Essentials or rules relating to acceptance

by • 28/05/2012 • B.com part 2 Business LawComments (0)456

Q2. What is acceptance? Describe the important conditions of acceptance.

Or

Discuss the essentials or rules relating to acceptance.

Or

How can an offer be acceptable? State rules relating to the acceptance of offer.

 

ACCEPTANCE

Acceptance means:

 

“Giving consent to the offer.”

 

It is an expression by the offeree of his willingness to be bound by the terms of the offer. According to section 2 (b) of the Contract Act,1872:

“A proposal is said to be accepted when the person to whom the proposal is made signifies his assent thereto. A proposal when accepted becomes a promise.”

 

Example:

X offers to sell his car to Y for Rs.1, 00,000. Y agrees to buy the car for Rs.100, 000. Y’s act is an acceptance of X’s offer.

 

ESSENTIALS OR RULES RELATING TO VALID ACCEPTANCE

 

Following are the rules relating to acceptance.

 

1-      ABSOLUTE AND UNQUALIFIED

 

According to Section 7 (1) of the Contract Act, 1872:

“In order to convert a proposal into a promise, the acceptance must be absolute and unqualified.”

 

It means that an offer must be accepted as it is without any reservation, variation. A qualified and conditional acceptance amounts to marking of a counter offer which puts an end to the original offer and it cannot be revived by subsequent acceptance.

 

Example:

X offered to sell his car for Rs.100, 000 to Y at a certain price. Y accepted the offer for one plot. It was help that the acceptance was not valid because it was not for the whole of the offer.

 

2-      ACCEPTANCE BY AUTHOIRZED PERSON (BY WHOM)

Acceptance must be communicated by the offerer himself or by a person who has the authority to accept.

3-      TO WHOM

Acceptance must be communicated to the offerer himself. In other words, if acceptance is communicated to an unauthorized person, it will not give rise to legal relation.

 

4-      REASONABLE TIME OR TIME LIMIT

The acceptance must be given within the time prescribed (if any) or within a reasonable time (if no time is prescribed). What is reasonable time depends upon the facts and circumstances of the case.

 

5-      ACCEPTANCE AFTER COMMUNICATION:

Before the communication of offer, acceptance cannot be given. Acceptance cannot be valid if it is given before the communication of offer.

 

6-      INTENTION MUST BE SHOWN:

Acceptance must show the intention of the acceptor to accept the offer. Intention to accept the offer can be shown by words, or by conduct. Silence does not show acceptance.

 

7-      COMPLETE ACCEPTANCE:

All the term and conditions of the offer should be accepted by the acceptor. If any part of the offer is rejected then acceptance cannot be called valid.

 

8-      CASE OF REFUSAL:

In once the acceptor rejects the offer, then acceptor can accept it, unless the proposer renews it. Renewal is necessary for a valid acceptance.

 

9-      ACCPETANCE INFORMED:

When acceptance comes to the knowledge of the proposer it becomes irrevocable and it becomes a valid acceptance.

 

10-  ACCORDING TO ACT:

Acceptor must accept the proposal according the requirement of the act. If he ignores the requirements of act then it is not valid acceptance.

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