What is Acceptance of Proposal? According to the Contract Act, “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. From the above definition, we find that acceptance of proposal means the assent of the proposee in the same sense as required by the proposer in the offer.
It means when the offeree accepts the proposal with its all terms and conditions.
See Also: What is Revocation of Proposal
It is said that proposal has been accepted and when proposal accepted now it becomes a promise and proposer cannot now cancellation his proposal.
Essentials of a Valid Acceptance
The following are the legal rules (essentials) of a valid acceptance:
Acceptance must be by the offeree
The proposal can only be accepted by the person to whom it is made (offeree) and not by any other person.
If it is accepted by any other person on behalf of the original proposed, there cannot be a promise and the parties be valid.
Acceptance must be absolute and unqualified
Acceptance of the proposal must be absolute and unqualified by the offeree. There cannot be the slightest deviation from the term of the offer for the valid acceptances.
So, it is compulsory for the valid acceptances that the offeree must accept the proposal with all its terms and conditions.
Illustration: A offers to sell his motorcycle to B for $20,000 on a cash basis. B accepts the proposal and pays $10,000 down and promises to pay the balance of $10,000 at evening.
There cannot be a contract because the acceptance is not absolute and unqualified.
Acceptance must be in prescribed manner
According to section 7 of The Contract Act, the offeree is bound to accept the proposal with a manner prescribed by the offerer for the acceptance of the proposal.
See Also: What is Proposal | Different Types of Proposal
If the offeree deviates from the manner prescribed by the offerer for the acceptance of the proposal. The proposer has a right not to accept the acceptance and there cannot be a contract.
Illustration: A offers to sell 100 units of his product for $20 per unit to B and requires that acceptance must be sent through a telephonic message.
But B sends a letter for the acceptance of the Proposal. A can refuse to accept the acceptance by informing B that acceptance is not according to prescribed mode.
Acceptance must be communicated to the offerer
Necessary for the valid acceptances that it must be communicated by the Offeree to the offerer.
If the offeree has the intention to accept the proposal but he fails to communicate it to the offerer, there cannot be an acceptance and therefore, there cannot be a contract.
Illustration: A offers to sell his car to B for $10000 B intends to accept the proposal writes a letter of acceptance of the Proposal but forgets to dispatch it.
A sell the car to C, B has no claim against A because his acceptances has not been communicated to A.
Acceptance must be given within a reasonable time
The acceptance must be given within the time prescribed by the offerer and if no time prescribed by the offerer for the acceptance of the proposal, the proposal must be accepted within a reasonable time.
The reasonable time is a question of fact, depends on each particular case.
Illustration: The application for the allotment of shares was given on June 8th. The applicant was informed on November 23 that’ shares were allotted to him. He refused to accept them.
In a legal proceeding, it was held that due to the delay in notification of acceptances: time applicant is not bound to purchase shares (Ramsgate Victoria Hotel” ‘Co Vs Montefiore 1866)
Acceptance may be expressed or implied
Whether the acceptance of the proposal is expressed or implied, it depends on the w nature of the proposal.
The acceptance is expressed when it is given words spoken or written and it is implied when it is conveyed by conduct or behavior of the acceptor. In both cases the acceptances valid.
See Also: What is Cancellation of Proposal
Illustration: A offers to sell his watch to B for $2000 words spoken and B also accepts the proposal by spoken words.
It will be expressed proposal and expressed acceptance arid contract will be valid. 2. A opens a shop, B hands over $20 to A and picks a packet biscuit. It is an implied offer an implied acceptance.
Acceptance must follow the offer
The acceptances always given after the proposal is made. The acceptance is not possible before the offer is received.
Therefore, a person cannot be allotted this share of the company until he applied for them.
Illustration: A offers to pay $5000 to a person who provides information about his lost horse. B ignorant of A proposal provided information to A about his lost horse.
But later on, he known about A offer B is not entitled to get the reward of $5000 because cannot be made before the proposal.
