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

Verma Textiles proposes to sell fabric to Joshi and states that acceptance must be sent by registered post. Joshi sends his acceptance by ordinary email, and Verma does nothing for several weeks. Under the Act, what is the position?

Verma is taken to have accepted the acceptance. When a proposal prescribes a manner of acceptance and it is not followed, the proposer must insist on the prescribed manner within a reasonable time after communication. Failing to do so, Verma is bound by Joshi's email acceptance.

  1. AVerma may reject the acceptance at any time, even after weeks
  2. BThe acceptance is void because the prescribed manner was not followed
  3. CVerma, by failing to insist within a reasonable time, is taken to accept the acceptanceCorrect
  4. DJoshi must repeat the acceptance by registered post to bind Verma

Explanation

Where the manner prescribed is not followed, the proposer may within a reasonable time after the acceptance is communicated insist on the prescribed manner. If he fails to do so, he accepts the acceptance. Verma's long silence means he is bound; the 'void' option ignores this waiver.

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