2. Offer and Acceptance
An agreement arises when one party makes an offer
and the other party accepts it.
When a person shows his willingness to do or not to
do something to obtain the consent of other person ,
it is considered a proposal.
OFFER/PROPOSAL
3. Parties of the contract
Offeror/Promisor:
The person making the offer.
Offeree/Promisee /Acceptor.
The person to whom the offer is made is called
the offeree.
The person accepting the offer called
promisee or acceptor.
4. Essentials of a Valid Offer
1. An offer which is made by words spoken
or written.
An Offer appears from the actions, Conduct
of parties or circumstance of the case.
5. It must create Legal Relations.
Parties intend to create legal relations
between the parties.
6. It May be specific or General
Offer made to a specific person.
A general offer is one which is made to public
in general. Can be accepted by any one.
7. It must be definite and clear
Terms of offer must be clear.
Not definite and clear , cannot be called valid
offer.
8. It must be communicated
Legally Effective only when it is
communicated to the offeree.
Brought to the knowledge/notice of offeree.
It must not contain any negative condition.
9. It is different from Invitation to
offer.
In invitation to offer ,the person making
invitation does not make an offer but only
invites the other party to make an offer.
A mere declaration of intention and not to a
proposal.
Prospectus issued by the University.
Prospectus issued by the Company.
Invitation to Bid, Price Tag display, catalogue.
10. REVOCATION OF OFFER.(Sec-6)
Notice of Revocation:
Notice of revocation
Before acceptance.
Lapse of Time.
Terminate, when specified time is expired.
Lapse of Reasonable time, depends upon
the circumstance of each case.
11. Failure to fulfill condition.
Fails to fulfill the Condition mention it.
Death or Insanity of the Offeror.
Before acceptance, comes to knowledge of
acceptor.
Revocation of offer by offeree.
Offeree rejects the offer
Communicate the rejection to the, offeror.
(Period not Expire)
12. Subsequent illegality.
Become illegal due to change of law before its
acceptance.
Destruction of Subject matter.
Subject matter of offer destroys before the
acceptance.
14. Essentials of Valid Acceptance
It must be given by the Offeree.
It must be Absolute and Unconditional
It must be in Prescribed Manner
It must be Communicated to the offerror.
15. It may be Express or Implied
It must Follow the offer
It must be given within reasonable time.
16. Conclusion
Offer and acceptance are the two basic
elements which comprise an agreement.
Offer has no legal consequence or value
unless it is accepted.
Formation of an agreement becomes
complete on the acceptance of offer.