Business Environment and Law-Law Of Contract (Indian Contract Act 1872)
ACCEPTANCE-Law Of Contract
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“When the person to whom the proposal is made signifies his assent thereto the proposal is said to be accepted. A proposal once accepted becomes a contract.” Where two parties make offers to each other with identical terms, without knowing each other’s offer. These offers are called ‘CROSS OFFERS”.
ACCEPTANCE:
Who
can accept?: Where an offer is made to a specified person, only
that specified person can accept it
and nobody else. But where the offer is made to an uncertain body of persons,
anybody can accept the offer.
Rules Regarding Acceptance
2. The
Acceptance must be expressed in some usual and reasonable manner, unless the
proposal prescribes a manner in which it is to be accepted
3. Acceptance by
performing conditions or
receiving consideration:Example:
A offers to pay Rs. 100 to B, if B throws the ring ball into the basket in first attempt. B immediately
throws the ball into the basket in first attempt. By the performance of this
condition B is said to have accepted the offer.”
4. Acceptance
must be communicated: Unless acceptance is communicated it would not turn the offer into a contract. However,
if the offeree posts the acceptance but it does not reach the offerer, it would
be deemed to be communicated. But the offerer cannot frame his offer in such a
way that the silence of the offeree would become his acceptance.
5. Acceptance
should be given within stipulated time and before the
offer is revoked: If the offer lapses before acceptance is given, the acceptance would not result into a
contract. But where no time limit is stipulated the offer should be accepted
within a reasonable time.
6. Where
an offeree accepts an offer knowing that it has been made by the offeror under
a mistake, the contract is not binding upon the offeror.
Consensus Ad Idem
According
to sec. 13, “Two or more persons are said to consent when they agree upon the
same thing in the same sense”. But where the circumstances lead one party to
believe that the other would have understood the terms of the agreement, law
may imply unenforceable agreement. Because it is not what a party thinks in his
mind but what he expresses or does that binds him to the contract.
Tags : Business Environment and Law-Law Of Contract (Indian Contract Act 1872)
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