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Case laws related to acceptance in contract

 Case laws related to acceptance in contract .

In the case of felthouse v. Bindley, it was made understood that silence is not acceptance.

An offer letter was sent offering to buy a horse owned by the defendant and also stated in that letter that, if you do not reply I will consider the offer as accepted.The person couldn’t reply because he was busy.

Plaintiff didn’t receive any reply from the other side and considered it as an acceptance and demanded for the horse but the defendant declined to sell the horse. Plaintiff approach to the court for the same .The court held silence cannot be considered as acceptance in this case.

Powell v. Lee

The one who initiates an offer is called an offerer . The one who is supposed to accept or reject the offer or who receives the offer is called an offeree

Powell Applied for a job as a headmaster in one of the schools and the school manager in the selection Board committee told powell that he has been selected but at that time the manager was outside his authority. It was an unofficial statement made by the manager.

The Board later selected somebody else

Powell approached the court for the same but the court held that the acceptance was not given by the offeree ( Board). So,it is not a valid contract.

Brogden v. Metropolitan Railway

Brogden made an offer in the form of a contract to Metropolitan railway Metropolitan railway amended the contract and made a counter offer.

The process of amending and sending back happened for a while but at one point the other party did not send acceptance but carried out business as per the terms of counter offer.

The court held that it was an implied acceptance as the date today activities and transactions are happening on the basis of that contract.

Silence does not amount to acceptance but the conduct and the behaviour of the person can be said as implied acceptance.

In the case of Dickinson v. Dodds

The defendant offered Dickinson to sell his house for £800 and even added that the offer is open till Friday.

The defendant sold the house to someone else on Thursday

Dickinson sued doddsfor the breach of contract as in his eyes the offer made to him was supposed to be valid till Friday but The house was sold to someody else on Thursday.

It was held by the court that keeping the offer open till Friday was just a promise, it would not amount to contract as there was no consideration or acceptance from the plaintiff side.

In the case of Bhagwandas Kedia v. Girdharlal and Co

Section 4 of Indian contract act says that and acceptance is said to be complete when it is put in a course of transmission .

Exception to section 4 in case of instantaneous communication,

In case of instantaneous communication the contract is complete only when the acceptance is received that is clearly heard and understood by the offer and the offer is deemed to be made at the place where acceptance is received or heard. (Acceptance by telephone).


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