Corporate business and law.
“Essentials of valid acceptance”
Q1 Under the provisions of the Contract Act, 1872 list the
essentials of a valid acceptance.
Answer:
Under the Contract Act, 1872 essentials of a valid acceptance
are as follows:
1) acceptance must be absolute and unqualified.
Examples :-
Sara offers to sell his watch to hamna for Rs.500, and hamna replies
that she can buy it only for Rs.300, there is a material variation in the
acceptance. Therefore, there is no agreement as the acceptance is
not absolute and unconditional.
A offers to sell his cupboard to B for Rs: Two lakhs. B accepts the
offer And promises to pay the price in five equal installments. In this
case, There is a variation in the terms of the offer. Thus original offer
is rejected and cease to exist. Actually, It is counter-offer by B.
2) It must be communicated either in writing or by word of
mouth or by performance of some act.
Example :- Ali proposes by letter to purchase Babar’s bicycle .
Babar expresses his intention to sell it to Ali but does not send
a reply to him. The bicycle is sold to Carrar despite Babar’s
intention. Ali has no legal remedy against Babar.
3) Acceptance must be in the prescribed mode/reasonable
mode.
Example :- Areeb makes an offer to Bilal and writes “if you accept
the offer send your acceptance by telegram.” Bilal sends his
acceptance by registered post. It is not a valid acceptance. But Areeb
should inform Bilal that it is rejected because it not in the prescribed
manner.
4) The acceptance must be given within the time specified or
within a reasonable time when no time is specified.
Example:- X applied for the shares of Pepsi Co on 6 th June. But
the Company did not intimate about allotment until November. X
refused to take shares. Held, the offer Was lapsed by unreasonable
delay.
5) Mere silence is not acceptance. It cannot be in the form of
a negative confirmation. The acceptor should expressly
accept the offer.
Example:- Farah offered to buy Sara’s cat for 3000 rupees saying:
“If I hear no more about it I shall consider the cat is mine at 3000
rupees” .Sara did not write to ‘Farah ‘ at all. There’s no contract
because mere silence of Sara is not acceptance.
6) Acceptance must be given only by that person to whom
the offer has been made.
Example:- Abid Sold his business to Abdullah without disclosing
the fact to his customers. Javaid sent an order for the supply of
goods to Abid by name. Abdullah received the order and executed
the same. It was held that there was no contract between Abdullah
and Javaid because Javaid never made any offer to Abdullah .
7) The acceptor must be aware of the proposal at the time of
acceptance of the proposal.
Example:-
A offers his house to B, B must be aware of the everything that is there in
the proposal before he accepts A’s offer.
8) The acceptance must be given before the offer lapses or is
withdrawn.
Example:- Arif offers his house Shoaib for RS. 10000. Before
Shoaib accepted the offer, Arif withdrew his offer by informing
Shoaib . There will be no Contract as the offer has been revoked
before its a acceptance.