This document discusses the legal concepts of offer and acceptance in contract formation. It defines key terms like offer, proposal, promisor, offeree, and acceptance. It explains that a contract is formed when there is an offer and acceptance. The acceptance must be absolute and unconditional. It outlines rules for a valid acceptance, including that it must be communicated to the offeror in the usual manner or a reasonable manner. It also discusses conditional offers and printed standard form contracts.
An offer is made when one party indicates a willingness to be bound if the other party accepts. An offer is different from an invitation to treat, which merely invites further negotiations. Displays of goods and advertisements are usually invitations to treat rather than offers, allowing either party to back out. However, an advertisement can be an offer if the wording and context show a clear intent to be bound if accepted. An offer can generally be withdrawn at any time before acceptance.
This document provides an introduction to the law of contract. It defines a contract as a legally binding agreement that can be enforced in courts. Contracts are classified as contracts by deed, which are formal legal documents, or simple contracts, which can be written, oral, or implied. Contracts are also classified as bilateral, involving promises exchanged between two parties, or unilateral, involving one promise in exchange for an act. The essential elements of a valid contract are agreement between the parties, consideration, intention to create legal relations, required form, capacity to contract, consent, and legality of purpose. Contracts can be void, voidable, or unenforceable depending on defects that impact validity or enforceability.
This document discusses key concepts relating to contracts for the sale of goods under Indian law. It begins by providing background on the Sale of Goods Act and then defines a contract of sale. The main elements of a contract of sale are that it involves the transfer of ownership of goods from a seller to a buyer in exchange for a price. The document goes on to distinguish between a sale, where ownership transfers immediately, and an agreement to sell, where transfer occurs later. It also discusses documents related to the sale of goods and implied conditions and warranties in contracts.
Terms can be implied in a contract in three ways: by custom or trade usage, by law, or by courts.
For a term to be implied by custom or trade usage, it must be reasonable, certain, and notorious within the relevant industry. The custom cannot contradict the express terms of the contract. Terms may also be implied by law through common law precedents or statutes that apply to certain types of contracts.
Courts use the business efficacy and officious bystander tests to determine if a term should be implied. Under business efficacy, a term will be implied if it is necessary to make the transaction effective. The officious bystander test considers whether the term is so obvious that both parties would
The document summarizes the key topics covered in the Sales of Goods Act of 1930 in India. It discusses the formation of sales contracts and essential elements. It covers the differences between a sale and agreement to sell. The document also describes the classification of goods, conditions and warranties implied in contracts, as well as exceptions to the rule of caveat emptor. Finally, it discusses the rights of unpaid sellers and rules regarding auction sales.
This document discusses the legal principles of offer and acceptance in contract law. It defines an offer as a proposal made with the intention of obtaining consent. The key points covered are:
1) An offer must be definite, unambiguous, and communicated to the offeree. It cannot be vague or a mere invitation.
2) For a valid acceptance, the acceptance must be absolute and unconditional, conforming to all terms of the offer. A conditional or qualified acceptance is considered a counter-offer.
3) The acceptance must be communicated to the offeror in a reasonable manner, such as in writing or orally, for a contract to be formed. Silence does not imply acceptance.
1. The document discusses the concepts of offer and acceptance in contract law.
2. It provides definitions and examples of express and implied offers, as well as general and specific offers.
3. The key requirements for a valid acceptance are discussed, including that it must be absolute, communicated to the offeror, and according to the prescribed mode. Silence generally does not imply acceptance.
An offer is made when one party indicates a willingness to be bound if the other party accepts. An offer is different from an invitation to treat, which merely invites further negotiations. Displays of goods and advertisements are usually invitations to treat rather than offers, allowing either party to back out. However, an advertisement can be an offer if the wording and context show a clear intent to be bound if accepted. An offer can generally be withdrawn at any time before acceptance.
This document provides an introduction to the law of contract. It defines a contract as a legally binding agreement that can be enforced in courts. Contracts are classified as contracts by deed, which are formal legal documents, or simple contracts, which can be written, oral, or implied. Contracts are also classified as bilateral, involving promises exchanged between two parties, or unilateral, involving one promise in exchange for an act. The essential elements of a valid contract are agreement between the parties, consideration, intention to create legal relations, required form, capacity to contract, consent, and legality of purpose. Contracts can be void, voidable, or unenforceable depending on defects that impact validity or enforceability.
This document discusses key concepts relating to contracts for the sale of goods under Indian law. It begins by providing background on the Sale of Goods Act and then defines a contract of sale. The main elements of a contract of sale are that it involves the transfer of ownership of goods from a seller to a buyer in exchange for a price. The document goes on to distinguish between a sale, where ownership transfers immediately, and an agreement to sell, where transfer occurs later. It also discusses documents related to the sale of goods and implied conditions and warranties in contracts.
Terms can be implied in a contract in three ways: by custom or trade usage, by law, or by courts.
For a term to be implied by custom or trade usage, it must be reasonable, certain, and notorious within the relevant industry. The custom cannot contradict the express terms of the contract. Terms may also be implied by law through common law precedents or statutes that apply to certain types of contracts.
Courts use the business efficacy and officious bystander tests to determine if a term should be implied. Under business efficacy, a term will be implied if it is necessary to make the transaction effective. The officious bystander test considers whether the term is so obvious that both parties would
The document summarizes the key topics covered in the Sales of Goods Act of 1930 in India. It discusses the formation of sales contracts and essential elements. It covers the differences between a sale and agreement to sell. The document also describes the classification of goods, conditions and warranties implied in contracts, as well as exceptions to the rule of caveat emptor. Finally, it discusses the rights of unpaid sellers and rules regarding auction sales.
This document discusses the legal principles of offer and acceptance in contract law. It defines an offer as a proposal made with the intention of obtaining consent. The key points covered are:
1) An offer must be definite, unambiguous, and communicated to the offeree. It cannot be vague or a mere invitation.
2) For a valid acceptance, the acceptance must be absolute and unconditional, conforming to all terms of the offer. A conditional or qualified acceptance is considered a counter-offer.
3) The acceptance must be communicated to the offeror in a reasonable manner, such as in writing or orally, for a contract to be formed. Silence does not imply acceptance.
1. The document discusses the concepts of offer and acceptance in contract law.
2. It provides definitions and examples of express and implied offers, as well as general and specific offers.
3. The key requirements for a valid acceptance are discussed, including that it must be absolute, communicated to the offeror, and according to the prescribed mode. Silence generally does not imply acceptance.
Rose & Frank Co v JR Crompton & Bros Ltd - The parties signed an agreement stating it was not a legal contract but a "gentlemen's agreement". When one party refused orders, the other sued but lost because there was no legally enforceable contract.
Foakes v Beer - A debtor agreed to pay off a debt in installments but the creditor could not sue to recover interest because allowing payment over time provided no new consideration for giving up the interest.
Hyde v Wrench - When one party offered to sell land for a price and the other counter-offered a lower price, the second response acted as a rejection and counter-offer rather than an acceptance, so no contract was
The document discusses offer and acceptance in contract law. It provides definitions for key terms like offeror and offeree. It examines landmark cases that established important principles. Carlill v Carbolic Smoke Ball Co established that advertisements can constitute offers capable of acceptance. Bowerman v ABTA established that notices displayed by travel agents constituted offers. The document also discusses what does and does not constitute an offer, like negotiations being invitations to treat, and how long an offer remains open.
The document provides an overview of the analytical framework of contract law. It discusses the key elements in the formation of contracts, including offers, acceptance, consideration, and intention to create legal relations. It also covers the requirements of certainty, completeness, and form in contracts. The document is divided into five parts that will examine how contracts are formed, the content of contracts, who can enforce contracts, how contracts can be destroyed, and how contracts come to an end or are discharged.
This document provides an overview of key concepts relating to contracts for the sale of goods under Indian law. It begins with an introduction to the Sale of Goods Act of 1930 and then covers general principles such as the definition of a contract of sale and the distinction between a sale and agreement to sell. It also discusses essential elements, types of goods, transfer of ownership, and risks related to perishing or damaged goods. The document then addresses concepts like price, rights of unpaid sellers, conditions and warranties, and concludes with a section on auction sales.
This document provides an introduction and definitions related to contract law in India. It discusses that a contract requires an agreement between two or more parties that intends to create legal obligations. The key elements for a valid contract are agreement, lawful consideration, lawful object, intention to create legal relations, free consent, and competency of parties. There must also be certainty of meaning and possibility of performance. Contracts can be express, implied, quasi-contracts, void, voidable, illegal or unenforceable depending on whether they satisfy these validity requirements.
1) The document discusses the legal concepts of offer and acceptance and bailment. It provides definitions and rules for key terms like offer, acceptance, invitation to offer, bailment, duties of a bailee, types of bailment.
2) Several case studies and problems are presented and solved to demonstrate applications of the concepts. For example, one problem examines whether a display of goods with prices is an offer or invitation to offer.
3) The conclusion states that knowledge of offer/acceptance and bailment will help address legal issues that may come up in business. The report aims to equip readers with understanding of these areas of law.
This document summarizes the key concepts and principles related to constructive trusts under Malaysian law. It discusses the different types of constructive trusts, the differences between constructive trustees and ordinary trustees, and important cases that have helped shape the law on constructive trusts. The summary provides the essential information in 3 sentences:
Constructive trusts are implied trusts that equity recognizes to prevent unfairness, where a person obtains property through wrongful means or in circumstances that would make it unjust for them to keep the property. The document outlines the different situations that can give rise to a constructive trust, such as fraud, breach of fiduciary duty, and acquisition of property through killing. It also discusses the flexible "new model" of constructive trust introduced by Lord
The document discusses various concepts related to performance of contracts under Indian contract law, including:
1) An offer of performance by the promisor allows them to avoid being responsible for non-performance and does not cause them to lose their rights under the contract.
2) For a tender of performance to be valid, it must be unconditional, for the full amount, made by someone willing and able to perform, at the proper time and place and to the proper person.
3) Contracts can generally be performed by the promisor, their agent, legal representatives, or a third party accepted by the promisee. Reciprocal promises and issues regarding time and place of performance are also addressed.
The document defines key concepts in contract law such as void, voidable, unenforceable, illegal contracts. It distinguishes between void and voidable contracts, noting that void contracts cannot be enforced from the beginning while voidable contracts can be enforced or avoided by the aggrieved party. The document also discusses different types of contracts such as express vs implied, executed vs executory, unilateral vs bilateral, and formal vs simple contracts.
MALAYSIAN LEGAL SYSTEM Sources of law english law part 2 s5 claxareejx
The document discusses the application of English commercial law in Malaysia under Section 5 of the Civil Law Act 1956. It provides:
1) Section 5 allows for the reception of English commercial law in Malaysia, with the cut-off date depending on the state - either the date of enactment for some states or continuous reception for others.
2) The term "mercantile law generally" has been broadly interpreted by courts to include any English law connected to commercial transactions.
3) However, Section 5 does not allow for the reception of English land law in Malaysia.
A legal contract requires several key elements to be valid and enforceable:
(1) An offer must be made that is clear, definite, and communicates the intent to be legally bound.
(2) The offer must be accepted in an unqualified manner that matches the terms of the offer.
(3) Consideration, meaning both parties receive something of value in exchange, is required unless the contract is made under seal.
(4) Both parties must intend to create legal relations that are binding upon them. For commercial contracts this is presumed, but social agreements between individuals generally do not intend to be legally binding.
(5) The terms of the contract must be reasonably certain so the obligations of both
Contract means Conditional Contract. When imposed and condition is fulfilled, the Contingent Contract becomes valid and then parties have to perform their obligations.
This document summarizes key aspects of the Sale of Goods Act 1957 regarding contracts of sale, goods, formation of contracts, terms of contracts, transfer of title, and remedies for sellers and buyers. Specifically, it discusses implied terms for time of delivery, title, quiet possession, correspondence to description, fitness for purpose, and merchantable quality. It also outlines rights and remedies such as liens, stoppage in transit, resale, damages, and specific performance.
The document provides an overview of key concepts in Indian contract law under the Indian Contract Act of 1872. It defines a contract as an agreement that is legally enforceable. It outlines the essential elements for a valid contract such as offer, acceptance, consideration, capacity of parties, lawful object and intention to create a legal relationship. It also discusses classification of contracts based on validity, nature and execution. Key terms like offer, acceptance, consideration and their essentials are defined. Exceptions to the general rule of consideration and the concept of a stranger to contract are also summarized.
1. The document discusses the key elements and principles of partnership law in Malaysia.
2. It outlines the definition of a partnership, elements required to form one, types of partners, and rules for determining if a partnership exists.
3. Key points covered include how sharing profits or assets alone does not create a partnership, the need for agreement and intention to carry on business together, and exceptions where receipt of profits does not make one a partner.
4. The summary also discusses an agent's authority to bind the partnership in dealings with outsiders, and cases that further explain partnership principles.
This document is the Sale of Goods Act 1957 of Malaysia. It governs the sale of goods in Malaysia and addresses topics such as:
- Formation of sales contracts and requirements for a valid contract.
- Transfer of property between buyer and seller.
- Rights and obligations of buyers and sellers during contract performance.
- Remedies for breach of contract by either party.
The Act aims to regulate sales transactions and clarify legal issues that may arise, with the overall goal of facilitating commerce through a standardized framework for sales of movable property in Malaysia.
The document summarizes key aspects of contract law under the Indian Contract Act of 1872. It defines a contract as an agreement that is enforceable by law. For an agreement to be valid and enforceable, it must satisfy several requirements - there must be an offer and acceptance, both parties must intend legal obligations, there must be consideration, lawful object, certainty of meaning, and possibility of performance. Certain types of agreements can be void, voidable, or illegal. Damages for breach of contract are also discussed.
This document provides an extension of authority for a real estate agent to sell a property within a certain number of days. It outlines key details about the property such as location, lot area, improvements, and price. It specifies the terms of payment and expenses to be covered by the seller and buyer. The broker's commission is set at 5% of the agreed upon price. If the agent is successful in offering the property, they will receive 50% of the net commission received by the listing agent. All transactions regarding any potential buyer must be done with transparency and include both the listing agent and agent.
Rose & Frank Co v JR Crompton & Bros Ltd - The parties signed an agreement stating it was not a legal contract but a "gentlemen's agreement". When one party refused orders, the other sued but lost because there was no legally enforceable contract.
Foakes v Beer - A debtor agreed to pay off a debt in installments but the creditor could not sue to recover interest because allowing payment over time provided no new consideration for giving up the interest.
Hyde v Wrench - When one party offered to sell land for a price and the other counter-offered a lower price, the second response acted as a rejection and counter-offer rather than an acceptance, so no contract was
The document discusses offer and acceptance in contract law. It provides definitions for key terms like offeror and offeree. It examines landmark cases that established important principles. Carlill v Carbolic Smoke Ball Co established that advertisements can constitute offers capable of acceptance. Bowerman v ABTA established that notices displayed by travel agents constituted offers. The document also discusses what does and does not constitute an offer, like negotiations being invitations to treat, and how long an offer remains open.
The document provides an overview of the analytical framework of contract law. It discusses the key elements in the formation of contracts, including offers, acceptance, consideration, and intention to create legal relations. It also covers the requirements of certainty, completeness, and form in contracts. The document is divided into five parts that will examine how contracts are formed, the content of contracts, who can enforce contracts, how contracts can be destroyed, and how contracts come to an end or are discharged.
This document provides an overview of key concepts relating to contracts for the sale of goods under Indian law. It begins with an introduction to the Sale of Goods Act of 1930 and then covers general principles such as the definition of a contract of sale and the distinction between a sale and agreement to sell. It also discusses essential elements, types of goods, transfer of ownership, and risks related to perishing or damaged goods. The document then addresses concepts like price, rights of unpaid sellers, conditions and warranties, and concludes with a section on auction sales.
This document provides an introduction and definitions related to contract law in India. It discusses that a contract requires an agreement between two or more parties that intends to create legal obligations. The key elements for a valid contract are agreement, lawful consideration, lawful object, intention to create legal relations, free consent, and competency of parties. There must also be certainty of meaning and possibility of performance. Contracts can be express, implied, quasi-contracts, void, voidable, illegal or unenforceable depending on whether they satisfy these validity requirements.
1) The document discusses the legal concepts of offer and acceptance and bailment. It provides definitions and rules for key terms like offer, acceptance, invitation to offer, bailment, duties of a bailee, types of bailment.
2) Several case studies and problems are presented and solved to demonstrate applications of the concepts. For example, one problem examines whether a display of goods with prices is an offer or invitation to offer.
3) The conclusion states that knowledge of offer/acceptance and bailment will help address legal issues that may come up in business. The report aims to equip readers with understanding of these areas of law.
This document summarizes the key concepts and principles related to constructive trusts under Malaysian law. It discusses the different types of constructive trusts, the differences between constructive trustees and ordinary trustees, and important cases that have helped shape the law on constructive trusts. The summary provides the essential information in 3 sentences:
Constructive trusts are implied trusts that equity recognizes to prevent unfairness, where a person obtains property through wrongful means or in circumstances that would make it unjust for them to keep the property. The document outlines the different situations that can give rise to a constructive trust, such as fraud, breach of fiduciary duty, and acquisition of property through killing. It also discusses the flexible "new model" of constructive trust introduced by Lord
The document discusses various concepts related to performance of contracts under Indian contract law, including:
1) An offer of performance by the promisor allows them to avoid being responsible for non-performance and does not cause them to lose their rights under the contract.
2) For a tender of performance to be valid, it must be unconditional, for the full amount, made by someone willing and able to perform, at the proper time and place and to the proper person.
3) Contracts can generally be performed by the promisor, their agent, legal representatives, or a third party accepted by the promisee. Reciprocal promises and issues regarding time and place of performance are also addressed.
The document defines key concepts in contract law such as void, voidable, unenforceable, illegal contracts. It distinguishes between void and voidable contracts, noting that void contracts cannot be enforced from the beginning while voidable contracts can be enforced or avoided by the aggrieved party. The document also discusses different types of contracts such as express vs implied, executed vs executory, unilateral vs bilateral, and formal vs simple contracts.
MALAYSIAN LEGAL SYSTEM Sources of law english law part 2 s5 claxareejx
The document discusses the application of English commercial law in Malaysia under Section 5 of the Civil Law Act 1956. It provides:
1) Section 5 allows for the reception of English commercial law in Malaysia, with the cut-off date depending on the state - either the date of enactment for some states or continuous reception for others.
2) The term "mercantile law generally" has been broadly interpreted by courts to include any English law connected to commercial transactions.
3) However, Section 5 does not allow for the reception of English land law in Malaysia.
A legal contract requires several key elements to be valid and enforceable:
(1) An offer must be made that is clear, definite, and communicates the intent to be legally bound.
(2) The offer must be accepted in an unqualified manner that matches the terms of the offer.
(3) Consideration, meaning both parties receive something of value in exchange, is required unless the contract is made under seal.
(4) Both parties must intend to create legal relations that are binding upon them. For commercial contracts this is presumed, but social agreements between individuals generally do not intend to be legally binding.
(5) The terms of the contract must be reasonably certain so the obligations of both
Contract means Conditional Contract. When imposed and condition is fulfilled, the Contingent Contract becomes valid and then parties have to perform their obligations.
This document summarizes key aspects of the Sale of Goods Act 1957 regarding contracts of sale, goods, formation of contracts, terms of contracts, transfer of title, and remedies for sellers and buyers. Specifically, it discusses implied terms for time of delivery, title, quiet possession, correspondence to description, fitness for purpose, and merchantable quality. It also outlines rights and remedies such as liens, stoppage in transit, resale, damages, and specific performance.
The document provides an overview of key concepts in Indian contract law under the Indian Contract Act of 1872. It defines a contract as an agreement that is legally enforceable. It outlines the essential elements for a valid contract such as offer, acceptance, consideration, capacity of parties, lawful object and intention to create a legal relationship. It also discusses classification of contracts based on validity, nature and execution. Key terms like offer, acceptance, consideration and their essentials are defined. Exceptions to the general rule of consideration and the concept of a stranger to contract are also summarized.
1. The document discusses the key elements and principles of partnership law in Malaysia.
2. It outlines the definition of a partnership, elements required to form one, types of partners, and rules for determining if a partnership exists.
3. Key points covered include how sharing profits or assets alone does not create a partnership, the need for agreement and intention to carry on business together, and exceptions where receipt of profits does not make one a partner.
4. The summary also discusses an agent's authority to bind the partnership in dealings with outsiders, and cases that further explain partnership principles.
This document is the Sale of Goods Act 1957 of Malaysia. It governs the sale of goods in Malaysia and addresses topics such as:
- Formation of sales contracts and requirements for a valid contract.
- Transfer of property between buyer and seller.
- Rights and obligations of buyers and sellers during contract performance.
- Remedies for breach of contract by either party.
The Act aims to regulate sales transactions and clarify legal issues that may arise, with the overall goal of facilitating commerce through a standardized framework for sales of movable property in Malaysia.
The document summarizes key aspects of contract law under the Indian Contract Act of 1872. It defines a contract as an agreement that is enforceable by law. For an agreement to be valid and enforceable, it must satisfy several requirements - there must be an offer and acceptance, both parties must intend legal obligations, there must be consideration, lawful object, certainty of meaning, and possibility of performance. Certain types of agreements can be void, voidable, or illegal. Damages for breach of contract are also discussed.
This document provides an extension of authority for a real estate agent to sell a property within a certain number of days. It outlines key details about the property such as location, lot area, improvements, and price. It specifies the terms of payment and expenses to be covered by the seller and buyer. The broker's commission is set at 5% of the agreed upon price. If the agent is successful in offering the property, they will receive 50% of the net commission received by the listing agent. All transactions regarding any potential buyer must be done with transparency and include both the listing agent and agent.
In this special series the Russell Shaw Group shares with us their Short Sale Package. This extensive document will give you a great start to building your own package.
The document discusses the legal rules regarding acceptance of an offer to form a contract.
1. Acceptance must be absolute and unqualified, communicated to the offeror, and made within any time limit specified in the offer or within a reasonable time if no limit is specified.
2. Communication of acceptance is complete when put in the course of transmission to the offeror. Silence is not generally considered acceptance unless agreed by the parties or required by custom.
3. A person must have the legal capacity and not be disqualified to enter into a valid contract. Capacity depends on factors like soundness of mind, age of majority, and legal status. Agreements by minors and those of uns
This document discusses bailment and pledge under Indian contract law. It defines bailment as the delivery of goods by one person to another for a specific purpose, with an obligation to return or dispose of the goods as instructed. A bailor delivers goods to a bailee under a bailment contract. There are different types of bailments based on whether the benefit is for the bailor, bailee, or both, and whether remuneration is involved. A bailment differs from a sale in that ownership is not transferred, and from a license in that goods are delivered and the bailee is responsible for their safety. The duties of bailors and bailees are also outlined. A pledge is a type of
The document provides a non-exclusive authority to sell agreement for a property located in a specified location. It gives the agent a set number of days to negotiate the sale of the property at a listed price or terms acceptable to the owner. The owner agrees to pay the agent a specified commission percentage if the property is sold by the agent or to a buyer registered by the agent within a certain time period after the agreement ends. The owner certifies they own the property free of liens or encumbrances besides those noted.
This document provides Manuel Arengo Jr., a licensed real estate broker, with the authority to negotiate the sale of a property belonging to the seller. The key details are:
1) The property is located at No. 375 Acacia St., Cebu City with a lot area of [blank] square meters.
2) Manuel Arengo Jr. is authorized to negotiate the sale of the property for a price of 15 million Philippine pesos.
3) Upon the full payment by the buyer or a down payment if financed by a bank, Manuel Arengo Jr. will receive a 5% commission of the final selling price.
The document discusses the legal concepts of offer and acceptance. It defines an offer as a proposal made by one party to another to enter into a legally binding agreement. For an offer to be valid, it must be definite, unambiguous, and communicated to the offeree. An acceptance is the manifestation of assent by the offeree to the terms of the offer, creating a legally binding promise. For an acceptance to be valid, it must be absolute, within a reasonable time period, and communicated to the offeror. The document outlines the rules and legal requirements regarding offer, acceptance, revocation, and rejection.
The document lists 16 cases relevant to the topic of consideration in contract law. It provides brief summaries of 3 key cases:
1. Currie v Misa - The House of Lords upheld the majority decision that a banker was entitled to payment from a purchaser of bills of exchange, even after the seller firm failed and payment was stopped.
2. Dunlop v Selfridge Ltd - The House of Lords held that a clause requiring payment of £5 per tyre sold below a set price was a genuine pre-estimate of damages and not a penalty, so it was enforceable.
3. Pao On v Lau Yiu Long - The Privy Council ruled that a promise to perform a pre-
This document discusses offer and acceptance in contract law. It defines key terms like offeror, offeree, and defines an offer as an expression of willingness to contract on certain terms with the intention of becoming binding upon acceptance. It notes that for a contract to be valid it requires an offer and acceptance. It outlines the requirements for a valid offer and acceptance to form a binding contract, including things like the offer being communicated, common intention of parties, defined terms, and acceptance being absolute and within a reasonable timeframe. It also discusses how an offer can be terminated by refusal, lapse of time, revocation or the acceptance forming a contract.
This document summarizes the key elements of a contract including offer, acceptance, consideration, intention to create a legal relationship, and capacity. It defines offer and acceptance, outlines the requirements for each to be valid including certainty and communication, and discusses revocation. Examples of different types of offers and acceptances are provided from case law. The elements are essential to forming a legally binding contract.
The document discusses the Indian Contract Act of 1872 and provides definitions and classifications of contracts. It defines a contract as an agreement that is enforceable by law. It outlines the essential elements for a valid contract, including offer, acceptance, lawful consideration and capacity. Contracts are classified based on their formation (express, implied, quasi), performance (executed, executory, partly executed) and enforceability (valid, void, voidable, illegal). Quasi-contracts are also discussed, which create obligations by operation of law rather than agreement. Various types of quasi-contracts are explained through examples.
Consideration is something of value that is exchanged between parties to a contract. It is essential for a valid contract. Consideration can be in the form of an act, abstinence from an act, or a promise. It must be something that moves from the promisee at the desire of the promisor. Consideration does not need to be adequate, but it must be real, lawful, and not something the promisor is already obligated to do. Without consideration, there is no valid contract, though there are some exceptions such as natural love and affection or compensation for voluntary services.
The document provides samples of basic legal forms used in Philippine courts, including captions, acknowledgments, affidavits, and negotiable instruments. It describes the types of courts established after the Judiciary Reorganization Act of 1980 and provides examples of captions for each court. It also provides templates for acknowledgments, jurats, affidavits, verifications, and certifications. Finally, it includes examples of promissory notes and bills of exchange as samples of negotiable instruments.
The document discusses the law of partnership in Pakistan. It defines a partnership as a voluntary association of two or more people who contribute money, property, or skills to carry on a lawful business and share profits and losses. The key characteristics of a partnership include no separate legal entity, agreement between partners, a minimum of two partners, engagement in business, profit sharing, unlimited liability, capital contributions, duties of good faith, management involvement, transferability of interests, and duration. The document also discusses types of partnerships like partnership-at-will and particular partnerships.
How to Make Awesome SlideShares: Tips & TricksSlideShare
Turbocharge your online presence with SlideShare. We provide the best tips and tricks for succeeding on SlideShare. Get ideas for what to upload, tips for designing your deck and more.
SlideShare is a global platform for sharing presentations, infographics, videos and documents. It has over 18 million pieces of professional content uploaded by experts like Eric Schmidt and Guy Kawasaki. The document provides tips for setting up an account on SlideShare, uploading content, optimizing it for searchability, and sharing it on social media to build an audience and reputation as a subject matter expert.
Lecture 3 Business law & Legal Issues in Tourism - Copy.pptxmahmudunderdog
1. An offer and acceptance are required to form a contract. An offer involves making a proposal to another party (the offeree). When the offeree signifies their assent to the proposal, it becomes an acceptance and a promise.
2. For a valid offer, the terms must be clear and definite, it must be communicated to the offeree, and it can be revoked any time before acceptance but not afterwards. An acceptance must be absolute and unconditional for a contract to be formed.
3. An offer lapses when revoked, the time period expires, or a condition precedent is not met. An acceptance can only be revoked before the acceptance reaches the offeror's knowledge.
This document summarizes key aspects of contract law under the Indian Contract Act of 1872. It defines a contract as an agreement that is enforceable by law. For an agreement to be considered a contract, there must be (1) an offer, (2) acceptance of the offer, (3) consideration, (4) capacity of the parties to contract, (5) free consent of the parties, and (6) the agreement must have a lawful object and consideration. An offer can be revoked any time before it is accepted. Once accepted, the agreement becomes a binding contract that is enforceable. The document provides examples to illustrate concepts like offer, acceptance, revocation, and conditions required for a valid contract.
This document provides an overview of contract law, specifically focusing on the essential elements of a binding contract, including offer, acceptance, consideration, and intention to be legally bound. It defines an offer as a clear statement of terms that the offeror is willing to do business under, and discusses types of offers like bilateral and unilateral offers. It also examines what constitutes a valid acceptance, including requirements that it mirrors the offer, is firm, and is communicated to the offeror. The termination of offers through refusal, counteroffers, lapse of time, and revocation is also summarized.
The document summarizes key aspects of contract law under the Indian Contract Act of 1872. It defines a contract as an agreement that is enforceable by law. For an agreement to be considered a contract, there must be (1) an offer, (2) acceptance of the offer, and (3) the intention of the parties to create legal obligations. The document outlines additional requirements for a valid contract including lawful consideration and object, free consent, and that the agreement is not declared void. It also discusses concepts such as revocation of offers, communication of offers, and cross-offers.
This document provides an overview of key concepts from the Contract Act of 1872 in Pakistan. It discusses the applicability and scope of the act, as well as provides definitions for important legal terms related to contracts. These include offer, acceptance, consideration, agreement and the essential elements required for a valid contract. Examples of important court cases are also summarized, such as Carlill v. Carbolic Smoke Ball Co. to illustrate the definition of an offer to the public. The different types of contracts in terms of their form are also briefly mentioned.
The document discusses key concepts related to contracts under Indian law such as offer, acceptance, consideration and essential elements of a valid contract. It provides definitions and examples to explain these concepts. Some key points covered include:
- A contract requires an agreement between competent parties, a lawful consideration and lawful object. Not all agreements amount to contracts.
- An offer is a proposal made with the intention to obtain acceptance from another party. It must be certain and communicated to the offeree. Acceptance must be absolute, unqualified and communicated back to the offeror.
- Consideration involves something in return and is the price for a promise. It must move from the promisee or third party at the desire of
The document discusses the key differences between an offer and an invitation to treat (offer). It provides examples of each and outlines the essential elements of a valid offer, including that it must be clear, definite, communicated to the offeree, and not contain negative conditions or cross offers. The document also examines different types of invitations to treat like advertisements, exhibitions, auctions, and tenders. It analyzes relevant case law that illustrates when advertisements, auctions, tenders, and exhibitions constitute offers versus invitations to treat.
The document discusses the key elements of a valid contract under Indian law. It begins by providing context on the Indian Contract Act of 1872 and the nature of agreements that constitute contracts.
The main points are:
1) A contract under Indian law requires an agreement between two parties based on a valid offer and acceptance, along with an intention to create legal obligations.
2) For a contract to be valid, the agreement must also include lawful consideration, capacity of the parties to contract, genuine consent, a legal purpose, and certainty of terms.
3) Essential elements of a valid contract include offer/proposal, acceptance, lawful consideration, competent parties, genuine consent, and a legal object and consideration.
The document discusses key provisions around the formation of a contract under the Indian Contract Act of 1872. It defines concepts like offer, acceptance, consideration, void agreements, voidable contracts, and illegal agreements.
Some key points covered include: an offer becomes a promise when accepted; consideration is something of value given in exchange for a promise; an agreement is enforceable by law and becomes a contract; void agreements are not enforceable. Essentials for a valid contract are agreement between competent parties, lawful object and consideration, free consent, and intention to create legal obligations.
The document discusses key aspects of contract law under the Indian Contract Act of 1872.
[1] It defines a contract as an "agreement enforceable by law" requiring an agreement between two parties that is enforceable under law. [2] It explains essential elements for a valid contract including free consent, lawful object, lawful consideration. [3] It discusses concepts like offer, acceptance, revocation and intention to create legal obligations in the formation of a valid contract.
The document discusses the key elements of a valid contract - offer and acceptance. It defines an offer as an expression of willingness to do or abstain from an act made with the intention of obtaining the other party's consent. For a valid contract to exist, there must be both an offer and acceptance. The offeror makes the offer while the offeree is the party the offer is made to. Acceptance is the consent given by the offeree to the terms of the offer. Several conditions for a valid offer and acceptance are outlined such as the offer and acceptance needing to be clear, definite, and communicated between the parties.
The document discusses the legal concept of an offer under contract law. It defines an offer and lists its essential elements. It explains that an offer requires two parties - the offeror who makes the offer and the offeree to whom the offer is made. The document outlines different types of offers including express and implied offers, specific and general offers, cross offers, counter offers, and standing offers. It also discusses rules regarding a valid offer and provides examples to illustrate these concepts. The summary provides a high-level overview of the key topics and concepts discussed in the document relating to the formation and types of offers.
The document provides an overview of key concepts in Indian contract law under the Indian Contract Act of 1872. It defines a contract as an agreement that is enforceable by law, requiring an offer, acceptance, and consideration. It discusses types of agreements and contracts as void, voidable, or valid. A valid contract requires offer/acceptance, consensus, lawful purpose/consideration, free consent, and capacity to contract. Remedies for breach include ordinary damages for losses in reasonable contemplation of parties, but not consequential losses unless explicitly contemplated.
Offer(proposal ) contract act short study notessuhail qurban
This document provides study notes on offer and related concepts under contract law for law students. It defines an offer as a proposal made with the intention of obtaining the assent of another party. An offer must be communicated, definite, and capable of creating a legal relationship. The document outlines different types of offers and how an offer can be terminated, such as through revocation, lapse of time, failure to meet conditions, death or insanity of the offeror, counteroffer, rejection, or non-acceptance in the prescribed manner. The study notes include examples to illustrate key points and explain essential elements and types of offers.
This document defines an offer and lists the essential elements of a valid offer according to Indian contract law. It provides 9 types of offers:
1. Express and implied offers - Express offers are directly communicated while implied offers are inferred from conduct or circumstances.
2. Specific and general offers - Specific offers are made to individuals while general offers are made to the public.
3. Cross offers occur when two parties make identical offers unaware of each other.
4. A counter offer rejects the original offer and amounts to a new offer with modified terms.
5. Standing offers remain open for a period of time like tenders. Positive offers are to do something, while negative offers are to not do something
Business law regulates business transactions and activities through various acts like the insurance act, contract act, tax act, and sale of goods act. It relates directly to trade, industry and commerce. For an agreement to be considered a legally enforceable contract, it must meet the requirements of offer, acceptance, consideration, capacity and legality. Key elements of a valid contract include offer and acceptance, consideration, free consent between competent parties, a lawful objective, and certainty.
Business law regulates business transactions and activities through rules like various acts related to trade, industry and commerce. A contract is a legally enforceable agreement that differs from void or voidable agreements which are not enforceable. For an agreement to be considered a contract, it requires elements like offer, acceptance, consideration, capacity and lawful objective.
Similar to 88480973 offer-and-acceptance-2nd-cgapter (20)
1. Book Name: Commercial Law and Industrial Law
Writer: Arun Kumar Sen, Jitendra Kumar Mitra
OFFER AND ACCEPTANCE
DEFINITIONS
formation of Contract
All contracts are made by the process of a lawful, offer by one patty and the lawful. acceptance-
of the offer by the other party. X says to Y, "Will you buy my house for Rs 50,000 ?"This is an
offer. If Y says, "Yes", the offer is accepted and a contract is formed.
Proposal
An "offer" involves the making of a "proposal" The term proposal is defined in the Contract Act
as follows :
"When one person signifies to another his willingness to do 'or to abstain from doing anything,
with a view to obtaining the assent of that other to such act or abstinence, he is said to make a
proposal" -Sec. 2(a).
offer
A proposal is also called an offer. The promisor or the person making the offer is called the
offeror. The person to whom the offer is made is called the offeree.
Promise and Acceptance
"When, the person to whom the proposal is made signifies his assent thereto, the proposal is said
to be accepted. A proposal when accepted becomes a promise."-Sec, 2(b),
"The person making the proposal is called the `promisor' and the person accepting the proposal is
called the `promisee'.” -Sec. 2(c).
Examples of offer and acceptance :
(i) Specific Offer : X offers to sell his motor car to y at the price of Rs. 5000. This is a proposal.
X is the promisor or the offeror. Y is the offeree. If Y agrees to buy the car at the price stated ; Y
becomes the promisee or the acceptor. There is a contract.
2. (ii) Specific Offer : p puts up a notice offering to pay a reward of Rs. S to any student who finds
out and returns a book lost in the college. Q a student, reads the notice and then finds and brings
the book to P. P's notice is an offer and Q is the acceptor. There is a contract.
(iii) general Offer : A transport company runs tramway cars along the streets. This is an offer by
the company to carrypassengers at the scheduled fares. The offer is accepted when a passenger gets
up on a tram with the intention of becoming a passenger.
EFFECT OF OFFER AND ACCEPTANCE
Offer alone and acceptance alone are "inactive", "inert" or "powerless":
When separate they cannot lead to the formation of a contract.
But an offer together with acceptance leads to a contract which is enforceable by the
Court, provided the other'essential elements of contract exist.
The formation of a “contract can be illustrated by the famous `gunpowder and lighted
match' simile of Anson. The materials in a gunpowder (like sulphur, iron fillings, etc.) by
themselves are not enough to cause an explosion. But when a lighted match is applied to
the inflammable mixture, an explosion occurs.
Similarly, offer and acceptance together can explode leading to the formation of a valid
contract.
But if there is any disqualification on the part of either offer or acceptance, no contract
will be formed just as if a gunpowder lacks sulphur or a lighted match is damp no
explosion will occur.
The idea being clear, we can recall the original saying. "Acceptance is to offerwhat a
lighted matchis to a train of gunpowder. It produces somethingwhich cannot be recalled or
undone. But the powder mayhavelain till it hasbecome dampor the man wholaid the train
may remove it before the matchis applied.So an offer may lapse for want of acceptance or be
revoked before acceptance.Acceptance converts the offer into a promiseand thenit is toolate
to remove it" (Anson)
OFFER
rules regarding offer
The Contract Act contains various rules regarding offer or proposal. They can be summed up as
follows :
1. An offer may be express or may be implied from the ' circumstances :
An offer may be made in two ways :
I. by words, spoken or written and
II. by conduct.
3. When an-offer is made by stating so in words or in writing, it is called an Express offer.
When an offer is implied from the conduct of a person, it is. called an Implied offer.
Examples (i) and (it) in the last page, are cases of express offer. Example -(ii) is a case of
an implied offer.
"In so far .as the proposal or acceptance of any promise is . made in words, the promise is said
to be express. In so far as such proposal or acceptance is made otherwise than in words, the
promise is said to be implied"-Sec. 9.
2. An offer may be made to a definite person ;
to some definite class of persons ; or to the world at large :( An offer made to a definite
person or a definite class of person is called a Specific offer. A
n offer sent to all persons (or the world at large) is called a General offer.)Example (i) is an
offer to a definite person; example (ii) is an offer' to a definite class of persons; and example
(iii) is an offer to the world at large. (See pp. 17-18)
3.legal relationship is required :
The offer must be one which -is capable of creating a legal relationship.
A social party or an invitation to play cards is not a legal relationship. Therefore, an offer
to such an affair does not lead to a binding contract. (See chapter 3, Part I, p. 33)
The terms of the offer must be certain, definite, unambiguous and not vague : X says to
Y, "I will give some money if you marry Z ". This is not an offer which can be accepted
because the amount of money to be paid is not certain.
A mere statement of intention is not an offer :
A distinction is usually made, between an "offer" and "a statement of intention".
Price-lists and catalogues, and enquiries for customers are merely statements of intention.
They are not regarded as offers but as invitation to others to made offers.
An advertisement in a newspaper or elsewhere may be so worded that it amounts to an
offer. But ordinarily and advertisement is considered to be an invitation to make offers.
Similarly, in an auction sale, articles are displayed with an intention that the bidders present
may bid for them i.e. may make an offer.
Thus in an auction sale a bid is an otter while the fall of the hammer signifies the acceptance
of the auctioner. (Payre v. Cave)
examples :
(i) intention to sell:
A lable on an article in a shopkeepers showcase stating `price Rs. S' is considered to be the expression
of an intention to sell the article at Rs.5 . If is not an offer to the .world at large which canbe
accepted byanybody. The intending purchaser who wishes to buy the article is the proposer. The
4. shopkeeper may or may not accept the proposal. The same rule applies to pricelist and catalogues.
Fisher v. Bell.
(ii)Quotation of prices :
A quotation of prices is not an offer, but an invitation for offers. Mylappa Chettiar v. Aga Mirza
Mohamed Shirazee.This is true of many common forms of advertisement.
(iii) Advertisements :
A newspaper advertisement inviting applications ~ for a 'job or inviting tenders for some work is
not an offer. It is only an invitation to make offers. The applicants who reply to the
advertisement are the proposers or offerors. The advertiser is free to accept any one of. the
applications.
(iv) Catalogue :
A banker's catalogue of charges is not an offer. Bank of Travancorr v. Dhirt Ram
(v) Time-table :
A railway time-table is not an offer. Therefore if a train does not work according to the table, the
ticket-holder cannot file a' case for breach of contract.
(vi) Question and Reply :
H telegraphed to F asking the tatter to inform him whether he would sell Bumper Hall Pen and if
so at what price. F informed H that the lowest price was £900 but did not* say that he was
willing to sell at that price. H telegraphed. that he would bay at that price. F gave no reply to the
telegram. Held, there was no contract because neither the question of H nor the reply of F
constituted an offer. Harvey v. Facey
(vii) Auction :
When particular goods are advertised for sale by auction the auctioneer does not contract any one
who attends the sale intending to purchase those goods that they shall be actually put up for sale.
Harris v. Nickerson.
6. offer must be communicated to the offeree :
A person cannot accept an offer unless he knows of the existence of the offer.
P offers a reward to anyone who returns his lost dog. Q finding the dog brings it to P
without having heard of the offer. Held, he was not entitled to the reward. Fitch v.
Snedaker In this case it was argued that a man cannot accept an offer without intending to
do so, and he cannot intend to accept an offer of which he was ignorant.
5. In Lalman v. Gauri Dutt. G sent his servant in search of his missing nephew.
Subsequently G announced a reward for information concerning the boy. L brought back
the missing boy, without having known of the reward. Held, there was no contract
between L and G and the reward cannot be claimed.
7. an offer may be conditional :
An offer may be made subject to conditions. In such cases, the conditions must be clearly
communicated to the offeree.
If a person accepts an offer without knowledge of the conditions, the offeror cannot claim
fulfillment of the conditions. But if the conditions arc clearly written or expressed and
should have been known to the offeree, he cannot plead ignorance of the conditions.
Example :
(i) Strict enforcement :
X agreed to buy goods from Y and signed an order form given by Y containing a number of
clauses in small print, without .reading them. Held, clauses were binding on X. L Estrange v.
graucob Ltd
(ii) strict enforcement :
T, who could not read, took an excursion ticket on the railway. On the front of the ticket was
printed "for conditions see back". One of the conditions was that the railway company would not
be liable for personal injuries to passengers. T was injured by a railway accident. Held, T was
bound by the conditions and could not recover any damages. Thomson v. L. M. & S Rly
(iii) No reasonable notice :
R booked her passage on a ship and received a ticket ‘folded in such a way that no writing was
visible. On the ticket were printed certain conditions in small type, one of which was that the
shipowner's liability was limited to 100. R knew that there was printing on the ticket but did not
know that the printing related to conditions of the contract. Held, R was not bound by the
conditions as she did not know of their existence, and having regard to the smallness of the type
in which they were printed, the absence of calling of attention to them, the shipowner had not
given reasonable notice of them. Richardson v. Rawntree.
(iv) Against public interest :
M delivered one new sari to a laundry for washing. On the back of the printed receipt it was
stated that the customer would be entitled to recover only 15% of the market-price of the article
in case of loss. The sari was lost owing to the negligence of the laundry. In a suit by :bf it was
held that the term was unreasonable. Such a term would give a premium on dishonesty
and is against the public interest. Lily White v. R Munnuswami.
6. (v) unreasonable :
in a Karnataka case, a laundry would pay only 8% of the price in case of loss. The court held that
the term was unreasonable. M. Siddalingappa v. T. Nataraj
Comments : A contract formed on a conditional offer is valid. The terms of the contract can be
constructed strictly or leniently. Formerly, all contracts were constructed and enforced strictly.
See examples (r) and (ii), above. In recent times, however, the courts have adopted various
protective measures for the aggrieved persons. Conditional offers are invalid under the following
circumstances :
1. Lack of reasonable notice. Example (iii)
2. Unreasonable terms. Example (iv) and (v)
3.breach of fundamental rights.
4.Tortious action by offeror:
8. Printed Contracts :
Printed Contracts (or Standard Forms of Contracts) often' contain a large number of terms
and conditions which exclude liability under the contract.
For examples, the Life Insurance -Corporation of India, the Railway Administration,
Statutory Corporation and big companies issue printed forms of contract.
The individual is bound to sign them whether he likes the terms or not.
Previously, the offerees of such printed forms were helpless against the massive
organisations like those above.
These organisations have availed of the opportunity to exploit the weak individual by
imposing onerous terms upon them. Therefore; nowadays in order to protect the
oppressed individual the courts have evolved various modes of protection.
ACCEPTANCE
Who can accept ?
An offer can be accepted only by the person or persons for whom the offer is intended.
An offer made to a particular person can only be accepted by him because he is the only
person intended to accept.
An offer made to a class of persons can be accepted by any member of that class.
An-offer made to the world at large can be accepted by any person whatsoever.
X sold his business to Y without disclosing the fact to his customers. Z sent an order for goods to
X by name.. Y received it and sent a letter of acceptance. Held, there was no contract between Y
and Z because Z never made any offer to Y. Boulton v. Jones.
7. Rules regarding -acceptance
The acceptance of an offer to, be legally effective must satisfy, the following requirements
1.must be 'an absolute and unqualified acceptance of all the terms of the offer-Sec 7(1).
If there is any variation, even o n an unimportant point, between the terms of the offer and the
terms of the acceptance, there is no contract.
Example
(i) M offered land to N at £280. N replied accepting and enclosing, £80, and promising to pay the
balance by monthly instalments of £50. Held, there was no contract, as there was no unqualified
acceptance. Neale v .merrett.
(ii) P offered to buy O's mare on Q giving a guarantee that the mare was quite in harness. Q
guaranteed that. the mare was "quiet in
double harness ". Held, no acceptance. Jordan v. Norton
2. conditional Acceptance :
In accordance with English law as well as with the terms of the Contract Act, an
acceptance with a variation is no acceptance ; it is simply a counter-proposal. which must
be accepted by the original promisor before a contract is made.
X offered to sell his house for Rs. 12,000. Y said, "accepted f o r Rs. 10,000." This is not
an acceptance but 'a counter offer or counter offer on counter proposal. Kundan Lal v.
Secretary of State ; Hyde v. Wrench.
But an acceptance is not called `conditional' if an immaterial term is added or if there
occurs any misunderstanding between the parties for the interpretation of collateral terms.
3. Contracts subject to condition :
There are cases where an `immediate binding contract is formed although some of the
parties' rights and obligations may be dependent' upon the happening of a particular
event.
For example, the agreement may contain such a term as `subject to the purchaser's
solicitors approving the title." Smith v. Butler-1. (Anson-Law of contract, p. 54)
4. Clarification :
The seeking clarification of offer neither amounts to the acceptance of the offer nor to the
making of a counter offer. Cheshire and Fifoots' Law of Contracts. 9 Edn.p. 34 ; U. P. State
Electricity Board and another v. M/s Goel Electric stores, Chandigarh.
5. the acceptance must be expressedin same usual or reasonable manner :-Sec 7(2).
8. The offeree may express his acceptance by word of mouth, telephone, telegram or by
post. These are the usual methods of communicating acceptance to the offeror.
[Communication.-See p. 26]
An offer may also be accepted by conduct. If the offeree does what the offeror wants him
to do, there is acceptance of . the offer by conduct. Section 8 of the Act states that,
"Performance of the conditions of a proposal or the acceptance of any consideration for
reciprocal promise which may be offered with a proposal, is an acceptance of the
proposal."
Examples :
(i) Oral or by writing. P offers to buy Q's bicycle at Rs. 50. Q may accept this offer by stating so
orally or through telephone or by writing a letter or by sending a telegram to that effect.
(ii) conduct. A company offered £100, to anyone who contracted influenza after using their
smoke ball 3 times daily for 2 weeks. Mrs. Carlill used the smoke ball but nevertheless got
influenza. She claimed the reward. The company objected, that she should have notified them for
her acceptance of the offer. Held, the use of the smoke ball by Mr. Carlill constituted acceptance
of the offer by conduct, and no formal notice of acceptance was necessary. Carlill v. Carbolic
Smoke Ball Company.
(iii) Conduct. A widow invited her niece to stay with her in her residence and promised to settle
on her a particular immovable property. The niece stayed with her in residence till her death.
Held, (by the Privy Council) that the niece was entitled to the property because she had accepted
the aunt's offer by going to her residence and staying with her as desired. V.Rao v. A Rao.
6. Mental acceptance or uncommunicated assent does -not result in a contract :
No contract is formed if the offeree remains silent and does nothing to show that he
has accepted the offer. Acceptance must be communicated to the offeror or shown by
conduct.
Acceptance cannot be implied from silence of the offeree. See example (iii).
Example :
(i) F offered to buy B's horse for f30, saying, "!f 1 hear no more about . him ! shall consider the
horse as mine at £30" B did not reply. Held, there was no contract because there was no
communication of acceptance. Mental acceptance or uncommunicated assent does not result in a
contract. Felt house v. Bindley.
(ii) A person received an offer by letter ; he wrote on the letter "accepted", put the letter in his
drawer and forgot all about it. Held there was no contract because the other party was not
informed. Brogden v. Metropolitan Rly Co.
9. (iii) Insurance proposal; Acceptance is complete only when it is communicated to the offeror.
Silence or receipt and retention of premium cannot be construed as acceptance. Life Insurance
Corporation of India v. Raja vasireddy Komalavalli Kamba and others
7.The mode of acceptance :
Where the promisor prescribes a particular mode of acceptance, the offeree must follow
the _ particular mode of acceptance.
For example, if the offeror says, "acceptance to be sent by telegram", the offeree must
send a telegram.
If the offeree fails to follow the prescribed mode of acceptance, the proposer may, within
a reasonable time after the acceptance is communicated to him, insist that the proposal be
accepted in the prescribed manner and not otherwise.
But if the proposer does not insist upon it, he accepts the acceptance as actually
communicated.-Sec 7(2).
Thus, under the Indian law the proposer has the option of waiving compliance with the
prescribed mode of acceptance.
Example :
X offers to buy a certain quantity of coal from Y at a certain price and asks Y to. send a telegram
if he accepts, Y writes a letter
accepting the offer. X may insist on a telegram from Y ; but if X does not so insist, the
acceptance is good.
8. time of Acceptance :
It the offeror prescribes a time, the acceptance must be done within that time.
If no time is prescribed the acceptance must be done within reasonable time.
What is `reasonable' depends on the facts of the case. See the Case of Ramsgate Victoria
Hotel Co. v. Montefiore
9. when acceptance is complete : Section 4 of the Contract Act lays down that the
communication of an acceptance is
complete,-as against the proposer, when it is put in a course of transmission to hint, 'so as to be
out of the power of the acceptor; and as against the acceptor, when it comes to the knowledge of
the proposer.
Examples :
(i) A proposes, by letter, to bell a house to B at a certain price. The communication of the
proposal is complete': when 8 receives the fetter. '
10. (ii) B accepts A's proposal by a letter sent by post. The communication of the acceptance is
compete-as against A, when the letter is posted, as against B, when the letter is received by A.
10. Before Offer:
Acceptance must be given before the offer.
This is the natural sequence.
There cannot be acceptance before the offer is given from any person. See the case of Lalmnn v.
Gauri Du1t.
11. the acceptance must be made while the offer is in force, i. e. before the offer has been
revoked or the offer has lapsed. How an offer is revoked is described below.
COMMUNICATION OF OFFER AND ACCEPTANCE
Section 3 of the Contract Act states as follows : The communication of proposals, the acceptance
of proposals, and the revocation of proposals and acceptances, respectively, are deemed to be
made by any act or omission of the party proposing, accepting or revoking by which he intends
to communicate such proposal, acceptance or revocation or which has the effect of
communicating it.
How is an Offer to be Communicated?
An offer may be communicated to the offeree or offerees by word of mouth, by writing
or by conduct.
A written offer may be contained in a letter or a telegram. A circular or advertisement or
a notice may be written in such a language that it amounts to an offer.
A tramway car and a bus going along a street and picking up passengers are examples of
offers by conduct.
Section 4 states : "The communication of a proposal is complete when it comes to the
knowledge of the person to whom it is made
How is an acceptance to be Communicated ?
offer and Acceptance by Post
An offer may be made by post.
An offer may also be accepted by post, if there is no other mode of acceptance specially
prescribed by the proposer.
When a proposal is made through the post, the post office is by implication the agent of
the proposer.
Therefore a letter of acceptance duly addressed and posted is sufficient acceptance even
though the letter does not actually reach the proposer. (Notice to an agent is considered to
be notice to the principal).
11. The letter must, however, be correctly addressed.
The letter must be actually posted. It is not enough to iv e it to somebody to post.
Examples :
(i) G applied for shares in a company. A letter of allotment was posted "~ but the letter did not
reach G. Held there was a binding contract and G was a shareholder of the company. Household
Fire Insurance Co: v. Gran1.
(ii) A registered envelope was tendered by the postman to the addressee, who refused to accept
it. It is to be presumed that the addressee has the knowledge of the content thereof.. Har Charn
Singh v. Shiv rani and Others.
Offer and Acceptance through Telephone
Offer and acceptance can be communicated through the telephone.
But there are certain rules regarding oral communication. It has been held that the offer
and acceptance must be audible, heard and understood.
If these conditions are satisfied and the other essential elements of contract exist, the
parties are bound through a telephone conversation The High Court judgment about this
matter is quoted below. `Now, when the parties negotiate a contract orally in the presence
of each other or over telephone and one of them makes an oral offer to the other, it is
plain that an oral acceptance is expected, and the acceptor must ensure that his
acceptance is audible, heard and understood by the of f er. The acceptance in such a case
must be by such words which have the effect of communicating it:' Kanhaiylal v .
Dineshwar Chandra
In an English court it was held that a communication, sent through a telex or a teleprinter
machine in the office, is valid. A contract made by "telex" was no exception to the
general rulethat acceptance is not complete until communicated. Entores Ltd. v. miles Far
Eastern Corporation
Microphone
There was an auction sale of plots of land. The terms, including certain restrictive conditions,
were announced by a microphone. The Supreme Court held, "Microphones have not yet acquired
notoriety as carriers of binding representations. Promises held out over loudspeakers are often
claptraps of politics." Banwari Lal v. Sukhdarshan Dayal.
OPTION
An option is a conditional contract to do something. Suppose that P the owner of a house, agrees
in consideration of Rs. 200, to give Q an option to buy the house within six months at a certain
price. This is a contract binding upon P to allow Q to purchase the house at the agreed price at
any time within six months. A promise to keep an offer open to acceptance for a certain time is
not binding' on the proposer unless there is a consideration separately given for that promise,
as in the example given above.
12. STANDING CONTRACT AND OPEN PROPOSALS
Contracts for the supply of goods over a period of time are some times so worded that the buyer
has an option as regards the quantity to be purchased and the time, of purchase. Such contracts
are called "Standing Contracts" or "Open Proposals".
Examples
P signed a tender addressed to the London County Council, agreeing, on acceptance, to supply.
all the goods specified in the schedule, to the extent ordered. The tender was accepted but the
L. C. C. did not order any goods. Held, the L. C. C. was not bound to order any goods, but if it
did so, P was bound to deliver the goods as and when ordered. Percival Ltd. v. L.C.C.
In such cases as above, a contract comes into existence when a definite quantity is ordered
Bengal coal co. v wadia
REVOCATION
Revocation of an Offer. When does an Offer Lapse?
An offer comes to an end, and is no longer open to acceptance under the following
circumstances.-Sec 6.
1. By notice
If the offeror gives notice of revocation to the other party, i.e., expressly withdraws the
offer, and the offer comes to an end. An offer may be revoked any time before
acceptance. but not afterwards.
Once an offer is accepted there is a binding contract.
The acceptance of an offer becomes binding on the offeror as soon as the acceptance is,
put in course of communication to the offeror so as to be out of the power of the acceptor.
But any time before this happens the offer may be revoked.
A proposal is sent by X to Y and is accepted by Y by letter. The proposal might have
been revoked any time before the letter of acceptance was posted but it cannot be revoked
after the letter is posted.
The notice of revocation does not take effect until it comes within the knowledge of the
offeree.
2. By lapse of time
When the proposer prescribes a time within which the proposal must be accepted, the proposal
lapses as soon as the time expires.
3. After expiry of reasonable time
13. If no time has been prescribed, the proposal lapses after the expiry of a reasonable time. What is
reasonable time will depend on the circumstances of the case.
example :
On 8th June, M offered to take shares in R company. He received a letter of allotment on 23rd
November. M refused to take the shares. Held, M was entitled to refuse as the offer had lapsed
by the delay in acceptance. Ramsgate Victoria Hotel Co. v. Montefiore.
4. By failure of a condition precedent
An offer lapses by the failure of the acceptor to fulfill a condition precedent to acceptance, where
such a condition has been prescribed
Example :
P says to Q. "I will sell my house at Delhi to you for Rs. 50,000 if you are married." The offer
cannot be accepted until and unless Q is married.
5.By death or insanity
An offer lapses by the death or insanity of the proposer, if the fact of his death or insanity comes
to the knowledge of the acceptor before acceptance.
6.Counter Offer
When a counter offer is given, the original offer lapse. See the Case of Hyde v. Wrench
7.By refusal
A proposal once refused is dead and cannot be revived by its subsequent acceptance.
Example :
A offers to sell his farm to B for Rs. 1,000. B replies offering to pay Rs. 950. A refuses.
Subsequently B writes accepting the original offer. There is no contract because the original
offer has lapsed.
Revocation of Acceptance
Section 5 of the Contract Act provides that an acceptance can be revoked any time before the
acceptance comes to the knowledge of the proposer but not afterwards.
Example :
14. P proposes, by a letter sent by post, to sell his house to Q. Q accepts the proposal by a letter sent
by post. Q may revoke his acceptance any time before the letter communicating it reaches P but
not afterwards.
The English law on this point is different. Under English law an acceptance is irrevocable
once it is put in course of communication to the offeror. Thus in the above example Q
could not have revoked the acceptance once he had posted the letter of acceptance.
Communication of Revocation
According to Section 3 of the Act, the revocation of .aproposal or an acceptance is
deemed to be made by any act or omission of the party by which he intends to
communicate such , revocation, or which has the effect of communicating it.
According to Section 4 of the Act, the communication of revocation is complete
as against the person who makes it, when it is put into a . course of transmission to the
person to whom it is made, so as to be out of the power of the person who makes it ; as
against the person to whom it is made; when it comes to his knowledge.
Examples :
(i) P nukes a proposal to Q. Q sends a letter of acceptance. Subsequently Q revokes his
acceptance by telegram. Q's revocation is complete, as against Q when the telegram is
despatched, and as against P when it reaches him.
(ii) A revokes his proposal by telegram. The revocation is complete as against A when the
telegram is despatched. It is complete as against B when B receives it. B revokes his
acceptance by telegram. B's revocation is complete as against B when the telegram is
despatched, and as against A when it reaches him. .
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