Business law

1. ETHIRAJ COLLEGE FOR WOMEN
(Autonomous)
Chennai – 600 008
By
Mrs. S. Pravina
Assistant Professor
Department of Bank Management

2.  An offer is the starting point in the making of
an agreement. An offer is also called
“Proposal”.
 According to Sec 2(a) of the Indian Contract
Act, 1872, “A person is said to have made the
proposal when he signifies to another his
willingness to do or to abstain from doing
anything with a view to obtaining the assent
of that offer to such act or abstinence”.

3.  Eg: A says to B, will you purchase my car for
Rs.50,000?, A, in this case, is making an offer
to B as he signifies to B his willingness to sell
his car to B for Rs.50,000 with a view to
obtaining B’s assent to purchase the car.
 The person making the offer is known as the
offeror, proposer or promisor and the person
to whom it is made is called the offeree or
proposee.

4.  It must be made by one person to another
person. In other words, there can be no
proposal by a person to himself.
 Eg: X says to Y that he wants to sell his car to
himself for Rs.1 lakh. There is no proposal
because there can be no proposal by a
person to himself.
 It must be an expression of readiness or
willingness to do (i.e Positive act) or to
abstain from doing something (i.e Negative
act).

5.  Eg: X offers to sell his car to y for Rs.1 lakh.
It’s a positive act on the part of X.
 Eg: X offers not to file a suit against y if y
pays x the outstanding amount of
Rs.1,00,000. it is negative act on the part of
X.
 It must be made with a view to obtain the
consent of that other person to proposed act
or abstinence.
 Eg:

7.  Express offer
 Implied offer

8.  Specific
 general

9.  legal relationship.
 Terms of offer must be definite,unambiguous
and certain and not loose and vague.
 declaration of intention
 Different from an invitation to offer.
 Communication
 Communication of special terms or standard
form contracts

10.  Express offer
 Implied offer
 Specific offer
 General offer
 Cross offer
 Counter – offer
 Standing offer

12.  Acceptance must be absolute and unqualified
 Manner in which acceptance is to be given
 Acceptance must be given according to the
prescribed mode
 Acceptance must be given within the time
specified in the offer
 Acceptance must be given only by the person
to whom the offer is made or by an
authorized person and that too officially
 Acceptance must be conveyed only to the
offerer or a person authorised by him.

13.  Under the normal circumstances, acceptance
cannot be implied from the silence of the
offeree or his failure to reply
 An acceptance based on the presumption of
an offer is not valid
 Acceptance must be given before the offer
lapses or is withdrawn

14.  By revocation
 By lapse of time
 By death or Insanity of the offeror or offeree
 By failure to accept condition precedent
 By counter offer
 By not accepting in the prescribed mode or
usual mode
 By rejection of offer by offer
 By subsequent illegality or destruction of
subject matter of the offer