Acceptance must be Communicated :
To constitute a Valid Contract, the acceptance must be communicated and moreover, such communication should be made to offeror. mere intention or mental determination to accept on the part of the offeree is no acceptance.
(1) Acceptance must be Communicated :
To constitute a Valid Contract, the acceptance must be communicated and moreover, such communication should be made to offeror. mere intention or mental determination to accept on the part of the offeree is no acceptance.
(2) Acceptance should be absolute and unqualified :
According to Section 7 of the Indian Contract Act 1872, acceptance must be absolute and unqualified, means without any deviation of any kind in the proposal or without any condition. An acceptance gives rise to a binding contract only when it is unqualified and coincides in its terms with those of the offer.
(3) Reasonable Time :
To be legally effective acceptance must be given within the specified time limit, and if no time is stipulated, acceptance must be given within a reasonable time. because an offer cannot be kept open indefinitely.
(4) Acceptance should be expressed in some usual and and reasonable manner, unless the proposal prescribes the manner of acceptance -
The acceptance should be expressed in usual manner or as per mode prescribed. According to Section 7(2) of the Indian Contract Act, 1872 the acceptance must be expressed in some usual and reasonable manner unless the proposal prescribed the manner in which it is to be accepted.
(5) Acceptance must be made before Revocation of offer -
Section 5 of the of the Indian Contract Act says that Offer can revoked at any time before the communication of acceptance is posted but not afterwords. Therefore acceptance must be made before such revocation.
The acceptance should be expressed in usual manner or as per mode prescribed. According to Section 7(2) of the Indian Contract Act, 1872 the acceptance must be expressed in some usual and reasonable manner unless the proposal prescribed the manner in which it is to be accepted.
(5) Acceptance must be made before Revocation of offer -
Section 5 of the of the Indian Contract Act says that Offer can revoked at any time before the communication of acceptance is posted but not afterwords. Therefore acceptance must be made before such revocation.
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