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Essentials of a Valid Acceptance
An offer is accepted by the person to whom it is made, and that person is known as the offeree. The acceptance is required to be made in the prescribed mode and within the specified or reasonable period of time in order to be a valid acceptance. Acceptance basically signifies the intention of the offeree or promisee to enter into the contract for the performance of the act that was contemplated in the offer.
Additionally, a valid acceptance requires the completion of communication with the person to whom it is made.
What is Meaning of Acceptance?
Acceptance is defined under Section 2(b) of the Indian Contract Act, 1872 which is as follows −
“When the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted. A proposal, when accepted, becomes a promise.”
Thus, acceptance can only be made by the Promisee to whom the offer was made and the offer needs to be accepted in its entirety because any deviation from the original offer or any changes would itself result in the formation of a new offer. Hence, acceptance of an offer results in a promise, which is an agreement enforceable by law if duly communicated as both the parties become bound to it.
Essentials of an Acceptance to be Valid
The following are the essentials of valid acceptance −
Unqualified Acceptance − The acceptance of the offer must be absolute and unqualified because consensus ad idem is essential for the formation of a contract. Hence, all the terms of the offer must be accepted in their entirety without any change or possibility of future negotiations.
Mode of Acceptance − Acceptance of an offer or proposal can either be express or implied, if not specified in the offer, or by the offeree. An acceptance is expressed when it is made either orally or in writing, and an acceptance is implied when it is evident from the conduct of the promisee.
Prescribed Mode − Section 7 of the Contract Act provides that if the proposal provides the manner of acceptance, then it must be made in that manner or mode only to be a valid acceptance. And if it is made in any other manner, then it would be valid only if the offeror does not object to it within a reasonable period of time. Although if the promisee or offeree does not make it in the prescribed manner despite objections from the promissor, then it would be an invalid and unenforceable acceptance.
Reasonable Time − The acceptance of an offer must be made either within the specified duration of time as indicated in the proposal or within a reasonable period of time; otherwise, the proposal is deemed to lapse. Thus, acceptance can only be made during the subsistence of the offer.
Silence cannot be an Acceptance − Silence can neither be a prescribed nor a standard form of acceptance, as it is not feasible to prove.
Communication − An acceptance of the offer must be communicated to the person who made the offer in order to be binding and complete in all aspects. Also, an offer can only be accepted by the offeree; however, the acceptance can be communicated either to the offeror or his or her specified agent. Additionally, the communication is complete as soon as it comes to the knowledge of the offeror, even if it is made to the wrong person.
Revocation − An acceptance of the offer can be revoked before it comes to the knowledge of the person who made the offer or to whom it was made, as the right of revocation extinguishes upon completion of communication of acceptance to the offeror.
Completion − An acceptance is complete when it comes to the knowledge of the person to whom it is made and the person who made the offer. Further, the completion of acceptance results in the formation of a contract and a legal relationship between the offeror and offere
Conclusion
Acceptance forms the most crucial stage in the formation and completion of a contract because it marks the initiation of legally enforceable claims, liabilities, and rights for both the promisee and the promissor concurrently. Further, though the offeree is not bound to accept the offer, once he makes the acceptance, he is bound by it, and once the acceptance comes to the knowledge of the offeree, he is also bound by it. Thus, mere mental acceptance does not constitute the legal relationship; rather, it is its expression in a standard form of communication that results in the contract.
Frequently Asked Questions
What is the difference between Acceptance of an offer and Communication of Acceptance?
When the offeree accepts the proposal in its entirety, it amounts to acceptance, and when he sends his acceptance to the offeror, it amounts to communication of acceptance. However, it becomes complete only when the offeror receives it.
What is the difference between Offeror, Offeree, Promisor, and Promisee
Offeror or Promisor is the person who makes the offer and Offeree or Promisee is the person who makes the acceptance of the offer made by the Offeror or Promisor.
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