1. What is acceptance?

An acceptance is the assent to the offer made by the person to whom the offer is
proposed.

2. What are the features of valid acceptance ?

i)Communication to the Offeror:

When an offer is accepted, that acceptance must be communicated to the

Offeror.
This communication must be only by the Offeree or by a person authorised by
the Offeree.
An exception to this is when the Offeror has said that communication of
acceptance is not necessary or when the offeree does something to clearly
indicate that he accepts. For example, A makes an offer stating that he will
give the person who finds and returns his purse Rs. 50/-. When a person finds
and returns the purse, he has acted on the offer. Because he has acted on the
offer, he is said to have accepted it.

ii) Made by the Offeree :

An offer can be accepted by the Offeree only. If the offer is towards a specific
person only that person can accept and if it is a general offer any or all the
recipients of the offer can accept.

iii) Acceptance must be given after the offer is made and not before.

iv) Acceptance must be given within the stipulated time period (or if there is no
stipulated time, within a reasonable time period). Acceptance must also be given
before the offer lapses or is revoked by the Offeror.

v)Acceptance must be communicated

usual or reasonable manner.

in the manner prescribed or in the

vi)Acceptance must not be conditional. When an Offeree says that he accepts but
only on certain conditions, it is not acceptance but a counter offer made by the
Offeree.

vii)Once the offer is rejected it cannot be accepted unless the offer is renewed by
the Offeror.

3. Is there any prescribed manner for acceptance ?

Acceptance can be express or implied.

In the case of cross offers, the court cannot construe one offer as the offer
and the other as acceptance and as such there is no contract.
A counter offer, on the other hand is a rejection of the original offer. It is a
new offer that needs acceptance by the original promisor before a contract is
made.Wrong mode of acceptance :
Offers have to be accepted in the usual or customary manner. However, if
the contract specifies a particular mode of acceptance, the offer lapses if it is
not accepted in that manner}.
Rejection by the Offeree :If an Offeree refuses to accept the offer, the offer
lapses. Once he rejects the offer expressly, the Offeree cannot accept it later.

Counter offer or conditional acceptance :

When an Offeree makes a counter offer or says that he accepts but only on
certain conditions, the offer lapses. This is because a counter offer or
conditional acceptance implies that the original offer is rejected. For example,
A offers to sell his motorcycle to B for Rs.18,000/-. B says that he will
purchase the motorcycle for Rs.15,000/-. Here,A's offer has been rejected by
B and B has made a counter offer.
Death or insanity of any of the parties : If the Offeror dies or becomes insane
before the offer is accepted, the offer lapses. However, if the Offeree accepts
the offer without knowing of the Offerors death or insanity, the acceptance
will be valid.