Acceptance and its essentials

this ppt is all about acceptance and its essentials in business law.

1. Acceptance & its Essentials Presented By: Parul Vashisth Mansee Rai

2. Meaning of 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) e of the Indian Contract Act, 1872, “A proposal is said to be accepted when the person to whom the proposal is made signifies his accent thereto. A proposal when accepted becomes a promise.” Example: X offer to sell his car for Rs.1,00,000. Y agrees to buy the car for Rs.1,00,000. Y,s act is an acceptance of X,s offer.

3. How to make acceptance Express Acceptance: An express acceptance is one which is made by words spoken or written. Implied Acceptance: An implied acceptance is one which is made otherwise than in words. In other words, it is inferred from the conduct of the circumstances of the particular case.

4. Essentials of Valid Acceptance

5. Absolute & Unqualified According to Section 7(1) of the Indian Contract Act, 1872, “In order to covert 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 or condition. A conditional and qualified acceptance amounts to marking of a counter offer which puts an end to the original offer and it cannot be revived by subsequent acceptance .

6. Manner According to Section 7(2) of the Indian Contract Act, 1872, the acceptance of an offer must be given in the prescribed manner. If the offer is not accepted in the prescribed manner, the offerer may approve or reject such acceptance.

7. Communication The acceptance is complete only when it has been communicated to the offerer. A mere mental determination to accept is no acceptance in the eyes of the law unless there is some external manifestation of that determination by words or conduct.( Brogden v. Metropolitian Railway co.).

8. By Whom Acceptance must be communicated by the offeree himself or by the person who has the authority to accept. In other words, if acceptance is communicated by an unauthorized person, it will not give rise to legal relations.( Poell v. Lee).

9. 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. ( Felthouse v. Bindley).

10. Time limit The acceptance must be given within the prescribed (if any) or within a reasonable time. What is reasonable time depends upon the facts and circumstances of the case. ( Ramsgate Victoria Hotel Co. v. Montefiore).

11. Before lapse of offer The acceptance must be given before the offer lapses or is withdrawn. In other words, if an acceptance is made after the lapse or withdrawal of the offer, it will not give rise to legal relations.

12. Thank You…