In order to convert a proposal into a promise the acceptance must—
(1) be absolute and unqualified;
(2) be expressed in some usual and reasonable manner, unless the proposal prescribes the manner in which it is to be accepted. If the proposal prescribes a manner in which it is to be accepted, and the acceptance is not made in such manner, the proposer may, within a reasonable time after the acceptance is communicated to him, insist that his proposal shall be accepted in the prescribed manner, and not otherwise; but, if he fails to do so, he accepts the acceptance.
Legal Commentary & Landmark Judgments: Section 7
Section 7 of the Indian Contract Act, 1872 mandates that acceptance must be absolute, unqualified, and expressed in some usual and reasonable manner in order to convert a proposal into a binding contract.
Sub-section (2) provides that if the proposer prescribes a particular manner of acceptance, acceptance must follow that mode; if the acceptor deviates, the proposer must insist within a reasonable time, failing which the deviated acceptance is deemed validly accepted by acquiescence.
Commercial contracts frequently fail at the formation stage due to 'battles of the forms', where purchase orders and sales acknowledgments contain conflicting standard terms. Under Section 7, each conflicting response is a counter-offer rather than an acceptance, precluding contract formation until one party unequivocally assents to the other's terms by performance or signature.