Business law presentation on communication of offer and acceptance

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. PRESENTED BY: MUQADDAS TARIQ

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 INTR O DUCTION 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 Scenario: A offers to sell a laptop to B for $800 on Monday. 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 vali d. 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 Scenario: A offers to sell a laptop to B for $800 on Monday. 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 da y. 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 Scenario: A offers to sell a laptop to B for $800 on Monday. 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 Scenario: A offers to sell a laptop to B for $800 on Monday. TIME OF REVOCATION Revocation of Offer by Offeror : t he 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 Scenario: A offers to sell a laptop to B for $800 on Monday. TIME OF REVOCATION Co unte r 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 m ail. 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 Ac cidental 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

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