acceptance

Under the Contract Act, when the person to whom a proposal is made signifies his assent to it, the proposal is said to be accepted, and it becomes a promise. To convert a proposal into a promise the acceptance must be absolute and unqualified, and expressed in a usual and reasonable manner unless the proposal prescribes a manner.

An acceptance that changes the terms is a counter-offer, which rejects the original offer. Mental assent is not enough; it must be communicated. For postal acceptance, communication is complete against the proposer when the letter is posted, and against the acceptor when it reaches the proposer, so an acceptance can be revoked before it reaches him. Silence is generally not acceptance.

Example

B's reply agreeing to buy the car only if A fitted new tyres was not an acceptance under s.7 but a counter-offer, so no contract arose.

In Indian law

• Section 2(b), Indian Contract Act, 1872 (definition of acceptance)
• Section 7, Indian Contract Act, 1872 (acceptance must be absolute)
• Section 4, Indian Contract Act, 1872 (when communication of acceptance is complete)

See also

offer · invitation to offer · agreement · contract

Read more in the study notes

• Administrative law: meaning, nature, scope, growth and sources (Administrative Law)
• Rule of law and droit administratif (Administrative Law)
• Judicial control: public and private law remedies, writ procedure and ouster clauses (Administrative Law)
• Government contracts and state liability: the administrative-law angle (Administrative Law)
• Corruption, maladministration and the ombudsman: Lokpal and Lokayukta (Administrative Law)
• Methods of dispute resolution: adversarial, inquisitorial and ADR (Alternative Dispute Resolution Systems)