Acceptance (ss. 2(b), 4, 5, 7-9): essentials, communication, the postal rule and instantaneous communication, revocation of acceptance, tenders and auctions
LUG-103 Law of Contract including Specific Relief Act & Sale of Goods Act, Unit I: Acceptance: · LLB · 60 min
This lecture covers topics 8 to 11 of Unit I: the definition of acceptance in s. 2(b), the essentials in s. 7 (absolute and unqualified, in the usual or prescribed manner, within time), who may accept, acceptance by conduct and performance under ss. 8-9, the rule that silence is not acceptance (Felthouse v. Bindley), the communication of acceptance under s. 4 with the postal rule (Adams v. Lindsell, Household Fire v. Grant) and the receipt rule for instantaneous communications (Entores, Bhagwandas Kedia), e-mail under the IT Act, the Indian departure that allows an acceptance to be revoked under s. 5, and the position of tenders and auctions.
Objectives
- Define acceptance under s. 2(b) and state the essentials of a valid acceptance under s. 7 with a case for each
- Explain acceptance by performance and by conduct under ss. 8-9 and why silence cannot be acceptance
- State when the communication of an acceptance is complete as against the proposer and as against the acceptor under s. 4, and apply the postal and receipt rules
- Contrast the Indian rule on revocation of acceptance (s. 5) with the English postal rule
- Apply the rules to tenders, auctions and e-mail contracts
Slides
- What s. 2(b) says: acceptance turns a proposal into a promise
- Essentials of a valid acceptance: s. 7 and the cases (2022-23 Q2(a), 2024-25 Q1(b))
- Acceptance by performance and by conduct: ss. 8 and 9 (2017-18 Q(A)4)
- Silence is not acceptance: Felthouse v. Bindley
- Communication of acceptance: s. 4 and the Act's illustrations (2018-19 Q(B)1, 2022-23 Q2(b))
- The postal rule: Adams v. Lindsell and Household Fire v. Grant
- Instantaneous communications: Entores and Bhagwandas Kedia; e-mail and the IT Act
- Revocation of acceptance: s. 5 and the Indian departure
- Tenders and auctions (topic 11)
- How the examiner asks it
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