Certain things must be present in order for a contract and acceptance to be legal:
- The only person who can accept is the one who made the offer.
The only person who can accept an offer or plan is the person who made it in the first place. When someone accepts themselves, they only think about how the other person feels about them. Someone else can’t take the deal without telling the judge about it. If the person who made the offer has named someone to accept it on his account, that person’s acceptance is also acceptable.
Example: Shyam sold his business to Ketan, but he didn’t tell all of his creditors. Shyam’s debtor Ketan told him what to do. The things were received, and Ketan gave them to them. Because he still owed Shyam money, Ketan wouldn’t pay. The rule says that Ketan can’t take the offer because it was never made to him, so there is no contract.
- It has to be clear and unqualified.
Acceptance has to be pure and not limited. You can’t accept with conditions because that would be a counteroffer, and a counteroffer takes away the original offer.
For example, Y is given $10,000 in return for X’s motorbike. It’s agreed that Y will buy it if X sells it for 7000. This will be seen as a counteroffer instead of an acceptance of the offer.
- Acceptance needs to be shared.
A person who made the offer must admit it in order for it to be accepted and become a contract. Every offer must be accepted by the person who made it in order for it to be legally bound. Someone must know that they have been offered something before they choose to accept it or not. It’s not possible to say “yes” without knowing what the deal is. People must talk to each other in any way that is normally used in business.
For example, A sends B an offer letter to buy his car for three lakhs. B signs the contract but doesn’t answer the letter. In this case, acceptance has not been sent, so it is no longer valid.
- It has to be in the right mode.
The offer must be accepted in the way that the person making the offer says it must be taken. In the event that the method is not given, it must be one that can be used in everyday life. If the person who made the offer doesn’t say anything after it has been accepted in a different way, it will be taken that he agrees with that acceptance.
Example: X makes Y an offer of five lakhs to buy his car. He wants Y to send him a letter in response. Y writes to say that she agrees with his offer. If X doesn’t ask Y to send the response again in a certain way, that means X has accepted B’s answer.
- Acceptance in Thought (Implied)
Section 8 of the Indian Contract Act of 1872 says that steps taken by the promisee to accept are valid. Because of this, someone has impliedly accepted an offer if they do certain things that show they have accepted it.
Essentials of valid offer
The person who makes the offer is called the “offeror” or “promisor,” and the person who accepts the offer is called the “offeree” or “promisee”:
- An offer can be clear or not clear.
- An offer can be specific or broad.
- An offer must be made in order to start a binding relationship.
- An offer is different from a request to give.
- The person being offered something must be told about it.
- The terms of the deal must be clear and may include any of the following:
- An offer can come with conditions, and all of those conditions must be made clear along with the offer.
- There must not be any “negative” language in an offer. There shouldn’t be a condition in an offer that, if not met, would be the same as accepting it.
- Making plans to make an offer in the future does not mean that you actually make an offer.