In contract law, acceptance is the moment when an agreement becomes legally binding. For a contract to be valid, acceptance must meet certain conditions outlined by law. These conditions ensure that both parties are on the same page and that the agreement is made with full understanding and consent.
Nature and Communication of Acceptance
For acceptance to be valid, it must be absolute and unconditional. This means the person accepting the offer must agree to it exactly as it was made, without any changes. For instance, if A offers to sell a pen to B for ₹10, and B says he’ll buy it for ₹7, this is not acceptance but a counter-offer. Only when B accepts the ₹10 offer without conditions does a contract form.
Acceptance must be communicated clearly to the offeror it cannot be implied from silence. Simply not responding to an offer does not count as acceptance, and the offeror cannot declare that silence will mean acceptance. Also, the communication must be directed to the offeror and not to anyone else. Without proper communication, there can be no contract.
Acceptance may be express (spoken or written) or implied (shown through actions), but in either case, it must show a genuine intention to accept and be bound by the contract.
Time, Manner, and Validity of Acceptance
Acceptance must happen while the offer is still valid. If the offer has expired or has been withdrawn, any acceptance made after that is not legally valid. Sometimes, a deadline is set for acceptance, and in those cases, acceptance must happen within that fixed period. If no time is mentioned, it should occur within a ‘reasonable’ time, which depends on the situation.
If the offeror has specified a particular method of acceptance, it must be followed. If no method is given, acceptance should be made in a reasonable and commonly accepted way. If acceptance is not given in the prescribed manner, the offeror can reject it—but they must do so within a reasonable time, or else the acceptance will stand.
Only the person to whom the offer is made can accept it. No one else can accept on their behalf unless they have legal authority. Also, the person accepting must be aware of the offer.
In Lalman Shukla v. Gauri Dutt, it was held that someone who doesn’t know about an offer cannot accept it, even if they act in a way that might seem like acceptance.
Conclusion
To sum up, valid acceptance is the cornerstone of a binding contract. It must be clear, communicated, timely, and made by the right person with the intention to create a legal relationship. By understanding and following these basic rules, parties can ensure that their agreements are not only mutual but also legally enforceable.