Essential requirements of a valid offer: Offer must be made
with a view to obtain acceptance. Offer must be made with the
intention to create legal relations. Terms of offer must be
definite,unambiguous & certain or capable of being made
certain.The term of offer must not be loose,vague or
ambiguous.10,11
Offer must be distinguished from:(a) a mere declaration of
intention or (b) an invitation to offer.12,13 The offer must be
communicated to offeree.14 The offer must not contain a term the
non-compliance of which may be assumed to amount to
acceptance.14
A tender is an offer as it is in response to an invitation to
offer. (a)Specific15 or definite (b)Standing16 Special terms in
offer must be duly brought to the notice of the offeree at the time
the offer is made.17 Two identical cross-offers do not make a
contract.18
X Y X Y Cross Offer
Termination or Lapse of Offer: The offer lapses after
stipulated or reasonable time.19 An offer lapses by the death or
insanity of the offeror or offeree. An offer terminates when
rejected by the offeree. An offer terminates when revoked by the
offeror before acceptance.
An offer terminates by not being accepted in the mode
prescribed or if no mode is prescribed in some usual &
reasonable manner. A conditional offer terminates when conditions
is not accepted by the offeree.20 It terminates by counter offer by
the offeree.
Acceptance Acceptance how made: Offeree Acceptance Assent to
proposal
Assent Expressed Implied writing Word of mouth By performance
of some Required act.1 Surrounding circumstances Or the conduct of
the parties.2
WHO CAN ACCEPT?
Essentials of a valid Acceptance: Acceptance must be Absolute
& Unqualified4 Acceptance must be communicated to the offeror5(
the acceptance of an offer can not implied from the silence of the
offeree or his failure to answer)6 Acceptance must be according to
the mode prescribed7
Agreement to agree in future.8 It must be given within the time
specified or within reasonable time It must be in response to offer
It must be made before the offer lapses It must be given by the
person to whom the offer is made Communication of offer &
acceptance Revocation of offer & acceptance
Communication Of Offer & Acceptance: Sec.4: The comm. Of a
proposal is complete when it comes to the knowledge of the person
to whom it is made. E.g. The comm. Of acceptance is complete: 1. as
against the proposer, when it is put into a course of transmission
to him, so as to be out of the power of the acceptor
2. As against the acceptor, when it comes to the knowledge of
the proposer (ex.) The comm. Of a revocation(of an offer or an
acceptance) is complete: 1.as against the person 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.
2.as against the person to whom it is made when it comes to his
knowledge.
Revocation of Proposal & Acceptance: Sec 5 provides that a
proposal may be revoked at any time before the comm. Of its
acceptance is complete as against the proposer, but not afterwards.
Also an acceptance may be revoked at any tome before the comm. Of
the acceptance is complete as against the acceptor, but not
afterwards.
