law

1. Presented by
Ayesha Ahmareen BL-1544
Sarah Ali BL-1455
Yusra Rasool BL-1440

2.  It is a branch of law which determines the circumstances in which a promise shall be
legally binding on the person making it.
 In law of contracts, parties themselves make their own rules as to what shall or shall
not bind them.
 Law of contract does not lay down a number of rights and which the law will protect or
enforce.
 It consists of a number of limiting principles, subject to which the parties may create
rights and duties for themselves which the law will uphold.
 The object and function of the law of contract is to see that the expectations created
by promises of the parties are fulfilled and obligations prescribed by the agreement of
the parties are enforced.

3.  OFFER is a statement by one party of a willingness go enter into a contract on stated
terms, provided that these terms are, in turn, accepted by the party or parties to whom the
offer is addressed. It may be made orally, in writing or by the conduct.
 FATEH MUHAMMAD AGHA VS CITY DISTRICT GOVERNMENT, KARACHI
 INVITATION TO OFFER is simply an expression of willingness to enter into negotiation
which, it is hoped will lead to the conclusion of a contract at a later date.
 Offer and invitation to offer are two different things.
 For example, A person advertises goods for sale in a newspaper, or announces that they
will be sold by tender or auction; a shopkeeper displays goods in a shop window in a
certain price.
 In all these cases it may be asked whether the statement or act made is an offer capable
of acceptance or merely an invitation to make offers and do business; one that
contemplates that further negotiations will take place. A statement of this nature, if it is not
intended to be binding, is known as an Invitation to offer.

4.  A statement of fact made merely to supply information cannot be treated as an offer,
and accepted, so as to create a valid contract. ( Harvey v Facey)
 A telegraphed to B ‘Will you sell us Bumper Hall Pen? Telegraph lowest cash price,
answer paid’. B replied by telegram, ‘Lowest price for Bumper Hall pen £900.’ A
telegraphed, We agree to buy Bumper Hall Pen for £900 asked by you’. Bumper Hall
Pen was a plot of land, and A claimed that this exchange of telegraph constituted a
valid offer and acceptance.
 It should be noted that the first telegraph of A asked two questions, (1) as to the
willingness of B to sell, and (2) as to the lowest price; and that the word telegraph was
addressed to the second question only. This doesnt create the contract, B in stating
the lowest price for the property was not making an offer but supplying the
information.

5.  Advertisement in newspapers, catalogues or price lists are not offers.
 The display is merely an invitation to treat.
 It is for the customer to offer to buy the goods and the shopkeeper may choose either
to accept or to refuse the offer.
 Otherwise The advertiser would be obliged to sell to every person who accepted such
offer even where supplies had run out.
 S.M. SALEEM VS PROVINCE OF SINDH

6.  An announcement inviting tenders is not normally an offer; unless accompanied by
words indicating that the highest or lowest tender will be accepted, it is mere attempt
to ascertain whether an acceptable offer can be obtained.
 A tender is an invitation to bid for a project or accept a formal offer such as a takeover
bid.
 The offer is made by the person who submits the tender, and acceptance is made
when the person inviting the tenders accepts one of them.
 Exceptionally court may hold it an offer for example:
 Referential bidding: A referential bid is a bid or tender for the purchase or supply of
goods or services whose value is stated by reference to the bids or tenders received
from competitors (if any), e.g. One offer 1M other 1lac in access of other bidder.
 .

7.  The general rule is that an auctioneer, by inviting bids to be made, makes an invitation
to offer.
 The offer is made by the auctioneer and not the owner of the goods, so that there is
no concluded contract of sale with the owner of the goods.
 SECRETARY, GOVERNMENT OF THE PUNJAB, HOUSING AND PHYSICAL
PLANNING DEPARTMENT, LAHORE VS MUHAMMAD TOHEED,
 Where the goods are put up for sale by auction upon an advertised condition that the
sale shall be without reserve the auctioneer thereby indicates to prospective byus that
the bid of the highest bona fide bidder will be accepted, amd that the goods willnot at
any stage be withdrawn.An auctioneer who withdraw the goods is said to be liable for
breach of contract with such a bidder.