Kanhu Charan Sahoo
Sahil Kumar Barik
Chapter- Offer And Acceptance(Business Law)
With Cases And Examples
Meaning of Acceptance
Who can accept
Rules of Acceptance
When the person to whom the offer is made signifies
his/her assent thereto, the offer is said to be accepted .
Section 2(b) of Indian ConractAct1872
Example : A says to B that he wants to sell his car for
Rs.1,00,000.B says to A in reply that he is prepared to buy his
car for 1,00,000 .Here B has accepted the proposal of A .
An offer can be accepted only by the person to
whom it is made . Acceptance by any other person
is not a valid acceptance .
If an offer is made by A to B, only B can accept or
reject the offer . But if it is a general offer, then
anybody can accept it .
Case – Boulton Vs. Jones
1. Acceptance Must Be Absolute And Unconditional
The acceptance ,to be binding , must be absolute and
unqualified .Qualified acceptance is not a contractual
Example – A proposes to sell his watch to B for 1000, to which
B says that he is prepared to pay only 800 for it .When a counter
offer is made ,the original offer is no more valid ,and until the
counter offer is accepted by the original offerer there can be no
If the acceptance of offer is not communicated to the
person making the offer ,the acceptance is not valid in
terms of law .
Case –Brogdon vs. Metropolitian Rail Company
A draft agreement relating to the supply of coal was sent to
the manager of the company for his approval .the manager
wrote the word ‘Approved’ and put the draft in his drawer
intending to send it to the company’s solicitor for a formal
agreement to be drawn up .the document remained in the
drawer by oversight ,and the court ruled that there did not
exist a contract since the acceptance was not communicated
to the offeror .
According to Section 7(2) of the Act ,if the person making
the offer has prescribed a method for its acceptance ,the
acceptance must be by that method .
For Example : If the proposer wants the acceptance to be
communicated by telegram,it must be done
telegraphically.If the manner of acceptance is not
prescribed ,the acceptance should be in an appropriate
The proposer needs to be informed if the offer made by
him is accepted, but he cannot insist on him being
ionformed of its non-acceptance .
For Example : A writes to B that he wants to sell his car to him
for 1,00,000 ,and if he (A) does not get reply from B by return
post, he would presume that B has agreed to buy the car .The
proposer cannot prescribe the method of refusal .
For Example : If A offers to sell 100 quintals of sugar to
B at 1000 per quintals ,and B writes back that he is
prepared to buy sugar only at 750 per quintal, B has
rejected A’s proposal ,and if B sends another Telegram
saying that he is prepared to buy at 1000 per quintal ,A is
not bound by it because ,A’s original offer has been
rejected by B .Technically ,the second communication
from B to A is a new proposal from B .
Express acceptance may be written or by word of mouth
whereas implied acceptance could be reflected by the
action or behavior of the person accepting the offer .
For Example : When a passenger boards a bus to go to a
particular place for a fixed fare to be charged by the bus
company ,it is a implied acceptance of the company’s offer
which is symbolised by the passenger’s action in boarding the
Acceptance can be given only by the person to whom the
proposal is made . If a person does not have a knowledge
of the proposal ,obviously has not been made to him and
he cannot give his acceptance as such .
When the offer comes to the knowledge of acceptor ,It is
said to be complete .
This is true to a specific proposal which can only
accepted or not accepted by the person to whom it is
made .However, a general proposal which is made to the
public at large can be accepted by any person who has a
knowledge of the proposal .
If the person making the offer has set a limit for its
acceptance , the offer must be accepted within that time.
If no time limit has been set ,the offer must be accepted
within a reasonable time .
For Example : A offers to sell his scooter to B for Rs.10,000
and wants B’s acceptance with in a week ,but did not receive
any response from B . B sends his acceptance on the eighth day
,In such circumstances ,the proposal has lapsed ,and B cannot
hold A answerable for his offer .
Mere mental acceptance which is not expressed in words
or in writing is not recognized as acceptance from legal
In other words , there must not only be a desire to accept,
but the desire must be expressed in words /oral/written .
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