Introduction:
A wide range of contracts, from simple standard form purchase
orders to detailed, negotiated long form contracts often include
provisions where a party is considered to have accepted an order or
a set of terms and conditions, unless they communicate
non-acceptance within a stipulated timeframe. In such cases, the
contract requires no overt act of acceptance by the offeree and is
commonly referred to as 'deemed acceptance'.
In this article, we discuss the concept of 'deemed
acceptance', its validity under Indian law, and the
consequences of having such clauses in a contract.
Deemed acceptance under Indian Law:
The concept of 'deemed acceptance' under Indian contract
law raises questions about whether an agreement can be formed
without explicit or clear manifestation of assent by the offeree.
Acceptance, as an integral element of a contract, necessitates
clear communication of the intent to agree to the terms proposed by
the offeror, and must be
