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

Under the Indian Contract Act, 1872, in order to convert a proposal into a promise, the acceptance must be:

Acceptance must be absolute and unqualified to turn a proposal into a promise. Any condition or variation means the proposal has not been accepted as made. The Act also requires a usual and reasonable manner, but it does not insist on writing or on an agent.

  1. AAbsolute and unqualifiedCorrect
  2. BConditional upon the proposer's later approval
  3. CGiven only in writing
  4. DGiven only by the proposer's agent

Explanation

Section 7 requires that acceptance be absolute and unqualified, and expressed in a usual and reasonable manner unless the proposal prescribes a manner. A conditional response is not acceptance. Writing is not mandatory, since acceptance may be by words or conduct.

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