BUSINESS LAW- ACCEPTANCE AND LEGAL RULES REGARDING AN ACCEPTANCE IN CONTRACT
MEANING: It occurs when an offeree agrees to be mutually bound to the terms of the contract by giving consideration or something of value like money to seal the deal. When the person to whom the proposal is made signifies his assent, it is an acceptance of the proposal. An accepted proposal is called a promise or an agreement.
e.g. A offers to sell his horse to B for Rs.1000. B accepts the offer to purchase the horse for Rs.1000.this is acceptance.
Acceptance may be express or implies when the acceptance is made by words, spoken or written it is an acceptance. If it is accepted by conduct, it is implied acceptance.
LEGAL RULES OR ESSENTIALS FOR A VALID ACCEPTANCE:
- ACCEPTANCE MUST BE ABSOLUTE:An acceptance must be unconditional and unqualified. accepting an offer with conditions, variation and reservation amount to counter offer and rejection of the original offer.
- ACCEPTANCE MUST BE COMMUNICATED TO THE OFFERER: If the offeree remains silent and does nothing to show that he has accepted the offer, no contract is formed. The acceptor should do something to signify his attention to accept.
- ACCEPTANCE MUST BE MADE WITHIN A REASONABLE TIME: Acceptance to be valid must be made in the time allowed by the offeror and if no time is specified, it must be made within the reasonable time.
- ACCEPTANCE MUST BE AWARE OF THE PROPOSAL AT THE TIME OF THE OFFER: Acceptance follows offers. If the acceptor is not aware of the existence of the offer and conveys his acceptance, no contract comes into being, There must be knowledge of the offer before anyone would consent to it.
- ACCEPTANCE MUST BE GIVEN BEFORE THE OFFER LAPSES: It means that acceptance must be made while the offer is in force. i.e before the offer has been revoked or offer has lapsed.
- ACCEPTANCE CANNOT BE IMPLIED FROM SILENCE: No contract is formed if offeree remains silent and does nothing to show that he has accepted the other.