Offer and acceptance

offer an acceptance - essential elements of a valid contract

1. RENU VERMA
1
OFFER
AND
ACCEPTANCE

2. OFFER
RENU VERMA
2
AN OFFER IS A PROPOSAL BY ONE PARTY TO
ANOTHER TO ENTER INTO A LEGALLY BINDING
AGREEMENT WITH HIM.
When one person signifies to another his willingness
to do or to abstain from doing anything, with a view
to obtaining the assent of that other to such act or
abstinence, he is said to make a proposal

3. OFFER
RENU VERMA
3
When the person to whom the proposal is made,
signifies his assent thereto, the proposal is said to be
accepted. A proposal, when accepted, becomes a
promise.
The person making the proposal/offer is called the
"promisor“, proposer, offeror, and the person to
whom it is made is called the offereeor proposee.
The person accepting the proposal is called
"promisee“ or acceptor.

4. OFFER
RENU VERMA
4
May be by express words, spoken or written.
Express offer.
May also be implied from the conduct of the
parties or the circumstances of the case.
Implied offer.
When made to a definite person –specific
offer. Only that person can accept.
When made to the world at large –general
offer. Any person/s may accept.

5. RULES IN REGARD TO OFFER
RENU VERMA
5
SHOULD BE CAPABLE OF BEING ACCEPTED
TERMS MUST BE DEFINITE, UNAMBIGUOUS (HAVING ONLY
ONE MEANING) AND CERTAIN AND NOT LOOSE AND VAGUE
(NOT CERTAIN OR DEFINITE).
IS NOT
A DECLARATION OF INTENTION AND AN ANNOUNCEMENT
AN INVITATION TO MAKE AN OFFER OR DO BUSINESS
NEWS PAPER ADVERTISEMENTS
STATEMENT OF PRICE
TENDERS
MUST BE COMMUNICATED
MUST BE MADE WITH AN INTERNTION OF OBTAINING THE
ASSENT
SHOULD NOT CONTAIN A TERM THE NON -COMPLIANCE OF
WHICH MAY BE ASSUMED TO AMOUNT TO ACCEPTANCE

6. ACCEPTANCE
RENU VERMA
6
CONTRACT EMERGES FROM
THE ACCEPTANCE OF AN
OFFER
IS AN ACT OF ASSENTING TO
THE OFFER BY THE OFFEREE
MAY AGAIN BE IMPLIED OR
EXPRESSED

7. WHO CAN ACCEPT?
RENU VERMA
7
PARTICULAR OFFER / SPECIFIC
OFFER --BY HIM ALONE
GERERAL OFFER –ANY PERSON
TO WHOM THE OFFER IS MADE
MAY ACCEPT IT

8. LEGAL RULES
RENU VERMA
8
MUST BE ABSOLUTE AND UNQUALIFIED
MUST BE COMMUNICATED TO THE OFFEROR
MUST BE ACCORDING TO THE MODE PRESCRIBED
OR USUAL AND RESONABLE MODE
MUST BE GIVEN WITHIN A REASONABLE TIME
CANNOT PRECEDE AN OFFER
MUST SHOW AN INTENTION TO ABIDE BY THE
OFFER
MUST BE GIVEN BY WHO WAS OFFERED
MUST BE GIVEN BEFORE THE OFFER GETS
LAPSED OR WITHDRAWN
CANNOT BE IMPLIED FROM SILENCE

9. COMMUNICATION
OF
OFFER,
ACCEPTANCE AND
REVOCATION
RENU VERMA
9

10. RENU VERMA
10
COF–COMPLETE –COMES TO THE KNOWLEDGE
OF THE PERSON TO WHOM IT IS MADE
COA–COMPLETE
PROPOSER –WHEN IT IS PUT INTO A
COURSE OF TRANSMISSION TO HIM, SO AS TO
BE OUT OF THE POWER OF THE ACCEPTOR
ACCEPTOR –WHEN IT COMES TO THE
KNOWLEDGE OF THE PROPOSER
COR–COMPLETE
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
TO WHOM IT IS MADE –WHEN IT COMES TO
HIS KNOWLEDGE

11. COMMUNICATION OF OFFER
RENU VERMA
11

12. COMMUNICATION OF ACCEPTANCE
RENU VERMA
12
XO –A
30
TH
--COMPLETE FOR Y
POST AFTER 21 ST --COMPLETE FOR X
YA -A
21 ST

13. REVOCATION
RENU VERMA
13
TAKING BACK, RECALLING OR
WITHDRAWAL
MAY BE FOR OFFER OR
ACCEPTANCE

14. COR -OFFER
RENU VERMA
14
•XO –R
•5
TH
AFTER 5
TH
•6
TH
TO
19
TH
POST
•YA –R
•20
TH
AFTER 20
TH
WHEN LETTER
REACHES

15. COR -ACCEPTANCE
RENU VERMA
15

16. WHEN OFFER COMES TO END : -
RENU VERMA
16
REVOCATION OR LAPSE
BY COMMUNICATION OF NOTICE OF REVOCATION,
BEFORE ACCEPTANCE IS COMPLETE
BY LAPSE OF TIME / REASONABLE TIME
BY NON-FULFILMENT BY THE OFFEREE OF A
CONDITION PRECEDENT
BY DEATH OR INSANITY OF THE OFFEROR
COUNTER OFFER
IF NOT ACCEPTED ACCORDING TO PRESCRIBED OR
USUAL MODE
CHANGE IN LAW

17. RENU VERMA 17