Offer , Acceptance and Revocation Flashcards
Offer
A person makes an offer when he shows his willingness to do or not to do something, to obtain the consent of other person.
Acceptance
When the offeree shows his consent to offer, it is called acceptance.
Agreement
Promises forming consideration for each other , are called agreement.
Promise + consideration = Agreement
Contract
Contract is an agreement which is enforceable by law.
Agreement + Enforceability by law = Contract
Every contract is an agreement, but every agreement is not contract.
Enforceability by law
A contract becomes enforceable by law when it creates legal obligations for parties.
Following are agreements which cannot be enforced by law:
- illegal Agreement
- Impossible Agreement
- Social, Domestic or Religious Agreement (unless agreed by parties)
Specific offer
An offer is specific when it is made to a definite person (or persons). Such an offer can be accepted only by the person (or persons) to whom it is made.
General offer
An offer is general when it is made to the world at large or public in general. Any person can accept such offer by acting on conditions of the offer.
Counter offer
An offer made by the other party in response to a previous offer. Counter offer cancels original offer.
Essentials of offer
1- Two person
2- Intension to create legal relationship
3- Certain and definite
4- Offer must be communicated
5- Conditional offer
6- An invitation to offer is not an offer
Lapse/Revocation of an offer/proposal
1- Revocation by offeror
2- Rejection by offeree
3- Non-fulfilment of condition
4- Passing of stipulated or reasonable time
5- Death or insanity of parties before acceptance
6- Counter offer
7- Subsequent illegality or destruction of subject matter
Essentials of an Acceptance
1- Acceptance must be absolute and unconditional
2- With stipulated or reasonable time
3- With 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 renewed
7- Negative confirmation
8- Acceptance of consideration, or performance of a condition
9- Acceptance must be communicated
- When it is put in the course of transmission, and is out of power of acceptor
- When it comes to the knowledge of the offeror
10- Revocation of acceptance
Invitation to offer
1- An advertisement for sale of goods by auction
2- Display of goods with price tags
3- Circulation of information
4- A notice that goods will be sold/purchased by tender
