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.

Explained:

Section 8 of the Indian Contract Act, 1872 deals with acceptance by performing the conditions of a proposal or by accepting consideration offered with a reciprocal promise. It recognises that acceptance of an offer does not always have to be communicated through words or writing. In appropriate circumstances, a person may accept an offer through conduct or performance.

The provision is particularly important where an offer invites a person to perform a specific act. Once the prescribed condition is performed, that performance may constitute acceptance of the proposal. For example, if a person offers a reward to anyone who finds and returns a lost item, returning the item in accordance with the terms of the offer can amount to acceptance.

Section 8 also covers situations where consideration for a reciprocal promise is accepted. Thus, acceptance can be inferred from conduct when the circumstances show that the parties intended to act upon the proposal.

Important Judgments

In Carlill v. Carbolic Smoke Ball Co. (1893), the court recognised that an offer made to the public could be accepted by performing the conditions stated in the offer. The case is a leading authority on acceptance by performance.

In Gaddar Mal v. Tata Industrial Bank Ltd. (1927), the principle of implied acceptance by performance under Section 8 was recognised, distinguishing an offer requiring a promise from an offer requiring performance of an act.

The Supreme Court in Bhagwandas Goverdhandas Kedia v. Girdharilal Parshottamdas & Co. (1965) discussed the principles governing acceptance and communication, and referred to offers where acceptance can occur through performance of the stipulated condition.

Therefore, Section 8 is significant because it recognises acceptance through conduct and performance, making contractual obligations enforceable even where the acceptance is not expressed through a separate verbal or written communication.