This document discusses the legal concepts of offer and acceptance in contract law. It defines an offer as a proposal by one party to enter into a legally binding agreement with another party. An offer must be definite, unambiguous, and capable of being accepted. For a contract to be formed, the offer must be accepted, which is the offeree manifesting a willingness to be bound by the offer's terms. Acceptance must be absolute, communicated to the offeror according to the prescribed mode, and given within a reasonable time period before the offer lapses or is revoked. The document outlines the rules and requirements for valid offers and acceptances in contract formation.

1. OFFER ANDOFFER AND
ACCEPTANCEACCEPTANCE

2. OfferOffer
 An offer is a proposal by one party toAn offer is a proposal by one party to
another to enter into a legally bindinganother to enter into a legally binding
agreement with him.agreement with him.
 Proposal is made when he “signifies toProposal is made when he “signifies to
another his willingness to do or to abstainanother his willingness to do or to abstain
from doing any thing, with a view tofrom doing any thing, with a view to
obtaining the assent of that other to suchobtaining the assent of that other to such
act or abstinence”act or abstinence”

3. TypesTypes
 Express – by words spoken or writtenExpress – by words spoken or written
 Implied – from the conduct of partiesImplied – from the conduct of parties
 Specific – can be accepted only bySpecific – can be accepted only by
person to whom it is madeperson to whom it is made
 General – to the world at largeGeneral – to the world at large
Offeror – person making the offerOfferor – person making the offer
Offeree – To whom offer is madeOfferee – To whom offer is made
Acceptor – when he accepts the offerAcceptor – when he accepts the offer

4. Legal rules as to offerLegal rules as to offer
 Is capable of being accepted andIs capable of being accepted and
giving rise to legal relationshipgiving rise to legal relationship
 Terms of offer must be definite,Terms of offer must be definite,
unambiguous, and certainunambiguous, and certain
 An offer may be distinguished from-An offer may be distinguished from-
(a)(a) Declaration of intention andDeclaration of intention and
announcementannouncement
(b)(b) An invitation to make an offer or to doAn invitation to make an offer or to do
businessbusiness

5.  Offer must be communicatedOffer must be communicated
 Must be made with a view of obtainingMust be made with a view of obtaining
the accentthe accent
 Should not contain a term the non-Should not contain a term the non-
compliance of which may be assumedcompliance of which may be assumed
to amount to acceptanceto amount to acceptance
 A statement of price is not an offerA statement of price is not an offer

6. AcceptanceAcceptance
 Is the act of assenting by the offeree to anIs the act of assenting by the offeree to an
offer. It is the manifestation by the offereeoffer. It is the manifestation by the offeree
of his willingness to be bound by the termsof his willingness to be bound by the terms
of the offer.of the offer.
 May be express or impliedMay be express or implied

7. Legal rules as to acceptanceLegal rules as to acceptance
 Must be absolute and unqualifiedMust be absolute and unqualified
 Communicated to the offerorCommunicated to the offeror
 Must be according to the modeMust be according to the mode
prescribed or usual and reasonableprescribed or usual and reasonable
modemode
 Must be given with in a reasonable timeMust be given with in a reasonable time
 It cannot precede an offerIt cannot precede an offer

8.  Must be given by party or parties to whomMust be given by party or parties to whom
the offer is madethe offer is made
 It must be given before the offer lapses orIt must be given before the offer lapses or
before the offer is withdrawnbefore the offer is withdrawn
 It cannot be implied from silenceIt cannot be implied from silence

9. CommunicationCommunication
 When communication is complete?When communication is complete?
Communication of offer: when it comes toCommunication of offer: when it comes to
the knowledge of the person to whom itthe knowledge of the person to whom it
is made.is made.
Communication of acceptance:Communication of acceptance:
As against the proposer when it is put intoAs against the proposer when it is put into
a course of transmission to him.a course of transmission to him.
As against the acceptor when it comes toAs against the acceptor when it comes to
the knowledge of the proposerthe knowledge of the proposer

10. Communication of revocationCommunication of revocation
 Is complete as against the person whoIs complete as against the person who
makes it - when it is put into a course ofmakes it - when it is put into a course of
transmission to the person to whom it istransmission to the person to whom it is
mademade
 Is complete as against the person toIs complete as against the person to
whom it is made – when it comes to hiswhom it is made – when it comes to his
knowledgeknowledge

11. Time of revocationTime of revocation
Of ProposalOf Proposal
May be revoked at any time before theMay be revoked at any time before the
communication of acceptance iscommunication of acceptance is
complete as against the proposercomplete as against the proposer
Of AcceptanceOf Acceptance
At any time before the communicationAt any time before the communication
of the acceptance is complete asof the acceptance is complete as
against the acceptor.against the acceptor.

12. When does an offer come to anWhen does an offer come to an
end?end?
 RevocationRevocation
 Lapse of timeLapse of time
 Non- fulfilment of a conditionNon- fulfilment of a condition
 By death or insanityBy death or insanity
 If counter-offer is madeIf counter-offer is made
 Not accepted according to prescribedNot accepted according to prescribed
modemode
 If the law is changedIf the law is changed