Page 19 - DMGT407Corporate and Business Laws

Corporate and Business Laws

Notes document is considered a non-contractual document as it is not supposed to contain the conditions
of the contract.

1.5.5 Acceptance of an Offer

1. When the person to whom the offer is made signifies his assent thereto, the offer is said to
be accepted [s.2(b)]. Thus, acceptance is the act of giving consent to the proposal. The
offeree is deemed to have given his acceptance when he gives his assent to the proposal.
The acceptance of an offer may be express or implied. It is express when the acceptance has
been signified either in writing or by words of mouth or by performance of some required
act of the offeree. The acceptance by performing the required act may be exemplified with
reference to Carlill v. Carbolic Smoke Ball Co. case (supra).

Examples:
(a) A shopkeeper received an order from a customer - a household lady. He executed
the order by sending the goods. The customer’s order for goods constitutes the offer
which was accepted by the shopkeeper by sending the goods. It is a case of acceptance
by conduct. Here the shopkeeper is accepting the offer by the performance of the act
(i.e., sending the goods).

(b) A loses his dog and announces a reward of ` 500 to anyone who brings his dog to
him. B need not convey his acceptance of the offer, which is a general one. If he finds
the dog and gives it to A, he is entitled to the reward as he accepted the offer by
doing the required act.
2. Implied acceptance. Acceptance is implied when it is said to be gathered from the
surrounding circumstances or the conduct of the parties.

Examples:
(a) A enters into a bus for going to his destination and takes a seat. From the very nature
of the circumstance the law will imply acceptance on the part of A.

(b) A’s scooter goes out of order and he is stranded on a lonely road. B, mechanic who
observes this starts correcting the fault. A allows B to do the same. From the nature
of the circumstances A has given his acceptance to the offer of B.
3. Who can accept an offer? We have mentioned earlier that a specific offer can be accepted
only by the person to whom it is made. The rule of law is that if A wants to enter into a
contract with B then C cannot substitute himself for B without A’s consent. However in the
case of a general offer it can be accepted by anyone by complying with the terms of the
offer.
4. Essentials of a valid acceptance. The following are the essentials of a valid acceptance:
(i) It must be absolute and unqualified and according to the exact terms of the offer (s.7),
(ii) It must be communicated to the offeror, (iii) It must be according to the mode, if any,
prescribed by the offeror (s.7), (iv) It must be given within the time specified, if any,
otherwise it must be given within a reasonable time, (v) It must be made before the offer
lapses or is terminated, revoked or withdrawn. If the offer has already lapsed then there is
nothing to accept, (vi) It must be given by the person to whom the offer is made. However,
in the case of a general offer, acceptance can be given by any member of the public.
5. A mere mental acceptance is no acceptance. Acceptance must be communicated to the
offeror. The communication of acceptance may be express or implied. A mere mental

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