Law

Acceptance “When the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted.”

Who can Accept the Offer? Acceptance of Particular Offer:This offer can be accepted by the person to whom it is Made or by any other but in Consent of offeror.

Acceptance of General Offer:When an offer is made to world at large any person to whom the offer is made.

Legal Rules Regarding A Valid Acceptance

1.Acceptance must be given only by the person to whom the offer is made. 2.Acceptance must be absolute and unqualified. 3. Acceptance must be expressed in prescribe manner or in some usual manner.

Legal Rules Regarding A Valid Acceptance (contd.)

4. It must be communicated by the acceptor. 5.Should be given in reasonable time. 6. Acceptance must succeed the offer. 7. Rejected offers can be accepted only if renewed.

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

An offer can be accepted only by the person or persons to whom it is made and with whom it imports an intention to contract. It cannot be accepted by another person without the consent of the offeror.

A Valid Acceptance

A sold his business to his manager B without disclosing the fact to his customer. C, a customer who had a running account with A, sent an order for supply of goods to A by name. B received the order and executed the same. C refused to pay the price. Verdict:- It was held that there is no contract between B and C and as such C never made order to B and hence is not liable to pay the price to B. (Boulton vs Jones)

2.Acceptance must be absolute and unqualified

In order to be legally effective it must be an absolute and unqualified acceptance of all the terms of the offer. Even the slightest deviation from the terms of the offer makes the acceptance invalid Such contracts are also termed as a counter offer in law.

A Valid Acceptance

(Routledge vs Grant) A made an offer to B to purchase a house with possession from 25th July. The offer was followed by an acceptance suggesting possession from 1st August. Held that there was no concluded contract.

3.Acceptance must be in a prescribed manner The acceptance of the offer should be in a manner prescribed in case no mode is prescribed, the acceptance must be communicated according to some usual and reasonable mode. No communication = No Acceptance.

A Valid Acceptance

The usual mode of Communicating Acceptance are:Express Acceptance. Implied Acceptance/ Tacit Acceptance

4. Acceptance must be communicated by the acceptor

For a acceptance to be valid, it must not only be made by the offeree but must also be communicated by, or with the authority of, the offeree (or acceptor) to the offeror.

A Valid Acceptance

(Powell vs Lee) P was a candidate for the post of Headmaster in a school. The managing committee of the school passed a resolution selecting him for the post. A, member of the managing committee, acting in his individual capacity, informed P that he had been selected but P received no other intimation. Subsequently the resolution was cancelled and P was not appointed to the post. P filed a suit against the Committee for breach of contract. The Court held that in the absence of an authorized communication from the Committee there was no binding contract.

5.Should be given in reasonable time

To be legally effective acceptance must be given within specified time limit, if any, and if no time is stipulated, acceptance must be given within a reasonable time because an offer cannot be kept open indefinitely.

6.Acceptance must succeed the offer

Acceptance must be given after receiving the offer. It should not precede the offer. Offer

Acceptance

7. Rejected offers can be accepted only if renewed Offer once rejected cannot be accepted again unless a fresh offer is made.

A Valid Acceptance

Offer Communication of

Acceptance Revocation

Communication of Offer, Acceptance, Revocation

An offer, its acceptance and their revocation (withdrawal) to be completed must be communicated. The rule for this are:-

 Communication of Offer:The communication of an offer is complete when it comes to the knowledge of the person to whom it is made.

Communication of Offer, Acceptance, Revocation

 Communication of an Acceptance:The communication of an acceptance is completed in two aspects:1. As against the proposer: It is completed when it is put in a course of transmission to him, so as to be out of power of the acceptor. 2. As against the acceptor:when it comes to the knowledge of the proposer.

Communication of Offer, Acceptance, Revocation

 Communication of an Revocation:Revocation means “taking back” “recalling” or “withdrawal”. 1. As against the person who makes it:When it is put into a course of transmission to the person to whom it is made, so as to be out of the power of the person who makes it. 2. As against the person to whom it is made:-

As against the person to whom it is made, when it comes to his knowledge.

Communication of an Revocation

 A revokes his offer by telegram. The revocation is complete as against A when the telegram is dispatched. It is complete as against B when B receive the telegram.  B revokes his acceptance by telegram, B’s revocation is complete as against B when the telegram is dispatched and as against A when it reaches him.

Communication of an Revocation

Revocation can be of Offer Acceptance

Time for Revocation Revocation of Proposal: A proposal/offer may be revoked at any time before the communication of its acceptance is completed as against the proposer but not afterwards.

 The letter revoking the offer must be

received by the acceptor before he (the acceptor) posts the letter of acceptance.

Time for Revocation of Proposal

Once the letter of acceptance is

dispatched the offer cannot be revoked irrespective to the fact that the proposer has received it or not.

The moment the letter of acceptance is posted, it is binding on the proposer.

Time for Revocation

Revocation of Acceptance:-

An acceptance may be revoked at any

time before its communication is completed as against the acceptor, but not afterwards.

Once the letter of acceptance reaches

the proposer, the acceptance cannot be revoked.

Contracts over the Telephone Contracting over the phone gives an instant communication of offer and acceptance as in the case of face to face contract. But the acceptor should make sure that his acceptance is heard properly and understood by the proposer.

Contracts over the Telephone

Offer

Acceptance

No No time time for for revocation revocation