Acceptance of Offer in Contract Law

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Questions and Answers

What is the exception to the rule that silence cannot be considered as acceptance of an offer?

Where offeree agrees that non-refusal by him within a specified time shall amount to acceptance of offer. (correct)

When the offer is made through an intermediator.

When the proposer is in dire need of immediate acceptance.

Where there is a custom or usage of trade which specifies that silence shall amount to acceptance. (correct)

What is implied by 'acceptance by conduct'?

Written communication of acceptance.

Performing an act that indicates acceptance. (correct)

Remaining silent to an offer.

Verbally accepting an offer.

When is the communication of an offer considered complete?

When the letter containing the offer reaches the offeree.

When the proposer receives a response from the offeree.

When the offeree reads the message in the letter. (correct)

When the proposer sends the offer.

What is the mode of acceptance mentioned in Section 8?

Acceptance by conduct. Signup and view all the answers

What is the general rule regarding acceptance?

Acceptance must be communicated to the proposer. Signup and view all the answers

When is acceptance complete?

When the acceptance is communicated to the proposer. Signup and view all the answers

What are the two issues for discussion and understanding in the context of contracts?

Modes of acceptance and when is acceptance complete. Signup and view all the answers

What is the implication of the principle that 'mere receiving of the letter is not sufficient'?

The offeree must read the letter to understand the offer. Signup and view all the answers

Who can accept a specific offer?

Only the person to whom the offer is made Signup and view all the answers

What is the requirement for a valid acceptance according to Section 7 of the Act?

It must be absolute and unqualified Signup and view all the answers

In a general offer, who can accept it?

Any person who has the knowledge of the offer Signup and view all the answers

What happened in the case of Boulton vs. Jones (1857)?

There was no contract between Boulton and Jones Signup and view all the answers

What is the mode of acceptance in a case where the proposal prescribes the manner in which it must be accepted?

The manner prescribed in the proposal Signup and view all the answers

What was held in the case of Neale vs. Merret?

N's acceptance was not valid Signup and view all the answers

Is communication of acceptance required in a general offer?

No, it is not required Signup and view all the answers

What is the requirement for acceptance according to the definition of acceptance?

The person to whom the proposal is made signifies his assent thereto Signup and view all the answers

When is the communication of acceptance complete as against the proposer in case of acceptance by post?

When the letter of acceptance is posted Signup and view all the answers

What is the effect of a letter of acceptance being lost in transit or not delivered on the validity of the contract?

The contract is valid Signup and view all the answers

Where is the place of contract if the acceptance is made by post?

Where the letter is posted Signup and view all the answers

When is an acceptance to an offer considered complete?

When the offeror receives the acceptance Signup and view all the answers

What is the requirement for a valid acceptance by post?

The letter must be correctly addressed and adequately stamped Signup and view all the answers

What is the effect of the revocation of acceptance on the contract?

The contract is invalid Signup and view all the answers

When is the communication of acceptance complete in case of an agent?

When the acceptance is given to the agent Signup and view all the answers

What is the difference in the law relating to the revocation of acceptance between India and England?

The law is different in both countries Signup and view all the answers

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.