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The meaning of "That's fine" can be different in different cultures. Here in Australia, in the context you've described, it doesn't have to have a negative tone.
Use “That’s fine” when you want to agree with or accept a specific request or suggestion. Use “It’s fine” when you want to express that everything is generally okay, even if something specific was not mentioned.
Learn the correct usage of "it's ok" and "that's fine" in English. Discover differences, examples, alternatives and tips for choosing the right phrase.
Use “that’s fine” to mean you don’t agree, but you’ll go along with it. Try using “that’s fine” if you’re not completely happy with a situation but are willing to accept it or move forward to avoid conflict.
I would say you need it's/that's in your first example because you are referring to a specific thing (the proposal). In the second case you are being asked how you feel about something (we have no idea what) , so 'fine' is the right answer.
“That’s fine” is just one of many phrases you can use to acknowledge a point or situation. By using synonyms, you can add variety and nuance to your language while still conveying the same basic message.
Monday is fine means you are happy with it. Monday is okay means you accept the date, but does not say you are happy. As a guest, don't say the food is okay if you want to be invited back.
“That’s fine” is often used when referring to a specific thing or situation, emphasizing a particular object or event. On the other hand, “it’s fine” is more general, conveying an overall sense of acceptance or approval.
In modern American English, ‘That’s fine’ is commonly used to express agreement or acceptance. Here are some situations where you can use ‘That’s fine’ appropriately: When someone asks for your permission to do something, and you have no objection to it, you can respond with ‘That’s fine.’.
Both phrases are used to indicate that something is acceptable or okay. However, ‘that’s fine’ is usually used to refer to a specific thing or situation, while ‘it’s fine’ is more general and can refer to anything. Both phrases are correct and commonly used in everyday speech.