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Questions and Answers
What is the exception to the rule that silence cannot be considered as acceptance of an offer?
What is implied by 'acceptance by conduct'?
When is the communication of an offer considered complete?
What is the mode of acceptance mentioned in Section 8?
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What is the general rule regarding acceptance?
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When is acceptance complete?
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What are the two issues for discussion and understanding in the context of contracts?
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What is the implication of the principle that 'mere receiving of the letter is not sufficient'?
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Who can accept a specific offer?
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What is the requirement for a valid acceptance according to Section 7 of the Act?
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In a general offer, who can accept it?
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What happened in the case of Boulton vs. Jones (1857)?
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What is the mode of acceptance in a case where the proposal prescribes the manner in which it must be accepted?
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What was held in the case of Neale vs. Merret?
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Is communication of acceptance required in a general offer?
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What is the requirement for acceptance according to the definition of acceptance?
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When is the communication of acceptance complete as against the proposer in case of acceptance by post?
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What is the effect of a letter of acceptance being lost in transit or not delivered on the validity of the contract?
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Where is the place of contract if the acceptance is made by post?
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When is an acceptance to an offer considered complete?
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What is the requirement for a valid acceptance by post?
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What is the effect of the revocation of acceptance on the contract?
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When is the communication of acceptance complete in case of an agent?
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What is the difference in the law relating to the revocation of acceptance between India and England?
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Study Notes
Acceptance of an Offer
- Silence amounts to acceptance of an offer in two cases:
- Where offeree agrees that non-refusal within a specified time shall amount to acceptance
- When there is a custom or usage of trade that specifies silence shall amount to acceptance
Acceptance by Conduct/Implied Acceptance
- Section 8 provides for acceptance of a proposal by conduct, rather than verbal or written communication
- Example: A cobbler sitting with a brush and polish implies acceptance of a person giving their shoes for polishing
General Rules as to Communication of Acceptance
- The communication of an offer is complete when it comes to the knowledge of the person to whom it is made (Section 4)
- Example: If 'A' makes a proposal to 'B' by post to sell a house, the offer is communicated on the day 'B' receives the letter, not when 'B' reads it
- Two key issues to consider: modes of acceptance and when acceptance is complete
Legal Rules regarding a Valid Acceptance
- Acceptance can only be given by the person to whom the offer is made (specific offer), but can be given by anyone with knowledge of the offer (general offer)
- Acceptance must be absolute and unqualified
- Acceptance must be communicated, but not necessarily in writing
Acceptance by Post
- When acceptance is given by post, communication of acceptance is complete as against the proposer when the letter of acceptance is posted
- Example: If 'B' accepts 'A's proposal and sends acceptance by post on 14th, communication of acceptance is complete on 14th as against 'A', and when the letter reaches 'A' as against 'B'
Delayed or No Delivery of Letter
- If the letter of acceptance is posted but never reaches the offeror, or is delayed in transit, it does not affect the validity of acceptance
- The offeror is bound by the acceptance if the letter is correctly addressed, adequately stamped, and duly posted
Acceptance by Telephone, Telex, or Fax
- If communication of an acceptance is made by telephone, tele-printer, telex, fax machines, etc., it completes when the acceptance is received by the offeror
The Place of Contract
- In case of acceptance by post, the place where the letter is posted is the place of contract
Communication of Acceptance in Case of an Agent
- Communication of acceptance is completed when the acceptance is given either to the agent or to the principal
- If the agent fails to convey the acceptance received from offeree, still the principal is bound by the acceptance
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Description
This quiz covers the exceptions to the rule of acceptance of offer in contract law, including silence as acceptance and acceptance by conduct or implied acceptance.