Offer & Acceptance

The Indian Contract Act 1872

Contract

Legal aspect

Lawful Consideration

Offer + Acceptance Contract

Essentials of a Valid Contract

Offer and acceptanceGenuine assent (Free Consent)LegalityConsiderationCapacityWriting

What distinguishes a contract from other agreements? -Contracts are enforceable by law.

What two actions are necessary to form an agreement which may result in a contract? -An offer and an acceptance

Offer & AcceptanceOfferor – one who makes the offerOfferee – the one whom it is made to.

Terms must be definite and accepted without change by the party to whom it was intended to be offered.

Without offer and acceptance the courts would not have an agreement that could be enforced.`

Offer

An Offer is :

An expression of willingness to contract on certain terms, made with the intention that it shall become binding as soon as it is accepted by the person to whom it is addressed.

Offers require verbal or written acceptance (forming what are known as bilateral contracts), with the general offers the performance of some act may be valid acceptance (forming a unilateral contract) An offer may be: q Express – either verbal or written, or q Implied – from conduct or circumstances. Sometimes, nothing is said at all but an offer is obvious from the actions.

Requirements of an OfferOffer must be communicated to the offereeThere must be a common intentionThere should be a reference to the legal relations between parties.Terms must be complete and defined clearly Preliminary negotiations should be done to avoid cross offer.Conditions if any must be clearly indicated.

Termination of an OfferRefusal Death of the either of partyLapse of the time durationFailure of the pre – conditions mentioned/ appliedRevocation of Acceptance of offer entering into contract

Acceptance 2(b)This will normally mean that the offer is no longer available to anyone else.

Offer can be defined as:Once the offeree signifies his approval unconditionally, proposal is said to be accepted.Aproposal once accepted becomes a proposal.

Rules of AcceptanceCommunication of acceptanceAcceptance must be absolute and unqualifiedMentan accpetance is not sufficient(Silnece)Acceptance of a proposal with the terms and conditions mentioned and impliedNeed not be expressed in words alwaysIgnorance of a proposal, is no acceptanceAcceptance must be given within a reasonable time.Acceptance must be given before lapse or revocation or withdrawal.

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