What is Acceptance under Indian Contract Act, 1872
An offer is only considered full, in accordance with the Indian Contract Act, 1872, if it is accepted by the party or parties to whom it has been made. Let's clarify it with acceptance definitions, guidelines, circumstances, and examples.
An offer is only considered full, in accordance with the Indian Contract Act, 1872, if it is accepted by the party or parties to whom it has been made. Let's clarify it with acceptance definitions, guidelines, circumstances, and examples.
An offer is only considered full, in accordance with the Indian Contract Act, 1872, if it is accepted by the party or parties to whom it has been made. Let's clarify it with acceptance definitions, guidelines, circumstances, and examples.
Meaning of Acceptance
Acceptance is described as "When the person to whom the proposal has been made signifies his assent thereto, the offer is said to be accepted" in Section 2(b) of the Indian Contract Act 1872. Therefore, if approved, the proposal turns into a promise.
An offer is deemed accepted when the offeree, or the person to whom it is made, unconditionally consents to the offer made to him by the offeror. For an offer to be deemed full and turn into a promise, acceptance is necessary. Let me demonstrate the same for you.
Example A offers to pay B 50 lakh to purchase his house. B accepts this proposal. We refer to this as accepting the offer.
Before it is accepted, an offer makes no legal commitments between the parties; nevertheless, if it is accepted, it becomes an irreversible guarantee. This implies that the parties involved have legal responsibilities to each other about the offer made, as soon as the offeree accepts it. Acceptance cannot be withheld or retracted after it has been expressed. The offer, however, is subject to retraction prior to acceptance.
Bill acceptances come in two flavors: qualified acceptance and general acceptance. Absolute acceptance is used to describe broad acceptance that is unqualified and unconditional.
Surrender that is accepted unconditionally is called general acceptance. When someone agrees to pay a certain sum in full and without conditions, it's known as a general acceptance. This is a typical acceptance form unless there are other arrangements established for payment.
An acceptance has to be wide in order to be considered a general rule. An instrument is qualified when someone accepts it by attaching a requirement.
Types of Acceptance
Declared Acceptance
An offer is deemed to have been expressed when it is accepted verbally or in writing by the offeree.
When some drawers accept the transaction but not all of them do, this is referred to as acceptance by some. The bill is accepted for installment payments if the drawee consents to pay it in installments. At the beginning of the contract, this needs to be made very explicit.
The agreement must specify the condition of acceptance in great detail and make it instantly evident. Let's say that during acceptance, a drawee wishes to provide a qualification. If so, it has to be done so that the owner of the instrument knows what was approved and under what circumstances.
Example: B receives an oral offer from A to purchase his house for 50 lakh in person. B emails A to let him know that he accepts the offer. This is a declaration of acceptance.
Inferred Acceptance
Implied acceptance refers to an acceptance that is inferred from the offeree's actions, conduct, or other mannerisms.
Example: A purchases a few items from the grocery store. This is an implicit agreement on A's part to pay the amount the supermarket is requesting for the goods.
Acceptance Under Conditions
Qualified acceptance is another name for conditional acceptance. In this instance, the offeree consents to accept the offer only inasmuch as certain modifications are made to its terms and conditions. This acceptance now becomes a counteroffer, which in order to become a promise, the offeror must accept it.
Example: If the work is finished by the deadline, A agrees to pay B for the renovations to his house.
Guidelines for Appropriate Acceptance
Acceptance is Exclusive to the Offeree.
An offer can only be accepted by the individual to whom it has been made. The meaning of self-acceptance is that the offeree's acceptance alone is deemed legitimate. Without the offeree's knowledge, a third party cannot accept the offer. The acceptance is regarded as legitimate if the offeree has given permission for an agent to accept on his behalf.
Powell v. Lee Case Law
In this instance, the plaintiff applied for the position of headmaster, and one of the administrators of the school falsely informed him that he had been hired. The managers later made the decision to assign someone else to the position. The plaintiff filed a lawsuit against the school alleging breach of contract, but the case was dismissed on the grounds that the manager lacked the necessary jurisdiction to grant acceptance.
Acceptance Has to Be Expressed
To constitute a legally enforceable contract, the offeror must always be informed when their offer is accepted. The offeree needs to be informed that he has been made an offer before accepting it. It is impossible to express acceptance without being aware of the offer. If unambiguous communication of the acceptance is necessary, the intention to grant it is deemed invalid.
For instance: B receives an offer letter from A to purchase his home for 50 lakh. B does not return the letter, but she does sign the offer. Acceptance in this instance has not been made known. It is therefore invalid.
Acceptance Has to Be Made in the Specified Way
Acceptance must be made in the way provided in the offer, as per the guidelines. Acceptance must be made in a fair way that is utilized in the regular course of business if no specific mode has been stated. Silence is not regarded as an accepted form of communication when a specific method of acceptance is not mentioned.
Complete and unequivocal acceptance that is unqualified and total is required. Since conditional acceptance would be a counteroffer that would void the original offer, it is not possible. Let's examine an illustration. A offers to sell B his cycle for $2,000, which B accepts. B offers to buy it if A sells it for $1500. This is a counteroffer, not an indication that the offer has been accepted.
It must be expressed normally and reasonably, that is, as it would be in the regular course of business, if no such regulated form is prescribed. It also needs to be stated in a particular manner. Another way to show implied acceptance is via actions, behaviors, or other ways.
However, silence is not seen by the law as an indication of acceptance. Therefore, in the event that no answer is received, the offeror is