Section 7 The Indian Contract Act, 1872

πŸ“œ Section 7 – Indian Contract Act, 1872

Title: "Acceptance must be absolute"

Text of Section 7:

β€œIn order to convert a proposal into a promise, the acceptance mustβ€”

be absolute and unqualified;

be expressed in some usual and reasonable manner, unless the proposer prescribes the manner in which it is to be accepted.
If the proposer prescribes a manner, and the acceptance is not made in that manner, the proposer may insist that his proposal shall be accepted in the prescribed manner; but if he fails to do so within a reasonable time after the acceptance is communicated to him, he accepts the acceptance.”**

βœ… Essentials of a Valid Acceptance (Section 7):

Absolute and Unqualified

Acceptance should match the offer exactly.

Counter-offers or conditional acceptance = rejection of offer.

Proper Manner of Acceptance

If the offeror specifies a method, the offeree must follow it.

If not followed, the offeror must object within a reasonable time, or it is treated as accepted.

πŸ“Œ Illustration:

A offers to sell his car to B for β‚Ή1,00,000.

B replies, "I will buy it for β‚Ή90,000." β†’ This is not acceptance, but a counter-offer.

If B says, "I accept your offer of β‚Ή1,00,000" β†’ This is valid acceptance under Section 7.

πŸ§‘β€βš–οΈ Case Law Example:

Felthouse v. Bindley (1862): Silence cannot be considered as acceptance.

Bhagwan Das v. Girdhari Lal & Co. (1966): Indian courts reaffirm that acceptance must be unambiguous and unconditional.

 

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