Essentials of Valid Acceptance

Essentials of a Valid Acceptance

(As per Indian Contract Act, 1872 – Sections 2(b) and 7)

To form a valid contract, an offer must be followed by a valid acceptance. The acceptance must be clear, unconditional, and communicated as per legal rules.

📘 Essentials of a Valid Acceptance:

No.EssentialsExplanation / Example
1️⃣Acceptance must be absolute and unqualifiedIt should match the offer exactly – no conditions or changes. 🔹 Sec 7(1) 📌 Example: If A offers to sell a bike for ₹50,000 and B accepts ₹48,000 — not valid acceptance, but a counter-offer.
2️⃣Acceptance must be communicated to the offerorSilence is not acceptance. There must be clear communication. 🔹 Felthouse v. Bindley
3️⃣Acceptance must be made in the prescribed modeIf the offeror specifies a mode of acceptance, it must be followed. 📌 Example: If A asks for email acceptance, B cannot validly accept by post unless A allows.
4️⃣Acceptance must be given within a reasonable timeIf no time is prescribed, it must be accepted within reasonable time before the offer lapses.
5️⃣Acceptance must be made while the offer is still in forceIf the offer is revoked or expired, acceptance after that is not valid.
6️⃣Acceptance must be made by the person to whom the offer is madeOnly the offeree (or authorized agent) can accept the offer.
7️⃣Acceptance must show intention to create legal relationsAcceptance must be genuine and intended to create legal obligations, not just casual or social agreements.
8️⃣Mental acceptance is not sufficientMere mental intention to accept is not valid unless it is communicated.

📚 Legal Reference:

Section 2(b): “When the person to whom the proposal is made signifies his assent...”

Section 7: Acceptance must be absolute and according to the offer.

🧠 Key Case Laws:

🔹 Felthouse v. Bindley – Silence ≠ acceptance

🔹 Entores Ltd. v. Miles Far East Corp – Instant communication

🔹 Brogden v. Metropolitan Railway Co. – Acceptance by conduct

Conclusion:

A valid acceptance must be clear, unconditional, communicated, and made according to the offer, while the offer is still open.

 

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