Contract offer and accpetancePresentation Transcript
Offer and Acceptance An agreement arises when one party makes an offerand the other party accepts it. When a person shows his willingness to do or not todo something to obtain the consent of other person ,it is considered a proposal. OFFER/PROPOSAL
Parties of the contractOfferor/Promisor:The person making the offer.Offeree/Promisee /Acceptor.The person to whom the offer is made is calledthe offeree.The person accepting the offer calledpromisee or acceptor.
Essentials of a Valid Offer1. An offer which is made by words spokenor written.An Offer appears from the actions, Conductof parties or circumstance of the case.
It must create Legal Relations. Parties intend to create legal relationsbetween the parties.
It May be specific or General Offer made to a specific person. A general offer is one which is made to publicin general. Can be accepted by any one.
It must be definite and clear Terms of offer must be clear. Not definite and clear , cannot be called validoffer.
It must be communicated Legally Effective only when it iscommunicated to the offeree. Brought to the knowledge/notice of offeree.It must not contain any negative condition.
It is different from Invitation tooffer. In invitation to offer ,the person makinginvitation does not make an offer but onlyinvites the other party to make an offer. A mere declaration of intention and not to aproposal. Prospectus issued by the University. Prospectus issued by the Company. Invitation to Bid, Price Tag display, catalogue.
REVOCATION OF OFFER.(Sec-6) Notice of Revocation: Notice of revocation Before acceptance. Lapse of Time. Terminate, when specified time is expired. Lapse of Reasonable time, depends uponthe circumstance of each case.
Failure to fulfill condition. Fails to fulfill the Condition mention it. Death or Insanity of the Offeror. Before acceptance, comes to knowledge ofacceptor. Revocation of offer by offeree. Offeree rejects the offer Communicate the rejection to the, offeror.(Period not Expire)
Subsequent illegality. Become illegal due to change of law before itsacceptance. Destruction of Subject matter. Subject matter of offer destroys before theacceptance.
Acceptance The person to whom the proposal is made Signifies his assent.
Essentials of Valid Acceptance It must be given by the Offeree. It must be Absolute and Unconditional It must be in Prescribed Manner It must be Communicated to the offerror.
It may be Express or Implied It must Follow the offer It must be given within reasonable time.
Conclusion Offer and acceptance are the two basicelements which comprise an agreement. Offer has no legal consequence or valueunless it is accepted. Formation of an agreement becomescomplete on the acceptance of offer.