lecture-04 - LESSON 4 ACCEPTANCE OF AN OFFER Learning...

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Learning Outcomes After today’s class you should be able to answer the following questions: · The meaning of acceptance · The essentials elements of acceptance · The communication of an acceptance Introduction Today first we will start with the meaning of acceptance A contract as already observed, emerges from the acceptance of an offer. Section 2(b) states that “ A proposal when accepted becomes a promise” and defines ‘ acceptance’ as “ when the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted.” Thus, ‘ acceptance’ is the manifestation by the offeree of his assent to the terms of the offer. Thus there are two essential requirements of a valid acceptance · Firstly the offeree to the offeror should communicate acceptance. · Secondly, acceptance should be absolute and unqualified. Legal Rules Regarding a valid Acceptance A valid acceptance must be in conformity with the following rules. 1. Acceptance 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. It cannot be accepted by another person without the consent of the offeror. The rule of law is clear that “ if you propose to make a contract with A. then B can’t substitute himself for A without your consent.” An offer made to a particular person can be validly accepted by him alone. Similarly an offer made to a class of person s (i.e., teachers) can be accepted by any member of that class. An offer made to the world at large can be accepted by any person who has knowledge of the existence of the offer. Let us suppose A sold his business to his manager B without disclosing the fact to his customers. C, a customer, who had a running account with A, sent an order for the supply of goods to A by name. B received the order and executed the same. C refused to pay the price. It was held that there was no contract between B and C because c never made any offer to B and as such C was not liable to pay the price to B (Boulton vs. Jones). I will give you another example. In Felthouse vs Bindley the nephew intended his uncle to have the horse but had not communicated this to the uncle, instead he told the auctioneer not to sell the horseas it was already sold to his uncle. It was thereby held that the communication to a stranger like the auctioneer in this would not do. A communication to any other person is no communication in the eyes of law. The offeror cannot say that if no answer is received in a certain time the offer is deemed to be accepted. Mere silence is no acceptance of the offer. 2. Acceptance must be absolute and unqualified [sec. 7(1)]. In
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This note was uploaded on 09/27/2011 for the course BUS 100 taught by Professor Sherry during the Spring '11 term at Faculty of English Commerce Ain Shams University.

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lecture-04 - LESSON 4 ACCEPTANCE OF AN OFFER Learning...

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