Saturday, 20 August 2011

Acceptance must be Communicated

In order to form a binding contract between the parties, the acceptance of the proposal must be communicated to the proposer.

Section 7(b), Contracts Act 1950
provides that

"the acceptance may be expressed in some usual and reasonable manner,

unless the proposal
prescribes a manner in which it is to be accepted.

If the proposal prescribes a manner in which it is to be accepted, and the acceptance is not made in such manner, the proposer may, within a 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."

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