Section 7 of the Indian Contract Act, 1872 requires that the acceptance must be absolute and unqualified. Acceptance must be absolute and unqualified The offeree's approval cannot be conditional.For e xample, 'A' wants to sell her car to 'B' for Rs 2 lakh, 'B' can't come back and says that she accepts the offer but will buy the same for Rs. The acceptance of an offer enables the parties to come into a written . If the attempted acceptance mirrors the offer, a contract is formed, and the terms are those of the offer. Counter offers If for instance, M offered Land to N at $280. C. 1895; re-en. If the acceptance is conditional on another event or stipulation, it creates a counteroffer and the roles of the parties become reversed. Acceptance must be absolute and unqualified :-says that in order to convert a proposal into a promise, the acceptance It must be absolute and unconditional. Acceptance under the Indian Contract Act Is one of the main essentials for a valid contract. In other words, the acceptance must conform to the exact terms of the offer. An acceptance must be absolute and unqualified, or must include in itself an acceptance of that character which the proposer can separate from the rest, and which will conclude the person accepting. ii) Acceptance must be communicated in some usual and reasonable manner, section 7(b) The communication of the acceptance must be usual and . II. No conditional acceptance leads to a valid acceptance because the same would amount to counteroffer and it nullifies . Acceptance is a final and unqualified expression of assent to the terms of an offer. A binding contract is created when an offer is accepted by the offeree. If there are variations then it is not acceptable as it may constitute a counter offer which destroys the original offer. O b. unqualified. An agreement that fulfils all the necessary conditions given under the Indian Contract Act to form any type of contract must have the acceptance of the offer. A. History: En. 7. If the proposal prescribes a manner in which it is to be accepted, and the acceptance is not made in such manner, the . A The acceptance must be absolute B The acceptance must be within the prescribed time limit C The acceptance must be unqualified D The acceptance must be expressed in some usual and reasonable manner. Must be given only by the person to whom the offer is made: An offer can be accepted only by the person or persons to whom it is made and with whom it imports an intention to contract. . . Acceptance must be an unqualified, 'mirror-image' of the offer. O d. all of the above. There is no contract unless and until . (1) be absolute and unqualified. Acceptance with variations is a counter proposal and there is no contract until this counter proposal is accepted by the original proposer. 62000/-, Kartika can't come back and state that she accepts the offer but she will buy the same for Rs. N replied accepting and enclosing $80 with a promise to pay the balance by monthly instalments of $50 each. According to section 2(b) of Indian Contract Act,1872, when a person to whom an proposal has been made, signifies his assent thereto, Following are some conditions of a valid Acceptance: Acceptance must be absolute and unqualified - Acceptance must be absolute. It must be absolute and unqualified. By red macha. O b. unqualified. . Purchaser's receipt of any product delivered hereunder shall be an unqualified acceptance of and a waiver by Purchaser of the right of Purchaser to make a claim with respect to such product. (Butler Machine tool co v Ex-cell-O Corp (1979)) After parties have reached agreement, offer and acceptance may be set out in formal . There can not be conditional acceptance, that might amount to a counteroffer which nullifies the first offer. Subcribe to Our Blogs. According to Section 7 of the Indian Contract Act 1872, acceptance must be absolute and unqualified, means without any deviation of any kind in the proposal or without any condition. 6. An acceptance which gives assent without qualification to the order of the drawer, is termed as ' general acceptance '. Acceptance must be in the most prescribed mode 5. (c) When the offeree, writes the letter of acceptance, but doesn't post it. Acceptance takes place as against the proposer, when _____. Acceptance must be communicated Acceptance can be expressed and implied 3. Y offered to pay eight thousand rupees for the property. Look at the example to understand in a better way. A qualified acceptance is a new proposal. Treitel, The Law of Contract, 10th edn, p.16]. A The acceptance must be absolute B. Acceptance. Trietel defines such as a final and unqualified expression of assent to the terms of an offer, a mere consensus/meeting of minds does not equal a contract an external expression must be made for acceptance to take place . These are: (1) Acceptance must be absolute and unqualified (Section 7) An acceptance to be valid must be absolute and unqualified and according to the exact terms of the offer. It is known as the mirror-image rule where acceptance reflects like a mirror to the terms of the offer. The term absolute and unqualified means that, the acceptance must be made without any condition or qualification. There Must Be Mutual Consideration Terms Used In California Civil Code 1585. Ultimately, there must be mutual assent or a "meeting of the minds" to form a contract. As is said in section 1585 of the Civil Code: "An acceptance must be absolute and unqualified, or must include in itself an acceptance of that character which the proposer can separate from the rest, and which will conclude the person accepting. 6. Acceptance sent through email; is the postal rule applicable? The acceptance must be within the prescribed time limit C. The acceptance must be unqualified D. The acceptance must be expressed in some usual and reasonable manner Q.5. Exercise of Right of First Refusal Must Be Unqualified to be Binding. 2] It has to be absolute and unqualified Acceptance must be unconditional and absolute. acceptance: An express act or implication by conduct that manifests assent to the terms of an offer in a manner invited or required by the offer so that a binding contract is formed. 2) Acceptance must be communicated to the . (Enacted 1872.) Facts : 'A' made a proposal to 'B' to sell a chair for Rs 5 0 0. It means that the acceptance must be unqualified and unconditional of all the terms stated in the offer. A qualified acceptance is a new proposal." The acceptance made by the offeree cannot be conditional. Section 9 of the Contracts Act, 1950 states that, so far as any acceptance . An acceptance with a variation, slight, is no acceptance, and may amount to a mere counteroffer (i.e.., original may or may not accept. What are the Rules of Valid Acceptance 1. Posted: January 10, 2015 / Categories Commercial, Contracts. (b) When the letter of acceptance is received by the proposer. Acceptance must be absolute. Indian Contract Act, 1872. Of course, the second party is free to propose a counter-offere.g., "What if I pay you $750 to paint my house instead of $1,000?"but that is not acceptance. 2] it's to be absolute and unqualified Acceptance must be unconditional and absolute. An acceptance must be an absolute and unqualified acceptance of all the terms of the offer: Sec.7(1). B says he accepts if A will sell it for 1500/-. Even the slightest deviation from the terms of the offer makes the acceptance invalid. In order to convert a proposal into a promise the acceptance must-. As acceptance, must meet the same terms of the offer to be valid, the . 6. It can be defined as "A positive act by a person to whom an offer has been made which, if unconditional, brings a binding contract into effect". Acceptance under the "mirror image rule" must be: O a. unequivocal. Acceptance under the "mirror image rule" must be: O a. unequivocal. Acceptance must be absolute. 7. When is the promise said to be express: A When the proposal or acceptance of any promise is made in words (3) by the failure of the acceptor to fulfil a condition precedent to acceptance; or (4) by the death or insanity of the proposer, if the fact of the death or insanity comes to the knowledge of the acceptor before acceptance. As such, there must be a matching offer and acceptance. Thus, a valid contract arises only if the acceptance is absolute and unconditional. There cannot be conditional acceptance, that would amount to a counteroffer which nullifies the original offer. In general or unqualified acceptance the drawee accepts the order of the drawer to pay the amount as specified in a bill in full, without any condition or qualification. In Neele v Meritt (1930 W N 189) Meritt offered land to Neele at $280. Any attempt to change the terms will be an implied rejection (Hyde v Wrench (1840) (HC)). If there is any condition or any alterations made in the offer then the alterations make the acceptance a counter-offer and the original offer gets nullified. Since Ali has been replied counter offer on condition that the car must be given a new coat of paintwork despite Ah Chong lower the cost of the car at RM28,000. If negotiation process is still ongoing, then an agreement cannot be considered has been formed. In order to convert a proposal into a promise the acceptance must-(1) be absolute and . The exercise of power conferred by an offer by performance of some act. a general offer to the public at large. Silence cannot be a mode of acceptance 6. November 21, 2021. Held there was no contract, as there was no unqualified acceptance. (c) Acceptance must be communicated to and received by the offeror. The act of a person to whom something is offered or tendered by another, whereby the . General or Unqualified Acceptance A general acceptance is absolute. Sec. It cannot be accepted by the other person without the consent of the offeror. absolute and unqualified: C. partial and unqualified: D. absolute and qualified: Answer b. . It must correspond with all the terms of the offer. (d) All the above. If the acceptance is made other than in words, the acceptance is said to be implied. Acceptance must be absolute and unqualified: Acceptance of a proposal with conditions variations and reservations is no acceptance at all. When is the promise said to be express: A. purchaser shall be obligated to accept in writing without qualification a satellite only if (i) the satellite has successfully passed the program test plan, (ii) it has been verified at the acceptance review that the satellite's service life will be at least twelve (12) years, ( iii) the satellite satisfies all the requirements specified in the For example if Aseema wants to sell her bike to Kartika for Rs. Rejection of an offer or a qualified acceptance or a variation of the terms . An acceptance must mirror the offer. Answer: Acceptance must be absolute and unqualified:Section 7 of the contract act, requires that acceptance must be absolute and unqualified. What is valid acceptance? Section 7 of the Contracts Act 1950 provides that in order to convert an offer into a promise, the acceptance must be absolute and Acceptance must be communicated by the offeree to the offeror in the manner requested by or implied in the offer. An acceptance is only contractually valid if the proposal to which response is made is an offer capable of acceptance. What is unqualified acceptance? Acceptance forms a clear indication of the offeree's commitment to the terms of the offer. Acceptance is a final and unqualified expression of assent to the terms of an offer [G.H. 2130, Civ. 2) Acceptance must be communicated to the offeror: (a) When the letter of acceptance is posted by the acceptor. On December 19, 2014, Justice Ramos of the New York County Commercial Division issued a decision in Bond & Broadway, LLC v.Funding Exchange, Inc., 2014 NY Slip Op. If there is a variation in the acceptance, the acceptance is not an acceptance, but a counter-proposal. Source: CivC 1877, 896; CL 1887, 3520; RCivC 1903, 1214; RC 1919 . allow us to see an example. 'B' expressed his desire to but the said chair for Rs 4 0 0. Conditional acceptance is no acceptance. Acceptance must be told to the offeror Section 7 of the Contract Act requires that the acceptance must be absolute and unqualified. An acceptance to be valid it must be obsolute and unqualified and in accordance with the exact terms of the offer. 7. (4) Acceptance should be expressed in some usual and and reasonable manner, unless the proposal prescribes the manner of acceptance. Whether the acceptance is express or implied, the main point is that it must be absolute (final) and unqualified in order to be effective. An acceptance of an offer is considered valid and effective if it is unconditional and unequalified, and explicitly communicated, via either written or verbal means, to the offeror. Acceptance should be properly conveyed and should be accepted by the person to whom the offer is made 2. Case Law: Union of India vs Bahulal In this case, X offered to sell his property to Y for 10 thousand rupees. In order to convert a proposal into a promise, the acceptance must- (1) be absolute and unqualified; (2) be expressed in some usual and reasonable manner, unless the proposal prescribes the manner in which it is to be accepted. It cannot be accepted by another person without the consent of the offer. Is The Contracts Act 1950 (Malaysia) Suitable on The Internet: A Critical Evaluation. According to Section 7 (2) of the Indian Contract Act, 1872, acceptance must be expressed in some general and proper manner, unless the offer determines how it is to be accepted. Acceptance is to offer what a lighted match is to a train of gun powder. There are some legal rules which make the acceptance effective so as to give rise to a valid contract. O c. in absolute agreement with each and every term of the offer. Acceptance must be an unqualified agreement to al the terms of the offer. Section 2(b) of the Act defines acceptance as follows: "When the person to whom the offer is made signifies his assent thereto, the proposal is said to be accepted ." The acceptance of the offer must be absolute and unqualified i.e. (b) Absolute & unqualified. A offers to sell his cycle to B for 2000/-. This is termed the "mirror image" rule. The rule of law is if you propose to make a contract with them B can't substitute himself for A without your consent. If the proposal prescribes a manner in which it is to be accepted, and the acceptance is not made in such manner, the proposer may, within a reasonable time after the . This statement indicates : A. Click to see full answer Thereof, what is the difference between offer and acceptance? A qualified acceptance is a new proposal. (3) Reasonable Time. Once an offer is accepted it results in binding contract: B. Communication of acceptance is necessary: C. Acceptance must be absolute & unqualified: D. All the above: Answer a.