INDIAN CONTRACT ACT 1872 || STUDY NOTES || OFFER AND ACCEPTANCE || CMA INTERMEDIATE

 OFFER AND ACCEPTANCE

Definition of Offer

When one person signifies to another his willingness to do or abstain from doing something, with a view to obtaining the assent of that other to such act or abstinence, this is said to make a proposal.

Types of offer

• Express offer :- An offer made by express of words either spoken or written is called express offer.

• Implied offer :- An offer which is made by the conduct of the parties or circumstances of the case is called as implied offer.

• Specific offer :- An offer is made to a DEFINITE PERSON or a  CLASS OF PERSON, is called specific offer, it is accepted by only by that person or a class of person whom offer is made.

• General offer :- When an offer is not made to the specific person or class of person is called general offer, it is accepted by anyone who fulfill the terms & condition of an offer.

• Cross offer :- An offer when two parties make an identical offers to each other, in ignorance of each other's offer this offer is called cross offer.

• Counter offer :- When an offeree offer to qualified acceptance of the subject to modifications and variations in the terms of the original offer, this is called counter offer.

• Standing/Continuing offer :- When an offer is open for acceptance for a period of time this is called standing/continuing offer.

Essentials of a Valid Offer

The following essential of a valid offer :-

• Intention to obtain acceptance :- When an offer is made with the motive of acceptance by the offeree.
• Intention to create legal relation :- When an offer is made to the other party with an intention to create legal relationship.
• Certainty :- The terms of offer must be certain, definite and unambiguous.
• Communication :- The offer must be communicated to the offeree. Unless the odder is communicated, there can be no acceptance of it.
• Offer should not contain any term non-compliance of which leads to acceptance.
• A mere statement of price is not an offer to sell
• An offer is different from invitation to an offer
• An offer may be express or implied
• An offer may be conditional or Unconditional

Lapse or Termination of an OFFER

• By Lapse of Time :- When an offer is not accepted within the time limited prescribed in the offer. the offer is lapsed

• On Rejection by the Offeree :- An offer is lapsed when it is reject by the offeree.

• By Revocation :- An offer is lapse when it is withdrawal or cancelled by the offeror before it acceptance.

• By Death or Insanity of the Offeror or the Offeree :- An offer is lapse by the death or insanity of offeror or offeree.

• By Non-Acceptance in the prescribed Mode :- An offer is lapse if an acceptance is not made in the mode prescribed by the offeror.

• On Non Fulfillment of Condition Prescribed :- If an condition is not fulfill before acceptance which require to fulfill. the offer is lapse.

• On Counter Offer :- An offer is lapsed if the counter offer is made by the offeree.

• On Cross Offer :- An offer is lapse if the cross offer is made by the offeree.

• By Change of Law :- An offer is lapse by change in law related to contract.

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