Offer And Acceptance in Contract Law Notes Pdf – Indian Contract Act 1872
In this web , we explain offer and acceptance definition, type of offer and acceptance, example of offer and acceptance and legal rules of offer and acceptance. And also described the revocation of offer and acceptance.we share offer and acceptance notes pdf.
Offer
The term offer or proposal is defined in section 2(a) of the Indian contract act, as under
“When a person signifies his willingness to do or not to do with a view to obtain the consent of that person. it is known as offer.”
The person making the offer is known as ‘offerer’ , ‘proposer’ , ‘promisor’. And the person to whom the offer is made is known as‘offeree’ , ‘promisee’.
Types of offer
- General offer
- Specific offer
- Express offer
- Implied offer
1. General offer:
Made to the public at large. Anyone from the public can accept this offer.(carlill vs. Smoke ball co.)
2. Specific offer:
Made only to a specified person.
3. Express offer:
Two types of Express offer
- Oral offer
- Written offer
4. Implied offer :
Implied offer which is inferred from the conduct of the parties.( examples: public bus, ATM, self services restaurant)
Legal Rules as to offer :
1. Offer must be capable to being accepted.And giving rise to legal relationship.
An offer must be such that when the offer is accepted it will result in a valid contract. A social invitation cannot be regarded as an offer, because if this invitation is accepted it will not give rise to any legal relationship.
Example:- A invited B to a dinner and B accepted the invitation. It is a social invitation. And A will not be responsible if he fails to provide dinner to B.
2. Terms of offer must be definite, clear and unembigous.
If the terms of the offer are undefinite, uncertain, and vague then no contract will come into existence.
Example:- A offered to sell to B ‘a hundred tonnes of oil’. The offer is uncertain because there is nothing to show what kind of oil is intended to be sold.
3. Offer must be communicated.
The offer is done only when it has been communicated to the offeree. The offer is communicated wheather it can be or cannot be accepted. This offer is always valid.
4. A mere declaration of intention is not an offer.
Sometimes, an individual declares that he has the intention to try and do something. This types of intentions are not a offer.
Example :- P, an auctioneer, announced that specified goods will be sold by auction on 15th August or a particular day. This statement is not a offer. This is only the one type of the declaration of intention.
5. The offer must express the final willingness of the offeror :-
Sometimes , a party does not give the his final willingnessbut purpose certain terms on which he is willing to negotiate. In this case, he is not making an offer because he is not expressing his final willingness to enter into a contract.
6. A statement of price isn’t a offer. Social invitation is not an offer.
Acceptance
The term acceptance is defined in section 2(b) of the Indian contract law,as under
“when the person to whom the proposal is made signifies his consent there to, the proposal is said to br accepted. A proposal when accepted becomes a promise”
Acceptance to an offer is what a lighted match-stick is to a series of gun powder.
Legal rules as to acceptance:-
1. Acceptance must be absolute and unqualified.
2. Acceptance must be as per the modes prescribed or usual and reasonable modes
3. It must be communicated.
4. Acceptance must be made within a lapse of time.
5. It cannot be precede an offer.
6. It must show final willingness on the part of the acceptance.
7. Acceptance must be made only by the person to whom offer is made.
8. The acceptance must be express or implied.
9. The acceptance should be given before the lapse of time.
Revocation of offer and acceptance :-
By expressed, declaration of revocation of offer by the offeror. Before it’s acceptance is completed as against the offeror.
By lapse of offer.
By giving counter offer by the offeree.
By non-fulfillment of a condition precedent to acceptance.
By death or insanity of the offeror.
By change at law.
By not accepting the offer, according to prescribed or usual modes
Offer and Acceptance notes pdf download here