Acceptance: Sec 2(b)
The acceptance must be communicated to the offeror or his agent.
Only the acceptor must communicate (Section 4).
If any procedure was given by the offeror to communicate offeree’s acceptance, then it must
be communicated in the same way, unless until there’s a reasonable cause.
When the person to whom the proposal is made, signifies his assent there to this proposal is
said to be accepted. A proposal, when accepted becomes a promise.
Acceptance must be absolute and unconditional.
Neale V. Merret, 1930
Hyde V. Wrench, 1840
Communication by acceptor himself for acceptance can be given by the offeree and no one
else.
Boulton Jone, 19857
A, B, C are the Parties (Bockle horst, Hones, Boulton). A had a business, he used to supply
the goods demanded by B to B. Due to some circumstances A sold his business to C. B
ordered some goods thinking the owner is A. Since C received the order of demand of goods,
he supplied goods to B. Later B came to know about C. Since the transactions were made
between B and C, B didn’t pay the amount for the goods received. C filed the case against B
for the amount to be received for the goods supplied.
Held: There is no contract. Parties unknown to each other. Jones not liable to pay the
amount.
Powel V. Lee, 1908
(Acceptance must be given before the offer is revoked of offer lapses)
Some school authorities gave an advertisement for Head Master post. ‘A’ applied for it and
they selected him, but it was not conveyed to him, he knew it through his friend. Later, he
told the news to everybody. The very next day, the school authorities announced that some
other person was selected and appointed. So, ‘A’ filed a case against them.
The court held that since no official appointment letter was given there is no contract between
them and school authorities are not liable.
Acceptance by conduct (When communication not necessary)
Cartill V. Carbolic Smoke Ball Company
Acceptance by external manifestation or over
Brogden V. Metropolitan Railway Co.,1877
Brogden and sons used to supply coal to the railway co. There was an oral agreement
between them every time. Once, brogden proposed to have a written contractual document.
They made some new T & C and made a contract in a meeting Brogden & Sons hiked the
price. Railway Co. Asked to change the means of transportation. When they wanted to file a
case they should approach arbitrator as there was a arbitration clause in the contract. Due to
some differences between them Brodgen stopped supplying coal to Railway Co. And
Railway Co. Filed a case on Brogden & Sons. Brogden filed an appeal. Both the parties
signing the contract followed the new T & C for some time. Railway Co. Stated that there
was a standing offer in new T & C and Brogden can’t stop supplying coal.
Communication to offeror himself.
Felthouse V. Bindley, 1863
Offeror cannot impose the Burden of Refusal
Cotton Corporation of India Ltd. V. Bombay Dieing & Mfg Co. Ltd.,2006
Provisional acceptance no acceptance
Union of India V. S. Narayan Singh, 1953
Section 3 in the Indian Contract Act, 1872 (Communication, acceptance and revocation of
proposals)
Communication Section 4
Communication of offer and acceptance when complete
Laalman Shukla V. Gauri dath
R V. Clarke, 1927
William V. Carwardine,1833
Modes of Communication
Eliason V. Henshaw, 1819
Acceptance must be made in a prescribed manner.
When no manner prescribed usual and reasonable manner.
Postal Communication
Adams V. Lindsell, 1818
Household Fire & Accident Insurance Co. V. Grant, 1879
