The Contract Act-1872

Offer and Acceptance

Who can accept?

An offer can be accept only by the persons for whom the offer is intended.

X sold his business to Y without disclosing the fact of his customers. Z sent an order for goods to X by name. Y received it and send sent a letter of acceptance. Held, there was no contract between Y and Z because Z never made any offer to Y. (Boulton V. Jones-1857) 

Rules regarding acceptance:

i)(i) It must be an absolute and unqualified acceptance of all the terms of the offer

ii)(ii) Conditional acceptance

iii)(iii) Contracts subject to condition

iv)(iv) Clarification

v)(v) The acceptance must be expressed in some usual or reasonable manner

vi)(vi) Mental acceptance or uncommunicative assent does not result in a contract.

vii)(vii) Time and mode of acceptance should clearly defined

viii)(viii) The acceptance must be made while the offer is in force. 

 

How is an offer to be communicated?

An offer may be communicated to the offeree by word or mouth, by writing or by conduct.

A written offer may be contained in a letter or a telegram.

A circular or advertisement or a notice may be written in such a language that it amounts to an offer.

A tramway car and a bus going alone a street and picking up passengers are examples of offers by conduct. 

Counter offer and mental acceptance:

X offers to sell his house for Tk 120,000. Y said “accepted for Tk 100,000”. This is not an acceptance but a counter offer or counter proposal.

F offered to buy B’s horse for Tk 2,000, saying, “if I hear no more about him I shall consider the horse as mine at Tk 2,000.” B did not reply. Held, there was no contract because there was no communication of acceptance. Mental acceptance does not result in a contract