Read the given paragraph carefully and answer given question:

Contracts are the important part of commercial law because all commercial transactions usually begin with an agreement or a contract.

Business transactions involving sale-purchase or exchange of services have become an integral part in day-to-day activities. In such instances, an agreement or a contract is necessary for determining the rights, obligations and liabilities of parties when they enter into any business transaction. The Indian Contract Act is the law governing contracts in India.

An assent given to an offer by the offeree is known as ______ under Indian Contract Act 1872.

acceptance

The correct answer is Option (3) → acceptance

Under the Indian Contract Act, 1872, acceptance refers to the assent given by the offeree to the terms of the offer made by the offeror. Acceptance indicates the offeree's agreement to the terms of the offer, thereby forming a contract. Without acceptance, there is no binding agreement between the parties.