Business law presentation on a topic communication of offer and acceptance

1. BUSINESS LAW
COMMUNICATION OF OFFER,
COMMUNICATION OF
ACCEPTANCE, TIME OF REVOCATION OF AN
OFFER AND
ACCEPTANCE, AND LOSS OF LETTER OF
ACCEPTANCE.

2. CONTENT
01
02
03
04
05
06
07
INTRODUCTION
COMMUNICATION OF OFFER AND
ACCEPTANCE
TIME OF REVOCATION OF OFFER
AND ACCEPTANCE
ESSENTIAL OF VALID OFFER
ESSENTIAL OF VALID ACCEPTANCE
LOSE OF LETTER OF
ACCEPTANCE
CONCLUSION

3. INTRODUCTION
Definition of Contract:
A contract is a legally binding agreement
between two or more parties that creates
rights and obligations enforceable by law.
Communication of offer
Communication of Acceptance

4. Communication of
offer
INTRODUCTION
Communication of
Acceptance
Definition: Acceptance is the assent to the
terms of an offer, creating a binding
contract.
Communication: Acceptance must be
communicated to the offeror.
Example: The buyer responds to the seller's
car offer, stating they agree to purchase it
at the advertised price. Communication is
key.
Definition: An offer is a clear expression of
willingness to enter into a contract on
specific terms.
Communication: Offer must be
communicated to the offeree.
Example: A seller advertises a car for sale
at a specific price. When a buyer contacts
the seller expressing interest, the offer is
communicated.

5. Revocation of offer
Revocation of
acceptance
TIME OF REVOCATION
• Time of Revocation of an Offer:
Revocation of Offer: Offer can be revoked before acceptance unless it's an irrevocable offer.
Example: The seller can withdraw the car offer before the buyer accepts, terminating the offer.
• Time of Revocation of an Acceptance
Revocation of Acceptance: Generally, acceptance is irrevocable once communicated. However, certain circumstances may allow
revocation.
Example: The buyer accepts the car offer but later discovers a major undisclosed issue. They may attempt to revoke the acceptance
if permitted by law.

6. Revocation of offer
TIME OF REVOCATION
• Notice of Revocation: notice of revocation is the communication by the offeror to the offeree indicating
the withdrawal or cancellation of the offer before the offeree has accepted it. It's crucial to understand
that revocation must be effectively communicated to the offeree to be valid.
• Example:
• Scenario: A offers to sell a laptop to B for $800 on Monday. A communicates the offer to B on
Monday On Wednesday, A has second thoughts and decides not to sell the laptop to B at the
offered price. A sends an email to B on Wednesday evening, revoking the offer. However, B
checks their email only on Thursday and, in the meantime, decides to accept the offer. The
revocation is not effective because B accepted the offer before receiving the revocation notice.
If B had not yet accepted the offer when they received the email revocation on Thursday, the
revocation would be effective, and the offer would be considered withdrawn.

7. Revocation of offer
TIME OF REVOCATION
Lapse of time: refers to the expiration or passing of a specified period during which an action
should have been taken. In contract law, it is often associated with the duration within which an
offer can be accepted.
• Example:
• Company A offers to sell a rare collectible to Company B for $1,000 and states that the offer is
valid for 14 day. If Company B does not accept the offer within the specified 14 days, the offer
lapses or expires. After the lapse of time, Company A is no longer bound by the original offer
terms.

8. Revocation of offer
TIME OF REVOCATION
Death of the offeror:
• Example:
Mr. Smith offers to sell his vintage car to Mrs. Johnson for $20,000.
Subsequent Event: Unfortunately, Mr. Smith passes away before Mrs. Johnson accepts the offer.
Effect: In general, the death of the offeror revokes the offer. Mrs. Johnson is no longer able to
accept the offer because it ceased to exist upon Mr. Smith's death.

9. Revocation of offer
TIME OF REVOCATION
Revocation of Offer by Offeror: the offeror typically has the right to revoke or withdraw their offer
under certain circumstances before it is accepted by the offeree.
• Example:
• John offers to sell his house to Sarah for $300,000. Before Sarah communicates her
acceptance, John learns about a higher market value for his property and decides to sell it at a
higher price. John, as the offeror, can revoke the original offer at any time before Sarah accepts
it. If John informs Sarah of the revocation before she accepts, the offer becomes invalid.

10. Revocation of offer
TIME OF REVOCATION
Counter offer occurs when the offeree responds to the original offer with a new proposal, changing
some of the terms. A counteroffer acts as both a rejection of the original offer and a new offer.
• Example:
• Seller X offers to sell a laptop to Buyer Y for $800. Buyer Y responds, saying, "I appreciate the
offer, but I can only pay $750 for the laptop. Buyer Y's response constitutes a counteroffer. The
original offer of $800 is now void, and Seller X can choose to accept, reject, or make a
counteroffer in return.

11. ESSENTIAL OF VALID
OFFER
• It must be implied and express
• it must be specific and general.
• it must be clear and define.
• it must create a legal relation.

12. ESSENTIAL OF VALID
ACCEPTANCE
• It must be implied and express
• it must be absolute or unconditional.
• it must be prescribe manner.
• It must be accepted by offeree.
• it must be communication to matter.

13. LOSE OF LETTER OF
ACCEPTANCE
• Definition: If acceptance is communicated by letter, acceptance is
generally complete when the letter is posted.
• Example: Company Y mails an acceptance letter to Company X. If the
letter is lost in the mail but Company X is unaware of the
acceptance when attempting to revoke, acceptance is still valid.

14. LOSE OF LETTER OF
ACCEPTANCE
• Position of offeror:
• the position of the offeror becomes crucial when a letter of acceptance is lost in transit.
• Example: Sarah offers to sell her property to Alex for $250,000 and sends an acceptance letter via mail.
Unfortunately, the letter gets lost in transit, and Alex is unaware of Sarah's acceptance. Sarah, as the offeror,
might not be aware of the lost letter. If she learns about the loss and still wants to proceed with the sale, she
has options.Sarah can choose to resend the acceptance letter, confirm the agreement through other means
(like email or phone), or take no action if she's no longer interested in the sale.

15. LOSE OF LETTER OF
ACCEPTANCE
• Position of acceptance:
• The acceptor is the party who agrees to the terms of an offer, creating a binding contract. The
acceptor's position is crucial in determining the enforceability of the agreement.
• Example:
• Company A offers to sell 100 units of a product to Company B for $10,000.Company A offers to
sell 100 units of a product to Company B for $10,000 Company B reviews the offer and sends a
formal email accepting the terms and confirming the purchase. In this case, Company B is the
acceptor. By clearly communicating acceptance, they signal their agreement to the terms
proposed by Company A.Upon receiving Company B’s acceptance, a legally binding contract is
formed. Company B is now obligated to pay $10,000, and Company A is obligated to deliver the
100 units.

16. LOSE OF LETTER OF
ACCEPTANCE
• Accidental formation of a contract can occur if the offeror is unaware of the loss, and the offeree
assumes the acceptance has taken effect.
• Example:
• Alice sends a job offer letter to Bob via mail, and Bob decides to accept the job. Bob promptly
mails his acceptance letter back to Alice. However, due to unforeseen circumstances, the
acceptance letter is lost in the mail and never reaches Alice. Despite the loss, the contract is still
considered formed at the moment Bob posted his acceptance.

17. CONCLUSION
Ceo Of Ingoude
Company
Ceo Of Ingoude
Company
• A thorough grasp of the dynamics pertaining to the exchange of offers and acceptances is
necessary to successfully navigate the complexities involved in contract formation. The process
becomes more complicated due to the timing of these communications and the possibility of
revocation. Contractual engagements require careful thinking and awareness, as demonstrated by
the principle of acceptance upon communication and the difficulties associated with losing letters
of acceptance. In a world where efficient dialogue is Parties involved in contract development
should be cautious about the terms, timing, and potential traps in a world where effective
communication is essential. Through the adoption of optimal methodologies, cultivation of
lucidity, and consideration of legal subtleties, individuals and organisations can confidently
traverse the process of contract formation

18. THANK YOU