This document discusses the concepts of offer and acceptance in contract law. It defines an offer as an expression of willingness by one party to enter an agreement with another party. It lists the basic characteristics of a proposal or offer, including that it must be communicated to the other party, be definite, include clear terms and conditions, and not obligate the other party to reply. The document also defines acceptance as signifying assent or approval to the terms of an offer and notes the essentials of a valid acceptance, such as being absolute, unconditional, and communicated within a reasonable time period before the offer lapses.

1. Offer & Acceptance
Section 2(a)
Proposal is also called ‘Offer’
PPT BY SANDEEP SHARMA

2. Offer: Meaning
It is an expression of willingness by one person
to another to enter into an agreement on the
terms stated by him with an intention to obtain
the assent of the other.
PPT BY SANDEEP SHARMA

3. Basic characteristics of proposal
i. 2 Parties or more
ii. It may be positive or negative
iii. It must be made to obtain assent
iv. Intention to create legal relations
v. It must be communicated (express, implied)
PPT BY SANDEEP SHARMA

4. Basic characteristics of proposal
vi. It must be definite
vii. T&C must be communicated with the offer
viii. It should not bind other party to reply
ix. Tender may be standing offer
PPT BY SANDEEP SHARMA

5. Types of Offers
 On the basis of : Mode of Making
a) Express
b) Implied
 On the basis of : Offerees
a) Specific
b) General
 On the basis of : Nature of offer
a) Cross
b) Counter
c) Standing
PPT BY SANDEEP SHARMA

6. What is not proposal ?
I. Intention to put a Proposal (eg. Lalji sent a letter to
Kalaji stating the terms on which he was prepared to
do business).
II. Invitation to Proposal/Offer (eg. Catalogue, price list,
menu card, price tags, job advertisement)
PPT BY SANDEEP SHARMA

7. Invitation
to Offer
Offer Acceptance
PPT BY SANDEEP SHARMA

8. Acceptance: Meaning
For creation of any valid Contract, it is essential
that a party (the Offeror) makes a Proposal, on
which acceptance is given by the other party
(the Offeree).
PPT BY SANDEEP SHARMA

9. Proposer
Offeror
Promisor
(Giver)
Acceptor
Offeree
Promisee
(Receiver)
PPT BY SANDEEP SHARMA

10. Acceptance: Definition
According to Section 2(b) of ICA, “When the person
to whom, the proposal is made signifies his assent
thereto, the proposal is said to be accepted.”
Word : Meaning
Signifies : Shows
Assent : Approval
Thereto : to that
PPT BY SANDEEP SHARMA

11. Essentials of Acceptance
i. It must be absolute & Unconditional
ii. It should be accepted by the person to whom the
proposal is made
iii. It must be in prescribed manner
iv. It may be Express or Implied
v. It must be given with specified/reasonable time.
PPT BY SANDEEP SHARMA

12. Essentials of Acceptance
vi. It must be given before the offer has been
withdrawn/lapsed.
vii. The acceptance must be given only after the
communication of offer is complete.
viii. It must be fully communicated
ix. It must be from competent person
x. It should be communicated to the Offeror himself
PPT BY SANDEEP SHARMA