Features of a Contract

2. Essential Features of a Co

There are certain elements that must be present in a contractual relationship to make it enforceable. They

a. Offer and Accep

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 a
person to whom such offer/proposal is made is called offeree. An offeree becomes a promisee as soon as he accepts the proposal. Section
the Indian Contract Act, 1872 defines proposal as: " When one person signifies to another his willingness to do or to abstain from doing an
with a view to obtaining the assent of that other to such act or abstinence, he is said to make a prop

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 o
implied. Section 2(b) of the Indian Contract Act states "When the person to whom the proposal is made signifies his assent thereto, the prop
said to be accepted. A proposal, when accepted, becomes a pro

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 expres
some usual and reasonable manner, unless the proposal prescribes the manner in which it is to be accepted. If the proposal prescribes a m
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 accepta
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 acce
acceptance."

Thus, the essentials of a valid acceptance are:

 Acceptance must be absolute and unconditional. ·

 Acceptance must be communicated. Such communication need not be in writing or by words spoken, but may also be implied
desire to accept a proposal without proper communication of the same is not acceptance. ·
 Acceptance must be in the mode prescribed by the offeror. ·
 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

Section 4 of the Contract Act states "The communication of a proposal is complete when it comes to the knowledge of the person to who
made." Section 8 of the Act states "Performance of the conditions of a proposal, or the acceptance of any consideration for a reciprocal p
which may be offered with a proposal, is an acceptance of the prop

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 can
recalled or undone."

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