Implied Acceptance Indian Contract Act

Implied Acceptance under the Indian Contract Act

In the Indian Contract Act, the concept of acceptance plays a vital role in the formation of a legally binding agreement. Acceptance refers to the unconditional agreement to the terms and conditions of an offer made by one party to another. While the act defines the rules for express acceptance, it also recognizes the concept of implied acceptance, which is often observed in everyday business transactions.

Implied acceptance refers to the acceptance of an offer that is not explicitly communicated through words or actions. In other words, it is an acceptance that is inferred from the conduct of the parties involved. It may arise in various situations, such as when a person continues to receive goods or services without objection, or when both parties have a mutual understanding of the terms of the agreement.

Section 7 of the Indian Contract Act defines acceptance as “when the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted. A proposal, when accepted, becomes a promise.”

This definition refers to express acceptance, where the acceptance is communicated through words or actions. However, the act recognizes that acceptance can also be implied. For example, if a person orders a product online and continues to use it without complaint, it is understood that they have accepted the terms of the purchase agreement, including the price, delivery time, and other conditions.

In the case of Boulton v. Jones (1857), the court held that acceptance can be implied if the offeree “does some act which is only consistent with an intention to accept.” This means that the conduct of the offeree must be such that it indicates their agreement to the terms of the offer.

It is essential to note that implied acceptance is only valid if the parties involved have a mutual understanding of the terms of the agreement. If there is any ambiguity or misunderstanding about the terms, the offer may be deemed invalid, even if the offeree continues to act in a manner consistent with acceptance.

Overall, implied acceptance plays a crucial role in the formation of contracts under the Indian Contract Act. It recognizes that contractual agreements can be formed through the conduct of the parties involved, even if there is no express acceptance communicated. However, it is important to ensure that there is a mutual understanding of the terms of the agreement for implied acceptance to be valid.