Offer and acceptance - meaning of offer and acceptance , elements and mere/mental acceptance and legal rules for an offer and acceptance.

1. PREPARED BY : KHUSHI GOYAL

2. LEARNING OBJECTIVES
 Meaning of an offer or proposal
 Elements of an offer
 Legal rules for a proposal or offer
 Meaning of an acceptance
 Legal rules for an acceptance

3. MEANING OF AN OFFER OR
PROPOSAL
 In an agreement , one party makes a
proposal and the other party gives
acceptance to it .
 According to section 2 “the person making
the proposal is called promiser and the
person accepting the proposal is called
promisee.
 The british refer to it as an “offer” but in
Indian Contract , it is called a proposal.

4. ELEMENTS OF AN OFFER
 Existence of two parties.
 Choice to do or not to do (abstain).
 There must an intension to create an offer.
 The invitation of an offer should be made.
 Intension to make a legal obligation.

5. LEGAL RULES FOR A PROPOSAL OR
OFFER.
 The offer must be made to create a legal
obligation.
 The terms of the offer must be unambiguous
and definite. For eg : a car is offered for Rs
5lakhs .it should not like a car is offered for Rs
4-5lakhs.
 The offer may be general or specific. It means a
offer may be for an individual person or may be
for public.
 The offer may be expressed or implied. It may
be expressed orally ,written or through actions.

6. CONTINUED...
 The offer should be a request not an order.
 The offer must be for possible act. No offer
can be given for any act that cannot be
happen in actual.
 The offer must be communicated. Promisor
must communicate the offer so that it can
come in everyone’s knowledge .

7. MEANING OF AN ACCEPTANCE
 As per section 2 (b) the person to whom the
offer is made gives his assent , the offer is
said to be accepted.
 A proposal when accepted becomes a
promise.

8. LEGAL RULES FOR AN ACCEPTANCE
 Acceptance must be absolute and unconditional:
As per section 7 an acceptance must be absolute
and condition free. For eg : if A offered bike to B for
Rs 50,000 and B replies that he will accept this
offer if the value of offer reduced to Rs
40,000 . Then this acceptance is no acceptance.
 Acceptance must be to an offer :
An acceptance should be a response to an offer.
One cannot accept what is not offered to him.

9. CONTINUED…
 Acceptance must be made in the mode prescribed :
If any mode of acceptance is prescribed in the
proposal it shall be accepted in the manner
prescribed.
 Acceptance must be given within a specified time :
Acceptance to an offer must be given within the time
specified in the proposal but if no time specified
acceptance must be given within a reasonable time.
 Acceptance may be expressed or implied:
Expressed acceptance may be in written or oral and
implied acceptance can be given through actions .

10. MENTAL ACCEPTANCE IS NO
ACCEPTANCE
 Mental acceptance is which is not
expressed in words or in writing is not
recognised as acceptance from the legal
point of view .
 Acceptance should be something more
than mental acceptance . In other words,
there must not only be a desire to accept ,
but the desire must be expressed in words
– oral or written .