ACCEPTANCE

When the person to whom the proposal is made signifies his assent, it is an acceptance of the proposal. An acceptance proposal is called a promise or an agreement. [Section 2 (B)] An application for the shares in a company is in the nature of offer while the allotment of the shares by the company is an acceptance resulting into a contract.

Example: A offers to sell his horse to B for Rs. 500. B accepts the offer to purchase the horse for Rs. 500. This is acceptance.

Acceptance may be express or implied. When acceptance is made by words, spoken or written, it is an express acceptance. If it is accepted by conduct, it is an implied acceptance. Thus where a person boards a train or bus, he impliedly accepts to pay the usual fare.

Who may accept? An offer can be accepted only by the person to whom the offer is made. It means that the person to whom the offer is made can alone accept it. It cannot be accepted by another person without the consent of the person making it.