ASSIGNMENT TITLE:

Acceptance to an offer is what a lighted matchstick to a train of gunpowder.

SUBMITTED TO: SIR JAVAID IQBAL BANDEY

SUBMITTED BY: ASMA MASOOD

SUBMISSION DATE: 19-03-2013

COURSE: BUSINESS LAW

SESSION: 2011-2015

ACCEPTANCE TO AN OFFER IS WHAT A

LIGHTED MATCHSTICK TO A TRAIN OF

GUN POWDER.COMMENT.

ANS: The above statement is basically an analogy i.e. it is a comparison of two different

phenomenons that are similar in some way. The two important or main phenomenons in this

statement are “offer” and “acceptance”. To understand the meaning of

this analogy it is important to know what an offer and acceptance is.

They are briefly defined under the contract act as:

OFFER: (Contract Act 1872)

Offer is also termed as “proposal”. it is defined as “when one person

signifies to another person his willingness to do or not to do something

with a view to obtain the assent of the other person, he is said to make a

proposal”

ACCEPTANCE: (Contract Act 1872)

“A proposal is said to be accepted when the person to whom the proposal is made signifies his

assent thereto. A proposal when accepted becomes a promise.”

Both of these definitions show the importance of offer and acceptance. The above statement or

the analogy depicts the situation related to revocation or cancellation of the proposal or an offer

and an acceptance.

It describes that when an acceptance is being made, against an offer, it becomes mandatory for

the first party to fulfill his promise. Therefore such an acceptance produces something which

cannot be recalled or reversed.

Upon analyzing this statement, it can be seen that gunpowder is the offer and lighted matchstick

is acceptance. If a lighted matchstick is placed or brought near a train of gun powder disaster or

explosion takes place which couldn’t be undone or reversed. Similarly when an acceptance is

being made, in response of an offer it cannot be revoked r cancelled. On the other hand, if a

lighted matchstick is not brought near a train of gunpowder nothing serious or disastrous would

occur. This implies that 1st party can revoke or reverse the offer before it is being accepted.

If we analyze “offer” and “acceptance” separately, they cannot lead to the formation of contract.

But whenever a valid offer is supported by acceptance, this leads to such a contract which is

valid and enforceable by law. The statement or analogy consists of “gunpowder” and “lighted

matchstick” which are “offer” and “acceptance” respectively. These two things help us to know

the importance of accepting an offer. The gunpowder if placed separately cannot be exploded.

But it can explode or burst if a lighted matchstick is brought near it. Likewise if offer is made

and it is being accepted it becomes compulsory to be fulfilled and it couldn’t be revoked by

anyone.

However there could be certain restrictions or limitations to this offer and acceptance binding.

Those limitations could be that the gunpowder or offer lacks any of its elements or the lighted

matchstick becomes wet or it might happen that the gunpowder becomes damp or wet or the

person who has laid the train or has made the acceptance removes it… in all these situations

there would be no explosion. This means that an offer can only be cancelled prior to its

acceptance. Hence it can be said that it becomes very difficult to revoke an offer when it is

accepted. There are few ways in which an offer can be revoked:

By notice

By death or insanity of offeror

By lapse of time

By counter offer

Due to change in any law etc

Apart from these ways, there is no other solution of revoking the offer. Hence it becomes a

binding on the first party who is the offeror to fulfill his promise. If not then penalties would be

imposed upon him under the law.