The document outlines the essential requirements for a valid offer and acceptance in contract law. It discusses how an offer must be definite and intended to create legal relations. It also explains how an offer can lapse or terminate through rejection, revocation, or counteroffer. The document notes acceptance must be absolute and communicated to the offeror according to the prescribed mode and before the offer lapses. It provides details on how communication of offer, acceptance, and revocation are considered complete.

1. Offer & Acceptance
Sec. 3 to 9 of ICA,1872

3. Essential requirements of a valid
offer:
 Offer must be made with a view to obtain
acceptance.
 Offer must be made with the intention to
create legal relations.
 Terms of offer must be definite,unambiguous
& certain or capable of being made
certain.The term of offer must not be
loose,vague or ambiguous.10,11

4.  Offer must be distinguished from:(a) a
mere declaration of intention or (b) an
invitation to offer.12,13
 The offer must be communicated to
offeree.14
 The offer must not contain a term the
non-compliance of which may be
assumed to amount to acceptance.14

5.  A tender is an offer as it is in response
to an invitation to offer. (a)Specific15 or
definite (b)Standing16
 Special terms in offer must be duly
brought to the notice of the offeree at
the time the offer is made.17
 Two identical cross-offers do not make
a contract.18

6. X
Y
X
Y
Cross Offer

7. Termination or Lapse of Offer:
 The offer lapses after stipulated or
reasonable time.19
 An offer lapses by the death or insanity
of the offeror or offeree.
 An offer terminates when rejected by
the offeree.
 An offer terminates when revoked by
the offeror before acceptance.

8.  An offer terminates by not being
accepted in the mode prescribed or if
no mode is prescribed in some usual &
reasonable manner.
 A conditional offer terminates when
conditions is not accepted by the
offeree.20
 It terminates by counter offer by the
offeree.

9. Acceptance
Acceptance how made:
Offeree
Acceptance
Assent to proposal

10. Assent
Expressed Implied
writing Word of mouth
By performance of some
Required act.1
Surrounding circumstances
Or the conduct of the parties.2

11. WHO CAN ACCEPT?

12. Essentials of a valid Acceptance:
 Acceptance must be Absolute &
Unqualified4
 Acceptance must be communicated to
the offeror5( the acceptance of an offer
can not implied from the silence of the
offeree or his failure to answer)6
 Acceptance must be according to the
mode prescribed7

13. Agreement to agree in future.8
 It must be given within the time
specified or within reasonable time
 It must be in response to offer
 It must be made before the offer lapses
 It must be given by the person to whom
the offer is made
Communication of offer & acceptance
Revocation of offer & acceptance

14. Communication Of Offer & Acceptance:
 Sec.4: The comm. Of a proposal is complete when it
comes to the knowledge of the person to whom it is
made. E.g.
 The comm. Of acceptance is complete:
 1. as against the proposer, when it is put into a
course of transmission to him, so as to be out of the
power of the acceptor

15.  2. As against the acceptor, when it comes to
the knowledge of the proposer (ex.)
 The comm. Of a revocation(of an offer or
an acceptance) is complete:
 1.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.

16.  2.as against the person to whom it is
made when it comes to his knowledge.

17. Revocation of Proposal & Acceptance:
 Sec 5 provides that a proposal may be
revoked at any time before the comm. Of its
acceptance is complete as against the
proposer, but not afterwards.
 Also an acceptance may be revoked at any
tome before the comm. Of the acceptance is
complete as against the acceptor, but not
afterwards.

18. CARBOLIC SMOKE BALL