Acceptance-IISujith

Prescribed manner of acceptanceThe acceptance must be communicated in the

prescribed manner.Mode prescribed:

Must be Lawful Should not be silence on the part of the offeree.

Effect of deviation from the prescribed manner:Does not result in the valid communication of

acceptance.Particularly, when it does not reach before the

manner prescribed would have normally reached.

When acceptance communicated in different manner reaches before the manner prescribed would have reached:Three perspectives

The autonomist perspective The rationalist perspective The subjectivist perspective

The Autonomist perspective the proposer’s autonomy is given importance.This perspective does not tolerate any

deviation from the prescribed mode of communication.

Criticism- “repugnant to common sense” Rigid and dogmatic.

Rationalist PerspectiveMere mention of manner of communication can

not ipso facto be regarded as prescription.Concerns with the impact of the deviation

rather than the deviation itself.It makes an objective inquiry into whether, due

to deviation, the proposer was put in any disadvantageous position or not?

If not, the deviation will not upset the acceptance.

Subjectivist perspectiveThe proposer reserves the discretion to validate

or invalidate the acceptance.Indian position

Sec 7 (2)- “If The proposal prescribes the manner in which it is to be accepted, and the acceptance is not made in such a manner, the proposer may, within reasonable time after the acceptance is communicated to him, insist that his proposal shall be accepted in the prescribed manner, and not otherwise, but if he fails to do so, he accepts the acceptance.”

Thus a departure from the prescribed manner itself will not invalidate the acceptance.

The Indian law cast a duty upon the proposer to reject such acceptance and insist on fresh acceptance in the prescribed manner.

If he fails to do so , he will be deemed to have waived his demand and becomes bound by such acceptance.

The risk of deviation is on the proposer as per the Indian law

It does not permit him to declare that the acceptance is invalid due to deviation.

The acceptance will be valid also if he fails to respond with in a reasonable time after receiving the deviated acceptance.

Thus the subjectivity perspective is not applied in totality in Indian law.

It leaves the discretion to the proposer but a failure on his part to exercise it makes him bound by the acceptance.

It gives room for foul play.Acceptor can get more timeProposer can revoke the proposal before

acceptance.

When the communication is completeTheories as to the point of time when the

communication is said to be complete:Declaration theoryExpedition theoryReception theoryInformation theory

Declaration theoryContract comes into existence the moment the

offeree declares that he accepts the offer.Whether it has come to the notice of the offeror

or not, is immaterial.Expedition theory

Contract is complete the moment the offeree does the action necessary to communicate his acceptance.

Whether it has come to the notice of the offeror or not, is immaterial.

Reception theoryContract is complete the moment the

acceptance is received by the offeror.Whether he has read it or not is immaterial.This theory takes into consideration the

possibility of loss in transit.

Information theoryA contract is complete only when the acceptance

comes to the actual knowledge of the offeror.Indian lawSection 4: The communication of an acceptance

is complete -as against the proposer, when it is put in a course of transmission to him so as to be out of the power of the acceptor; as against the acceptor, when it comes to the knowledge of the proposer.

As against offeror- Sec. 4 – Expedition theory As against offeree- Sec.4 - Information theory