Acceptance meaning and the essentials of valid acceptance are explained in the Indian Contract Act, 1872. The offer and acceptance play an important role in the formation of a contract.

Acceptance in contract law definition is given under section 2 (b) of the Indian Contract Act, Acceptance means, "When the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted. The proposal when accepted becomes a promise."

Essentials of a Valid Acceptance 1. Acceptance must be given by the party to whom the offer was made 2. The acceptance must be communicated with the offeree 3. Acceptance must be absolute and unconditional 4. Acceptance must be in the prescribed mode and prescribed time

1. Acceptance must be given by the party to whom the offer was made The acceptance can be given only by the party to whom the offer is made. No other person can give that acceptance to an offer to whom it is not made. In case of a specific offer, the persons to whom the offer is made only he can accept that offer.

2. The acceptance must be communicated with the offeree When the offer is made to enter into a contract, the offeror's acceptance must be communicated with the offeror to constitute a valid contract. Without fulfilling conditions prescribed by the offeror there will not be a valid contract. And, mere acceptance without any communication with the offeror does not constitute a valid contract.

Mere silence does not amount to valid acceptance. In the case of Powell v/s Lee, 1908. Plaintiff made an application to be appointed as headmaster. Appointing authority passed one resolution appointing the plaintiff but this was not communicated with the plaintiff. Later, the appointing authority cancelled the resolution and it came to the knowledge of the plaintiff. The plaintiff filed a suit for breach of contract.

3. Acceptance must be absolute and unconditional According to section 7 (a), to constitute an offer into a valid promise, the acceptance must be absolute and unconditional. This means the acceptance is given to the offer must be without imposing any condition which leads to a counter-offer to the original offer.

4. Acceptance must be in the prescribed mode and prescribed time According to section 7 (b), the acceptance must be given in the prescribed mode and with the offeree's prescribed period. And, if the offer does not prescribe any manner of acceptance or prescribed time limit, then the acceptance to the offer must be given in a reasonable manner and within a reasonable time period.