1.
Introduction
An
important essential of a contract is that parties to the contract should have
reached agreement. Generally speaking, an agreement is made when one party
accepts a proposal, which is made by other party. It means that proposal and
acceptance are very important as far as making of a contract is concerned.
2.
Definition of Proposal
Proposal
is the first as far as process of making a valid contract is concerned.
Literally proposal means act of offering or suggesting something for
acceptance. As a legal term, proposal can be defined as presentation of
willingness by one person to another person for doing or abstaining from doing
something so as to obtain the assent of the second person to such act or
abstinence.
3.
Definition of Acceptance
When
a person makes proposal to another person and this another person accepts
proposal, then it is said that proposal has been accepted and such acceptance
of proposal is called acceptance.
4. Essentials of Valid Acceptance
Followings
are main essentials of a valid acceptance.
i.
Free Consent
It
is essential for a valid acceptance that it should be made through free
consent.
ii.
Correspondence between Proposal and Acceptance
It
is necessary that there should be correspondence between proposal and
acceptance.
iii.
communication of Acceptance
It
is important that acceptance should be communicated through some usual and
reasonable manner.
iv.
Unconditional Acceptance
It
is essential that acceptance should be unconditional.
v.
Absolute Acceptance
It
is necessary that acceptance should be absolute.
vi.
Acceptance before Revocation of Proposal
It
is important that acceptance should be made before revocation of proposal.
vii.
Who can make Acceptance
It
is essential that acceptance should be made by such party to whom proposal is
made.
viii.
To whom acceptance can be made
It
is necessary that acceptance should be made by one party to another party. In
other words, a party cannot accept his own proposal, but other party should
make acceptance of his proposal.
ix.
Same Meeting
It
is important that acceptance should be made in the same meeting in which
proposal has already been made.
5. How is communication of acceptance complete?
Communication
of acceptance is considered completed in comparison of proposer and acceptor
through following two ways.
i.
Communication to Proposer
Communication
of acceptance is complete against proposer when it is put in a course of communication to him and it becomes out of the power of the acceptor.
ii.
Knowledge of Proposer
Communication
of acceptance is complete as against the acceptor, when it comes to the
knowledge of the proposer.
6. Revocation of Proposal and Acceptance
It
has been settled in contract Act that proposal and acceptance can be revoked.
Following points are important as far as revocation of proposal and acceptance
is concerned.
i.
Revocation of Proposal
A
proposal can be revoked at an time before the communication of its acceptance
is complete as against the proposer, but not afterwards.
ii.
Revocation of Acceptance
An
acceptance can be revoked at any time before its communication is complete as
against the acceptor, but not afterwards.
iii.
Ways for Revocation of Proposal
A
proposal can be revoked through following four ways
a.
Communication of Notice
A
proposal can be revoked by communication of notice of revocation by the
proposer to the other party.
b.
Lapse of Time
A
proposal can be revoked by lapse of time, which is prescribed in the proposal
for its acceptance. However, if no such time is prescribed in the proposal,
proposal can be revoked by lapse of a reasonable time, during which its
acceptance is not communicated.
c.
Failure of acceptor
A
proposal can be revoked by the failure of acceptor to fulfill a condition
precedent to acceptance.
d.
Death of Insanity of Proposer
A
proposal can be revoked by the death or insanity of proposer, if fact of his
death or insanity comes to the knowledge of acceptor before acceptance.
Finial
Analysis
To
conclude, it can be stated that conditional proposal is not convenient for
making of contract. The reality is that such proposal cannot be accepted
because such proposal is itself rejection of proposal.
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