Q.No.

1
Define ‘Acceptance’ and explain how the acceptance should be made.

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. ”As the definition states, acceptance occurs when
the offeree to whom the proposal is made unconditionally accepts the offer. When such an offer
is accepted, it transforms into a promise.

1. Communication of Acceptance by express communication

When communication is made by word of mouth, letters, telegram, advertisement or something

of that sort.

2. Communication of Acceptance by Conduct

Acceptance of the contract by conduct is defined as a communication made by any kind of act
that conveys a meaning that the offeree is willing to or is signifying his or her acceptance to the
contract. It should be a positive action. Furthermore, the acceptance must be communicated to
the offeror directly; otherwise, it is useless. When a person indicates his assent to a proposal, it is
said to be accepted in the Indian Contract Act, and when an offer is accepted, it is said to be
promising. However, there is a legal rule that defines what constitutes a valid acceptance.

Q.No.2 Explain the prerequisites of valid acceptance.

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

A specific proposal or offer can only be accepted by the person to whom it was made. The offer
cannot be accepted by a third party without the consent of the offeree.

2] It has to be absolute and unqualified

Acceptance must be complete and unconditional. Conditional acceptance is not possible because
it would be a counteroffer, nullifying the original offer.

3] Acceptance must be communicated

The acceptance of a proposal must be communicated to the promisor in order for it to become a
contract. If no specific form has been prescribed, the communication must take place in any form
that would be appropriate in the normal course of business.

4] It must be in the prescribed mode

Acceptance of the offer must take place in the manner specified by the offeror. If no specific
method is specified, it must be a reasonable method that would be used in the ordinary course of
business. If the offeror does not insist on the manner after the offer has been accepted in another
way, it will be assumed that he has agreed to it.

5] Implied Acceptance
Acceptance by conduct or actions of the promisee is acceptable under Section 8 of the Indian
Contract Act of 1872. As a result, if a person takes certain actions that imply that he has accepted
the offer, that implied acceptance is legal.