For valid acceptance, certain conditions must be fulfilled. These are:
1. Acceptance must be absolute and unqualified:
Section 7(1) of the Indian Contract Act provides that ‘In order to convert a proposal into a promise, the acceptance must be absolute and unqualified…..’ A qualified and conditional acceptance amounts to a counter offer which amounts to non acceptance. Moreover, an offer must be accepted in full. If only a part of the offer is accepted, the acceptance will not be valid. For example, X offers to sell 400 quintals of sugar to Y at a certain price.
Y accepts to buy 280 quintals only. It is not a valid acceptance since it is not the whole of the offer. In McPherson Vs. Alana, AIR 1951 SC 184, the plaintiff offered Rs. 6,000 for the purchase of defendant’s house and adding that he could pay more if found reasonable, to which defendant replied, “Won’t accept less than Rs. 10,000” that was accepted by the plaintiff as counter offer. Court held that no contract is concluded between the party as second reply was a tender for the offer and not acceptance.
ADVERTISEMENTS:
2. Acceptance must be in prescribed manner:
Acceptance has to be made in the manner prescribed or indicated by the offered. If the offer is not accepted in the prescribed manner it is up to the offered to accept or reject such acceptance. But when the acceptance is not in the prescribed manner and the offered wants to reject it, he must inform the acceptor within a reasonable time that he is not bound by acceptance since it is not in the prescribed manner. If he does not do so within a reasonable time, he will be bound by the acceptance. Where no manner is prescribed. When no mode of acceptance is prescribed, acceptance must “be expressed in some usual and reasonable manner.”
3. Acceptance must be communicated:
The acceptance is valid only when it has been communicated to the offered. A mere silence or mere mental acceptance not evidenced by words or conduct is no acceptance. However, the offered, while making an offer, cannot impose a burden on the other party to communicate his refusal or rejection.
ADVERTISEMENTS:
He can only prescribe the manner in which the offer is to be accepted. In case Felt house Vs. Bindley (1863), 7 L.T. 835, F offered by a letter to buy his nephew’s horse for £30 saying if I hear no more about him, I shall consider the horse is mine . The nephew sent no reply at all but told Bindley, his auctioneer, not to sell that particular horse as he intends to sell it to his uncle. Bindley, however, sold the horse by mistake. F sued auctioneer.
It was held that F would not succeed as his nephew had not communicated acceptance and hence there was no contract. In Delhi Development Authority vs. Ravinder Mohan Aggarwal, 1999(3), SCC 172, it has been held that mere noting on the file of acceptance of the bid is not enough, it should be duly communicated. The knowledge of the bidder of such noting is inconsequential and can not give rise to contract.
4. Only authorised person should communicate about the acceptance:
In order to make an acceptance valid, it should be communicated by the offeree himself or by a person who has the authority to accept. In case, Powell vs. Lee (1908), 99 L.T. 284. P applied for the post of a headmaster in a school.
ADVERTISEMENTS:
The Managing Committee passed a resolution appointing P to the post but this decision was not communicated to P. However, a member of the Managing Committee, in his individual capacity and without any authority, informed P about the decision. Subsequently, the managing committee cancelled its resolution and appointed some one else. P filed a suit for breach of contract. It was held that he was not informed about his appointment by some authorized person; hence there was no communication of acceptance.
5. Acceptance should be made within the time prescribed or within a reasonable time:
The acceptance should be given within the prescribed time or within a reasonable time. What is a reasonable time depends upon the facts of the case.
6. Acceptance should be given before the offer lapses or is withdrawn:
ADVERTISEMENTS:
The acceptance must be given while the offer is in force. Once an offer has been withdrawn or stands lapsed, it cannot be accepted.