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

Rao Enterprises proposes to sell a machine to Banerjee for ₹2,00,000, and the proposal says nothing about the manner of acceptance. Banerjee posts a signed letter of acceptance. Under Section 7, the acceptance must be expressed in which manner?

When the proposal prescribes no manner, acceptance must be expressed in some usual and reasonable manner. A signed letter sent by post qualifies, so Banerjee's acceptance is valid. The Act does not require oral words or a stamped written agreement.

  1. AOnly in the manner Banerjee prefers, even if unusual
  2. BIn some usual and reasonable mannerCorrect
  3. COnly by oral words in person
  4. DOnly through a stamped written agreement

Explanation

Where the proposal prescribes no manner, the acceptance must be expressed in some usual and reasonable manner. A signed posted letter is such a manner. Insisting on oral or stamped forms adds requirements the Act does not impose.

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