Legal Guide

What is Section 7 of the Indian Contract Act?

by Bhavya Choudhary · 4 min read

Section 7 of the Indian Contract Act

Introduction

In Section 7 of the Indian Contract Act, there is an explanation of the term ‘acceptance,’ which is specified as whether it is valid or invalid. 

  • The contract starts with an invitation to offer, then acceptance of the offer, that is, the promise, then it becomes agreement on agreeing on the same promises.  
  • The agreement thus becomes legally enforceable, which is a contract. 
  • But what is the need for Section 7 of the Indian Contract Act? We will see in detail- Often, the legal issues and service agreements related to contract law are subject to legal advice beforehand. 

What is a Contract?

  • The Indian Contract Act of 1872 talks about the legislation revolving around contract law in India. This act makes all the contracts in the country an agreement that is enforceable by law. 
  • If we go deep into the meaning of the term agreement, we will observe that it talks about the free consent and will of two parties on the same topic of performance or promise; the two parties together form a contract with the objective of lawful consideration in return. 
  • The issues of contract laws in society are always a source of learning for legal consultancy services. 

What is the rationale behind the concept of Acceptance?

To make a contract an agreement, there is always one party that makes the offer or a proposal, and the other party has to give their free consent or acceptance for the fulfillment of that agreement; the consent can be expressed or implied. 

  • But before the formation of the agreement, the concept of Promise came under action.
  • The promise is the acceptance of the offer or the proposal as per section 9 of the Indian Contract Act. 
  • Section 7 of the Indian Contract Act talks about the same.

Concept of Valid Acceptance

Section 7 of the Indian Contract Act talks about the concept of valid acceptance; acceptance becomes valid only when there is a valid offer. Section 7 of the Indian Contract Act talks about the conditions which have to be checked to make an acceptance valid. Otherwise, it will be invalid. 

Section 7 of the Indian contract act talks about the essential conditions:

  • An acceptance should be absolute, 
  • It should be unqualified, which means it should come from free choice and will,
  • The expression of acceptance should be explicit or implied,
  • If any condition is made in the proposal, then it should be contented.

What are the essentials of Valid Acceptance as per Section 7 of the Indian Contract Act? 

1.Absolute and unqualified

  • It discusses the idea of unconditional, absolute acceptance.
  • A counter-offer might be any adjustment or requirement in the offer as per Section 7 of the Indian Contract Act. Acceptance of the offer cannot be contingent upon anything, nor may it be modified after acceptance.

2.Intention

  • The promisee must be capable and eager to keep their word. 
  • The acceptance is unlawful if the promisee seems to have no intention of keeping their word as per Section 7 of the Indian Contract Act.

3.Communication

  • The offeree must inform the person offering of his acceptance for it to be considered valid.
  • The message may be explicitly stated or implicit. 
  • However, if the offer requires an action by the offeree, the offer is deemed accepted upon that action alone as per Section 7 of the Indian Contract Act.

4.Mode of expression

  • Mode of expression should be expressed or implied, or whatever way is said to be in the offer itself; the offer must be accepted in the way described in the mode of communication.
  • If the method of acknowledgment is left unspecified, it may be communicated in a customary and sensible manner as per Section 7 of the Indian Contract Act.

5.Silence

Mere silence cannot be the answer to anything; the same goes with the concepts of contracts, too, as silence alone does not imply acceptance. The offeror is not permitted to mention silence as a means of acceptance as per Section 7 of the Indian Contract Act.

6.Time

The time period should be fixed; the acceptance should be done in that time period only as per Section 7 of the Indian Contract Act. 

7.Before and After of offer

Acceptance can happen only after an offer has been sent, not before it, as per Section 7 of the Indian Contract Act. 

8.Authorization

The authority to accept and give acceptance to it lies with the person to whom the offer or the proposal has been sent. 

9.No Acceptance 

If the offer is not accepted, it is called a no acceptance. 

10.Agent

An offer sent by an agent is also an offer and, if accepted, then is a valid one as per Section 7 of the Indian Contract Act. 

Conclusion

The contract and the service agreement are dealt with in the contract law, which is subject to legal advice. Section 7 of the Indian Contract Act talks about the valid and invalid essentials of valid acceptance. The article tries to put light on the validity of the acceptance of the offers. 

Section 7 of the Indian contract act about the concept of valid acceptance the acceptance becomes valid only when there is a valid offer. Consult a professional to know how to enter into a contract.

Bhavya Choudhary

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Bhavya Choudhary

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