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Acceptance Is To Offer

The document discusses the concept of acceptance in contract law, using the analogy of a lighted match and gunpowder to illustrate how acceptance irrevocably binds parties to a contract. It outlines the definitions of offer and acceptance as per the Indian Contract Act 1872, emphasizing that acceptance must be unconditional, communicated, and in the prescribed mode. Additionally, it highlights the rules regarding valid acceptance, including who can accept an offer and the implications of implied acceptance through conduct.

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Manjari Chandra
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80 views3 pages

Acceptance Is To Offer

The document discusses the concept of acceptance in contract law, using the analogy of a lighted match and gunpowder to illustrate how acceptance irrevocably binds parties to a contract. It outlines the definitions of offer and acceptance as per the Indian Contract Act 1872, emphasizing that acceptance must be unconditional, communicated, and in the prescribed mode. Additionally, it highlights the rules regarding valid acceptance, including who can accept an offer and the implications of implied acceptance through conduct.

Uploaded by

Manjari Chandra
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Acceptance

Acceptance is to an offer what a lighted match is to a barrel of gunpowder


The position is related to revocation of proposal or acceptance that has been described by Anson.
Upon analyzing this statement, it can be seen that gunpowder is the offer and lighted matchstick
is acceptance. If a lighted matchstick is placed or brought near a train of gun powder disaster or
explosion takes place which couldn’t be undone or reversed. Similarly when an acceptance is
being made, in response of an offer it cannot be revoked or cancelled. On the other hand, if a
lighted matchstick is not brought near a train of gunpowder nothing serious or disastrous would
occur. This implies that 1st party can revoke or reverse the offer before it is being accepted. If we
analyze “offer” and “acceptance” separately, they cannot lead to the formation of contract. But
whenever a valid offer is supported by acceptance, this leads to such a contract which is valid
and enforceable by law. The statement or analogy consists of “gunpowder” and “lighted
matchstick” which are “offer” and “acceptance” respectively. These two things help us to know
the importance of accepting an offer. To understand the meaning of this analogy it is important
to know what an offer and acceptance is. They are briefly defined under the contract act as:

 OFFER:
Offer is also termed as “proposal”. It is defined as “when one person signifies to another person
his willingness to do or not to do something with a view to obtain the assent of the other person,
he is said to make a proposal”

 ACCEPTANCE: (Contract Act 1872)

The Indian Contract Act 1872 defines acceptance in Section 2 (b) as “When the person to whom the
proposal has been made signifies his assent thereto, the offer is said to be accepted. Thus the
proposal when accepted becomes a promise.”

So as the definition states, when the offeree to whom the proposal is made, unconditionally accepts
the offer it will amount to acceptance. After such an offer is accepted the offer becomes a promise.

Say for example A offers to buy B’s car for rupees two lacs and B accepts such an offer. Now, this
has become a promise.

When the proposal is accepted and it becomes a proposal it also becomes irrevocable. An offer does
not create any legal obligations, but after the offer is accepted it becomes a promise. And a promise
is irrevocable because it creates legal obligations between parties. An offer can be revoked before it
is accepted. But once acceptance is communicated it cannot be revoked or withdrawn.
Rules regarding Valid Acceptance

1] Acceptance can only be given to whom the offer was made

In the case of a specific proposal or offer, it can only be accepted by the person it was made to. No
third person without the knowledge of the offeree can accept the offer.

Example: case study of Boulton v. Jones. Boulton bought Brocklehurst’s business but Brocklehurst
did not inform all his creditors about the same. Jones, a creditor of Brocklehurst placed an order
with him. Boulton accepted and supplied the goods. Jones refused to pay since he had debts to settle
with Brocklehurst. It was held that since the offer was never made to Boulton, he cannot accept the
offer and there is no contract.

When the proposal is a general offer, then anyone with knowledge of the offer can accept it.

2] It has to be absolute and unqualified

Acceptance must be unconditional and absolute. There cannot be conditional acceptance, that
would amount to a counteroffer which nullifies the original offer. Example: A offers to sell his cycle
to B for 2000/-. B says he accepts if A will sell it for 1500/-. This does not amount to the offer being
accepted, it will count as a counteroffer.

Also, it must be expressed in a prescribed manner. If no such prescribed manner is described then it
must be expressed in the normal and reasonable manner, i.e. as it would be in the normal course of
business. Implied acceptance can also be given through some conduct, act, etc.

However, the law does not allow silence to be a form of acceptance. So the offeror cannot say if no
answer is received the offer will be deemed as accepted.

3] Acceptance must be communicated

For a proposal to become a contract, the acceptance of such a proposal must be communicated to
the promisor. The communication must occur in the prescribed form, or any such form in the
normal course of business if no specific form has been prescribed.

Further, when the offeree accepts the proposal, he must have known that an offer was made. He
cannot communicate acceptance without knowledge of the offer.
So when A offers to supply B with goods, and B is agreeable to all the terms. He writes a letter to
accept the offer but forgets to post the letter. So since the acceptance is not communicated, it is not
valid.

4] It must be in the prescribed mode

Acceptance of the offer must be in the prescribed manner that is demanded by the offeror. If no
such manner is prescribed, it must be in a reasonable manner that would be employed in the normal
course of business.

But if the offeror does not insist on the manner after the offer has been accepted in another manner,
it will be presumed he has consented to such acceptance.

So A offers to sell his farm to B for ten lakhs. He asks B to communicate his answer via post. B e-
mails A accepting his offer. Now A can ask B to send the answer through the prescribed manner.
But if A fails to do so, it means he has accepted the acceptance of B and a promise is made.

5] Implied Acceptance

Section 8 of the Indian Contract Act 1872, provides that acceptance by conduct or actions of the
promisee is acceptable. So if a person performs certain actions that communicate that he has
accepted the offer, such implied acceptance is permissible. So if A agrees to buy from B 100 bales
of hay for 1000/- and B sends over the goods, his actions will imply he has accepted the offer.

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