Acceptance Under Indian Contract Act

Acceptance is a final and unqualified expression of assent to the terms of an offer. The objective test of agreement applies to an acceptance no less than to an offer. On this test, a mere acknowledgement of an offer would not be an acceptance.

If a contract is to be made, the intention of the offeree to accept must be expressed without leaving room for doubt as t the fact of acceptance, or as to the coincidence of the terms of the acceptance with those of the offer.

Section 2(b)- when the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted.

Thus acceptance is the assent given to a proposal, and it has the effect of converting the proposal into promise.

COMMUNICATION OF ACCEPTANCE.

1. 1. Acceptance by external manifestation or overt act-

The definition clearly requires that the assent should be signified. It may be signified or expressed by an act or omission by which the party accepting intends to communicate his assent or which has the effect of communicating it.

An agreement does not result from a mere state of mind. Intent to accept an offer or even a mental resolve to accept an offer does not give rise to a contract. There must be some external manifestation of that intent by speech, writing or other act.

Brogden Vs metropolitan Railway Co.

B was supply the coal to a railway company without any formal agreement. B suggested that a formal agreement should be drawn up. The agent of both parties mat and draft an agreement. There were some blank which sent to B's approval. The agent of the company put that agreement in the draw's of B, and it kept there. B kept up his supply of coals but on the new terms. A dispute having arisen B refused t be bound by the agreement.

The conduct of the company's agent in keeping the agreement in his drawer was an evidence of the fact that he had mentally accepted it. But had not express his mental determination and retention of the agreement was not a sufficient acceptance.

It was held that- when the course of dealing was accepted and acted upon in the supply of coal it means the acceptance is there.

1. 2. Acceptance by Conduct- Conduct is an action in terms of the offer. All cases of general offers, which are a kind of unilateral contract demand some act in return for the promise to pay. Section 8 provides that Performance of all conditions of a proposal of the acceptance of any consideration for a reciprocal promise which may be offered with a proposal is an acceptance of the proposal.

Hindustan Cooperative Insurance Company Vs Shyan Sunder-

Brief Fact- After an oral understanding to insure and the completion of medical examination and , the company informed the proposer that if he submitted the proposal form and half yearly premium, his proposal would be accepted.

The proposer submitted the proposal form and the half yearly premium cheque.

The company encash the cheque but not replied to him.

Calcutta High Court held that- Mere mental assent to an offer does not conclude a contract. The offeror may however, indicate the mode of communicating acceptance either expressly or by implication. The encash of premium cheque shows the act of acceptance.

1. 3. Communication to offeror himself- Acceptance must be communicated to the offeror himself. A communication to any other person is as ineffectual as if no communications has been made.

Felthouse V Bindley- court held that-acceptance of an offer made should be communicated to the offeror himself or to the person he has authorized to receive the acceptance.  A communication to a stranger, will not do

1. Communication to acceptor himself- The communication of acceptance should be from a person who has the authority to accept it. Information received by a unauthorized person is ineffective.
2. When Communication of Acceptance not necessary- In case of general offer to public at large, acceptance is not necessary.

Carlill Vs Carbolic Smoke Ball Co

Brief Facts- Carbolic some ball co, offered by advertisement to pay £ 100 to any one who suffered by influenza after having used the ball according to printed direction. It was added that £ 1000 deposited in the Alliance Bank showing our sincerity in the matter.

The plaintiff used the smoke ball according to the direction but she nevertheless subsequently suffered from influenza. She was held liable to entailed for the amount.

But the co refused to give the amount to Carlill, by saying that-

• There was no intention to enter into a legal relation as it was simply a puffing advertisement.
• It was not made for one person in particular, and the plaintiff had not expressed his intention to accept it.

Judgment- it was the general offer, and the sanity of the contract was amount deposited in the bank.

1. 6. Mode of Communication –Acceptance must be in a prescribed Manner- Acceptance has to be made in a manner prescribed or indicated by the offeror. An acceptance given in any other manner may not be effective, particularly where the offeror clearly insists that the acceptance shall be made in the prescribed manner.
2. 7. Acceptance must be absolute- the acceptance must be absolute or unqualified, there should be no conditions attached to it.
3. 8. Provisional acceptance- Some time an acceptance made subject to final approval, this kind of acceptance is provisional acceptance, which does not bind either party until the final approval is given.

Revocation of Acceptance

A/c to English law an acceptance once made is irrevocable.

Anson- acceptance is to offer what a lighted match is to a train of gunpowder. Both do something which cannot be undone.

In Indian law- once the other hand, acceptance is generally revocable, before it reaches to the offeree.

Revocation-

Mode of revocation Section 6-

1. 1. Communication of notice of revocation by the proposer to the other party.
2. 2. Laps of time prescribed in such proposal, if time is not prescribed then the laps of the reasonable time, with out the communication of acceptance.
3. 3. Failure of the acceptor to fulfill the agreement conditions.
4. 4. Death or insanity of the proposer, which comes to the knowledge of acceptor before the acceptance of proposal