There are certain elements that must be present in a contractual relationship to make it enforceable. They are:
a. Offer and Acceptance
The first step to form a contract is an offer and its proper acceptance.
The person making the offer/proposal is called the offeror/promisor and the person to whom such offer/proposal is made is called offeree. An offeree becomes a promisee as soon as he accepts the proposal. Section 2(a) of the Indian Contract Act, 1872 defines proposal as: " When one person signifies to another his willingness to do or to abstain from doing anything, with a view to obtaining the assent of that other to such act or abstinence, he is said to make a proposal."
An acceptance is an expression of unqualified and unconditional conformity to all the terms set out in the offer. It can be oral or in writing or even implied.
Section 2(b) of the Indian Contract Act states "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."
Section 7 of the Act states "In order to convert a proposal into a promise, the acceptance must-1) be absolute and unqualified, 2) be expressed in some usual and reasonable manner, unless the proposal prescribes the manner in which it is to be accepted. If the proposal prescribes a manner in which it is to be accepted, and the acceptance is not made in such manner, the proposer may, within a reasonable time after the acceptance is communicated to him, insist that his proposal shall be accepted in the prescribed manner, and not otherwise; but if he fails to do so , he accepts the acceptance."
Thus, the essentials of a valid acceptance are:
Acceptance must be absolute and unconditional.
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Acceptance must be communicated. Such communication need not be in writing or by words spoken, but may also be implied. Mere desire to accept a proposal without proper communication of the same is not acceptance.
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Acceptance must be in the mode prescribed by the offeror.
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Acceptance must be given within the prescribed time or in absence of such time, it must be within a reasonable time.
There can be no acceptance unless there is proper knowledge of the offer.
Section 4 of the Contract Act states "The communication of a proposal is complete when it comes to the knowledge of the person to whom it is made."
Section 8 of the Act states "Performance of the conditions of a proposal, or the acceptance of any consideration for a reciprocal promise which may be offered with a proposal, is an acceptance of the proposal."
Thus, in the words of Anson, "Acceptance is to an offer what is lighted match is to a train of gunpowder. It produces something which cannot be recalled or undone."
