2. LEARNING OBJECTIVES
Meaning of an offer or proposal
Elements of an offer
Legal rules for a proposal or offer
Meaning of an acceptance
Legal rules for an acceptance
3. MEANING OF AN OFFER OR
PROPOSAL
In an agreement , one party makes a
proposal and the other party gives
acceptance to it .
According to section 2 “the person making
the proposal is called promiser and the
person accepting the proposal is called
promisee.
The british refer to it as an “offer” but in
Indian Contract , it is called a proposal.
4. ELEMENTS OF AN OFFER
Existence of two parties.
Choice to do or not to do (abstain).
There must an intension to create an offer.
The invitation of an offer should be made.
Intension to make a legal obligation.
5. LEGAL RULES FOR A PROPOSAL OR
OFFER.
The offer must be made to create a legal
obligation.
The terms of the offer must be unambiguous
and definite. For eg : a car is offered for Rs
5lakhs .it should not like a car is offered for Rs
4-5lakhs.
The offer may be general or specific. It means a
offer may be for an individual person or may be
for public.
The offer may be expressed or implied. It may
be expressed orally ,written or through actions.
6. CONTINUED...
The offer should be a request not an order.
The offer must be for possible act. No offer
can be given for any act that cannot be
happen in actual.
The offer must be communicated. Promisor
must communicate the offer so that it can
come in everyone’s knowledge .
7. MEANING OF AN ACCEPTANCE
As per section 2 (b) the person to whom the
offer is made gives his assent , the offer is
said to be accepted.
A proposal when accepted becomes a
promise.
8. LEGAL RULES FOR AN ACCEPTANCE
Acceptance must be absolute and unconditional:
As per section 7 an acceptance must be absolute
and condition free. For eg : if A offered bike to B for
Rs 50,000 and B replies that he will accept this
offer if the value of offer reduced to Rs
40,000 . Then this acceptance is no acceptance.
Acceptance must be to an offer :
An acceptance should be a response to an offer.
One cannot accept what is not offered to him.
9. CONTINUED…
Acceptance must be made in the mode prescribed :
If any mode of acceptance is prescribed in the
proposal it shall be accepted in the manner
prescribed.
Acceptance must be given within a specified time :
Acceptance to an offer must be given within the time
specified in the proposal but if no time specified
acceptance must be given within a reasonable time.
Acceptance may be expressed or implied:
Expressed acceptance may be in written or oral and
implied acceptance can be given through actions .
10. MENTAL ACCEPTANCE IS NO
ACCEPTANCE
Mental acceptance is which is not
expressed in words or in writing is not
recognised as acceptance from the legal
point of view .
Acceptance should be something more
than mental acceptance . In other words,
there must not only be a desire to accept ,
but the desire must be expressed in words
– oral or written .
