Acceptance of offer

Introduction:

The acceptance of the offer is the agreement to a request or proposal. The acceptance can be oral or written, but it must be unequivocal and unconditional to have legal effect. An offer, once accepted, becomes a binding contract.

For a contract to be legally binding, both parties must agree to the terms. There are two ways that a person can accept an offer: by responding with an affirmative statement or by performing the actions required by the proposal. If a person does not accept an offer within a reasonable amount of time, then they may lose their right to do so at all.

The Indian Contract Act, 1872 governs India’s offer and acceptance of contracts. The act applies to agreements made in India.

The act defines an offer as a proposal of an agreement communicated to the person with whom it is proposed that the contract shall be concluded and accepted by him. It also defines acceptance as an indication of willingness to terminate the agreement on the terms offered.

Offer and Acceptance:

The Indian Contract Act, 1872 defines an offer as a proposal for a bargain that the offeror may or may not be willing to conclude. The offeror has a right to withdraw or cancel the offer at any time before the offeree accepts it.

If an offer is accepted, it becomes a contract and its terms bind both parties. The intention is to become binding as soon as it is received by the person it addresses. Once an offer has been accepted, it can’t be withdrawn without the consent of the person who gets it.

The Indian Contract Act, 1872 has set out detailed provisions for the offer and acceptance of an agreement. The act defines an offer as a promise to do or abstain from doing anything, made with the intention that it shall become binding on the person making it when accepted by the person to whom it is made.

An offer is not complete until communicated. It becomes a contract if an offer is transmitted to the offeree either orally or in writing. It can be shared by post or any other form of communication like a phone call, email, etc.

Every proposal must be communicated before becoming a contract. If you make an offer and your counterpart does not know about it, you have not committed to anything and cannot be held liable for breach of contract if the parties are refused.

Offer accepted

An offer is an expression of willingness by a party (the offeror) to be bound to specific terms (or conditions) on the acceptance of those terms (or states) by another party (the offeree).

Accepting an offer must be communicated to the person who made the offer so that the person understands and generally in a way that can be unambiguously interpreted as acceptance. If the terms of an offer are such that they cannot be accepted, then it is said to be rejected.

Offers can be either definite or indefinite. A definite offer specifies the exact terms of the offer, including the price and other material details. An indefinite offer does not define all the terms but instead provides general information about the offer.

In general, the offer is communicated from one party to another. The other party must then accept the offer for the contract to be legally binding.

An example of an offer and acceptance will be if a company offers a new customer a discount on their first purchase of 50% or more. The customer accepts this offer by making that purchase, and then they are obligated to pay that price for their purchase.

Types of Acceptance:

•     Expressed Acceptance: This type of acceptance is the person who offers the acceptance and makes it clear that they are accepting. It can be verbal or written.
•     Implied Acceptance: This type of acceptance is when the person does not say no, but it is evident in their actions that they are accepting.
•     Unspoken Acceptance: This type of acceptance is when a person does not say no, but it is unclear whether they are accepting or not in their actions.

Rules for a valid Acceptance

• The offer can only be accepted by the person to whom it was made.
• The person who made the offer cannot change or revoke their acceptance.
• If an offer is revoked, it is no longer valid and cannot be accepted by anyone else.
• Absolute and qualified; Absolute Acceptance means that the contract terms are accepted without any change, qualification, or addition. Qualified acceptance is when some of the contract terms are accepted, and others are rejected.
• Valid Acceptance is when it is absolute and unqualified – which means that there is no reservation or condition on what has been agreed to in the agreement. This type of acceptance also includes a statement that no other agreement will be made concerning the subject matter covered by this contract unless such agreement expressly states that it modifies or supersedes this contract.
• The offer should be prescribed. If it is not, then it is considered to be an acceptance.
• Implied acceptance is a term that has been derived from Section 8 of the Indian Contract Act 1872. It is a type of acceptance that is not expressed but implied by the circumstances and conduct of the parties. To have an implied acceptance, one party should have an obligation to do something, and another party should make an offer.

Conclusion:

For a contract to be valid, there must be an offer and acceptance between the parties involved. It means that there needs to be an offer made by one party, which the other party accepts. The contract can then come into existence when both parties have fulfilled their obligations under the agreement.