OFFER AND OFFER AND ACCEPTANCEACCEPTANCE

Offer Offer

An offer is a proposal by one party to An offer is a proposal by one party to another to enter into a legally binding another to enter into a legally binding agreement with him.agreement with him.

Proposal is made when he “signifies to Proposal is made when he “signifies to another his willingness to do or to abstain another his willingness to do or to abstain from doing any thing, with a view to from doing any thing, with a view to obtaining the assent of that other to such obtaining the assent of that other to such act or abstinence” act or abstinence”

TypesTypes

Express – by words spoken or writtenExpress – by words spoken or written Implied – from the conduct of partiesImplied – from the conduct of partiesSpecific – can be accepted only by Specific – can be accepted only by

person to whom it is madeperson to whom it is madeGeneral – to the world at large General – to the world at large Offeror – person making the offerOfferor – person making the offerOfferee – To whom offer is made Offeree – To whom offer is made Acceptor – when he accepts the offerAcceptor – when he accepts the offer

Legal rules as to offerLegal rules as to offer

Is capable of being accepted and Is capable of being accepted and giving rise to legal relationshipgiving rise to legal relationship

Terms of offer must be definite, Terms of offer must be definite, unambiguous, and certainunambiguous, and certain

An offer may be distinguished from-An offer may be distinguished from-(a)(a) Declaration of intention and Declaration of intention and

announcementannouncement(b)(b) An invitation to make an offer or to doAn invitation to make an offer or to do

businessbusiness

Offer must be communicatedOffer must be communicatedMust be made with a view of obtaining Must be made with a view of obtaining

the accentthe accentShould not contain a term the non- Should not contain a term the non-

compliance of which may be assumed compliance of which may be assumed to amount to acceptanceto amount to acceptance

A statement of price is not an offerA statement of price is not an offer

AcceptanceAcceptance

Is the act of assenting by the offeree to an Is the act of assenting by the offeree to an offer. It is the manifestation by the offeree offer. It is the manifestation by the offeree of his willingness to be bound by the terms of his willingness to be bound by the terms of the offer.of the offer.

May be express or implied May be express or implied

Legal rules as to acceptanceLegal rules as to acceptance

Must be absolute and unqualifiedMust be absolute and unqualifiedCommunicated to the offerorCommunicated to the offerorMust be according to the mode Must be according to the mode

prescribed or usual and reasonable modeprescribed or usual and reasonable modeMust be given with in a reasonable timeMust be given with in a reasonable time It cannot precede an offerIt cannot precede an offer

Must be given by party or parties to whom Must be given by party or parties to whom the offer is madethe offer is made

It must be given before the offer lapses or It must be given before the offer lapses or before the offer is withdrawnbefore the offer is withdrawn

It cannot be implied from silence It cannot be implied from silence

CommunicationCommunication

When communication is complete?When communication is complete?

Communication of offer: when it comes to Communication of offer: when it comes to the knowledge of the person to whom it the knowledge of the person to whom it is made.is made.

Communication of acceptance:Communication of acceptance:

As against the proposer when it is put into As against the proposer when it is put into a course of transmission to him.a course of transmission to him.

As against the acceptor when it comes to As against the acceptor when it comes to the knowledge of the proposerthe knowledge of the proposer

Communication of revocationCommunication of revocation

Is complete as against the person who Is complete as against the person who makes it - when it is put into a course of makes it - when it is put into a course of transmission to the person to whom it is transmission to the person to whom it is mademade

Is complete as against the person to Is complete as against the person to whom it is made – when it comes to his whom it is made – when it comes to his knowledge knowledge

Time of revocationTime of revocation

Of ProposalOf ProposalMay be revoked at any time before the May be revoked at any time before the communication of acceptance is communication of acceptance is complete as against the proposercomplete as against the proposer

Of AcceptanceOf AcceptanceAt any time before the communication At any time before the communication of the acceptance is complete as of the acceptance is complete as against the acceptor.against the acceptor.

When does an offer come to an When does an offer come to an end?end?

RevocationRevocationLapse of timeLapse of timeNon- fulfilment of a conditionNon- fulfilment of a conditionBy death or insanityBy death or insanity If counter-offer is madeIf counter-offer is madeNot accepted according to prescribed Not accepted according to prescribed

modemode If the law is changedIf the law is changed