Monday, September 12, 2016

Rules regarding valid acceptance

  1. Acceptance should be absolute and unqualified
In the case of Nihal Chand v. Amarnath, AIR 1926 Lal 645 Indian court of law held that "acceptance should be absolute and unqualified if there is acceptance with the  reservation in offer it is not the valid acceptance and doesn’t give emergence of valid contract and legal obligation there upon to the parties” 
  1. Acceptance should be given by the person to whom offer is made; another person can't give acceptance to the offer.
a.       Person – only person to whom offer is made
b.      Group- Only a person of than group
c.       General Public- all the general public


  1. Acceptance should be given before lapse of offer.
Since acceptance is given to the offer, it must be given before lapse of offer. Acceptance given to the offer that was lapsed before doesn’t have any meaning and won’t create any contract.

  1. It must be give according to the mode prescribe or usual mode
If offeror prescribe certain mode to give acceptance to the offer then the offeree should use that mode. But is there is no any prescription of mode for acceptance for the communication then the offeree should use usual mode.

  1. It must be given within reasonable time
If offer doesn’t contain the specific time for the acceptance then the acceptance should be given within reasonable time. Acceptance after reasonable time doesn’t create any valid contract and obligation upon the parties.  Like Apurba  offer the the Ajaya to send 10 tones of sugar for Tihar before 15 days of Tihar and Ajaya accept that offer after Tihar will not make any valid acceptance.

  1. Acceptance should be given with the intention to create legal relationship
This is most important rule to the formation of valid contract. Parties should have intention to create legal relationship while giving the acceptance to the offer. Mere jocular acceptance doesn’t create any legal obligation upon the parties and it won’t create valid contract either.

  1. Silence doesn’t amount to acceptance
Section 7(4) of Nepalese Contract Act 2056 provides that although the offer mentions that in case of failure to communicate refusal within prescribe time shall be regarded as acceptance. The failure to do so shall not be regarded as acceptance. Thus silence doesn’t amount to acceptance.

  1. Indirect performance of term of offer signifies assent for acceptance.
When the offeree acts or performs certain behavior as to the offer then it signifies the assent for acceptance. This is also called the indirect acceptance

  1. Acceptance should be communicate the offeror
Once an offer is accepted by the offeror it must be communicated to the offeree. Only accepting the offer is not enough, the notice of acceptance should be given to offeror.

  1. Acceptance can revoke

See Section 8 of NCA 2056.

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