Chapter 2 Offer, Acceptance & Revocation Flashcards
What is an offer or purposal ?
A person makes an offer when he shows his willingness to do or not to do something, to obtain consent of other person.
Define “ Acceptance “.
When offeree show his consent to offer, “is called Acceptance”.
What is difference between agreement and contract ?
Agreement:
Promises forming consideration for each other, are called agreements.
Contract:
Agreements enforceable by law are called contracts.
Every Contract is an agreement, but every agreement is not a contract.
List down “essentials of an offer”.
1- Two persons.
2- Intention to create legal relationship.
3- Certain and definite.
4- Offer may be conditional.
5- Invitation to offer is not an offer.
What is the legal rule if offer has some conditions attached to it ?
1- Conditions must be clearly communicated to offeree.
2- Offeree has to accept all conditions without modifications. Otherwise, it’ll become a counter- offer.
Give some examples of “invitation to offer”.
1- An advertisement for auction.
2- Goods shown on departmental stores with price tags.
3- Circulation of information.
4- A tender notice.
When an offer is communicated?
When it comes to knowledge of offeree.
When is an offer revoked?
When it comes to knowledge of offeree.
When is an acceptance revoked?
When it comes to knowledge of offeror.
When is an acceptance communicated?
Acceptance is communicated in two phases:
1- As against offeror:
When it is put into course of transmission by offeree.
2- As against offeree:
When it is received by offeror.
How an offer is revoked ( or lapsed)?
1- Revoked by offeror( before offeree gives his acceptance).
2- Rejected by offeree.
3- Non- fulfilment of conditions.
4- Passing of stipulated or reasonable time.
5- Death or insanity before acceptance.
6- Counter-offer.
7- Subsequent illegality or destruction of subject matter.
● What is effect on offer if:
a) offeree dies before acceptance.
b) offeror dies before acceptance.
a) Offer lapses.
b) Offer does not lapse, until other party (i.e., offeree) is known about death.
● List down essentials of “ acceptance “.
1- Acceptance must be absolute and unconditional.
2- Stipulated or reasonable time.
3- Stipulated or reasonable manner/mode.
4- Acceptance must be given only by the person to whom it is made.
5- Acceptance cannot precede an offer.
6- Rejected offer cannot be accepted unless it is renewed.
7- Performance of condition, or acceptance of consideration.
8- Acceptance must be communicated.
What happens if acceptance is not given in a prescribed manner/mode?
Offeror may accept derived acceptance, or ask offeree to communicate in a prescribed manner/mode.
