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CMA Foundation · Fundamentals of Business Laws and Business Communication · Essential Elements of a Contract, Offer and Acceptance

Kapoor writes to Singh offering to sell a machine for ₹3,00,000 and adds, "If I hear nothing from you in seven days, I will take it that you have accepted." Singh does not reply and stays silent. What is the legal position?

No contract arises. Acceptance must come from an act or omission by which the offeree intends to communicate acceptance. A proposer cannot declare that silence will count as acceptance, so Singh's silence over seven days does not bind him to buy the machine.

  1. AThe proposer cannot impose silence as the mode of acceptance, so no contract arisesCorrect
  2. BA contract arises because the seven days have expired
  3. CA contract arises because Singh intended to accept silently
  4. DA contract arises only if Singh later uses the machine

Explanation

Acceptance is made by an act or omission by which the acceptor intends to communicate it. Singh, who did nothing, never intended to accept, and the proposer cannot force acceptance by silence on the offeree. So the lapse of seven days creates no contract; the second option wrongly makes time passing an acceptance.

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