by Acceptance refers to the final and unqualified expression of assent to the terms of an offer. Once an offer is made, the offeree may either accept it or reject it. If the offeree accepts the offer, a binding contract is formed. Here are some details on acceptance and its revocation:
Acceptance:
- Acceptance must be communicated to the offeror. According to Section 2(b) of the Indian Contract Act, 1872, acceptance is the expression of assent to the terms of the proposal made by the offeror.
- The acceptance must be unconditional and in accordance with the terms of the offer. Any change in the terms of the offer is not an acceptance, but rather a counter-offer that terminates the original offer.
- Acceptance must be given within a reasonable time or within the time specified in the offer. If the offer specifies a time limit for acceptance, the acceptance must be given within that time period, or the offer is considered as lapsed.
Revocation of Acceptance:
- Once the acceptance is communicated, it cannot be revoked or withdrawn. However, in certain exceptional cases, revocation of acceptance may be allowed under the law.
- If the offeror has given the offeree an option to revoke the acceptance, the offeree may revoke the acceptance at any time before the communication of acceptance is complete as against the offeror. For example, if the offeree accepts an offer by post, but before the letter of acceptance reaches the offeror, the offeree sends another letter revoking the acceptance, then the revocation is valid.
- If the acceptance is based on a mistake of fact, which is fundamental to the contract, the acceptance may be revoked. For example, if A offers to sell a car to B, and B accepts the offer, but later discovers that the car is a stolen vehicle, B can revoke the acceptance.
- If the offeror breaches a condition of the contract, the offeree may revoke the acceptance. For example, if A offers to sell a car to B, and B accepts the offer, but later discovers that the car does not have a valid registration, B can revoke the acceptance.
Legal Provisions
Acceptance:
- According to Section 2(b), “When the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted. A proposal, when accepted, becomes a promise.”
- Acceptance must be given in the manner and mode prescribed by the offeror, or in a reasonable manner. If the mode of acceptance is not prescribed by the offeror, then it may be given in any reasonable manner.
Revocation of Acceptance:
- According to Section 5, “A proposal may be revoked at any time before the communication of its acceptance is complete as against the proposer, but not afterwards.”
- According to Section 6, “The communication of a proposal is complete when it comes to the knowledge of the person to whom it is made.”
- According to Section 7, “An acceptance may be revoked at any time before the communication of the acceptance is complete as against the acceptor, but not afterwards.”
- According to Section 8, “The communication of an acceptance is complete – as against the proposer, when it is put in a course of transmission to him, so as to be out of the power of the acceptor.”
- According to Section 9, “The communication of an acceptance is complete – as against the acceptor, when it comes to the knowledge of the proposer.”
Exceptions to Revocation:
- According to Section 5, “A proposal may be revoked at any time before the communication of its acceptance is complete as against the proposer, but not afterwards.”
- According to Section 6, “An acceptance may be revoked at any time before the communication of the acceptance is complete as against the acceptor, but not afterwards.”
- According to Section 7, “An acceptance may be revoked only with the consent of the proposer.”
Agreement
An agreement is a meeting of the minds between two or more parties, whereby they agree to certain terms and conditions. It is an essential element of a contract and forms the basis of any legally enforceable agreement. In simple terms, an agreement can be defined as a mutual understanding between two or more parties regarding their respective rights and obligations.
In the context of contract law, an agreement involves an offer made by one party to another party, and the acceptance of that offer by the other party. Once the offer is accepted, it forms a binding contract between the parties.
An agreement can be oral or written. However, it is always advisable to have a written agreement as it serves as evidence of the terms and conditions agreed upon by the parties. Written agreements are generally more reliable and enforceable than oral agreements.
An agreement may or may not be legally enforceable. For an agreement to be legally enforceable, it must meet certain legal requirements, such as the parties to the agreement must have the capacity to contract, the object of the agreement must be lawful, and there must be free consent of the parties.
Consideration
Consideration is an essential element of a contract. It refers to the price or value that is exchanged by the parties to the agreement. Consideration can be defined as the benefit that one party receives in exchange for the promise made by the other party.
In the context of contract law, consideration is a necessary element for the formation of a contract. It is the legal term used to describe what each party to the agreement is giving and receiving in return for the promises made. For example, if A promises to pay B Rs. 500 for delivering goods to him, the consideration would be the Rs. 500 paid by A and the goods delivered by B.
Consideration can be in the form of money, goods, services, or any other benefit that has value. The consideration exchanged must have value and be sufficient, but it need not be adequate. This means that the courts are not concerned with whether the value of the consideration is equivalent to the value of the promise made. However, the consideration must have some value, or else it will not be considered as consideration.
Consideration must also be legal and not against public policy. This means that the consideration exchanged must be lawful and must not be against the law, morality or public policy. For example, if A promises to pay B Rs. 1000 to steal goods from C, the consideration will not be legal, and the contract will be considered void.
