Faraz Ali Student of BBA

1. Acceptance
• Sec 2(b)
“When the person to whom the proposal is
made signifies his assent thereto, the
proposal is said to be accepted”.
• Manifestation by the offerree of his assent
to the terms of the offer.

2. Legal Rules Regarding a Valid
Acceptance
1. Acceptance must be given by the person
to whom the offer is made.
• The rule of law is clear that “if you
propose to make a contract with A, then
B cant substitute himself for A without
your consent”.

3. Legal Rules Regarding a Valid
Acceptance
2. Acceptance must be absolute and
unqualified. (sec 7(1)
• Acceptance of all the terms of the offer.
• Even a slightest deviation is not allowed.

4. Legal Rules Regarding Valid
Acceptance
3. Acceptance must be expressed in some
usual and reasonable manner, unless
the proposal prescribes the manner in
which it is to be accepted. (sec7(2)
• Mental acceptance ineffectual.
• Example: (Brogden Vs Metropolitan Co)

5. Legal Rules Regarding a Valid
Acceptance
4. Acceptance must be communicated to
the acceptor.
• Must not only be made by the offeree but
must also be communicated by, or with
the authority of the offeree/acceptor.
• Example: Powell vs Lee

6. Legal Rules Regarding a Valid
Acceptance
4. Acceptance must be given within a
reasonable time and before the offer
lapses/revoked.
• Must be given within the specified time
limit, if any and within a reasonable time,
if no time is stipulated.
• Example:- Ramsgate Victoria Hotel Co
Vs Montifiore

7. Legal Rules Regarding a Valid
Acceptance
6. Acceptance must succeed the offer.
• Must be given after receiving the offer.
• Example:- allotment of shares previous
to application invalid

8. Legal Rules Regarding a Valid
Acceptance
7. Rejected offers can be accepted only, if
renewed.

9. Communication of Offer,
Acceptance and Revocation (sec 4
& 5)
1. Communication of an offer:-
• Is complete when it comes to the
knowledge of the person to whom it is
made.
2. Communication of an Acceptance:-
• (a) as against the proposer, when it is
put into a course o transmission to him,
(b) as against the acceptor, when it
comes to the knowledge of the proposer.

10. Communication of Revocation
3. Communication of a revocation,
• Is complete; (a) as against the person
who makes it, when it is put into course
of transmission to the person to whom its
is made, (b) as against the person to
whom it is made, when it comes to his
knowledge.