O & a 2

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Offer & AcceptanceSec. 3 to 9 of ICA,1872

Offer / Proposal:1.Positive12.Negative2

How an offer is made:Any Act:i.) By words [written,Oral]3,4ii) By conduct5

b)By Omission6

Implied Offer7Specific & General Offer8,9

Essential requirements of a valid offer:Offer must be made with a view to obtain acceptance.Offer must be made with the intention to create legal relations.Terms of offer must be definite,unambiguous & certain or capable of being made certain.The term of offer must not be loose,vague or ambiguous.10,11

Offer must be distinguished from:(a) a mere declaration of intention or (b) an invitation to offer.12,13

The offer must be communicated to offeree.14

The offer must not contain a term the non-compliance of which may be assumed to amount to acceptance.14

A tender is an offer as it is in response to an invitation to offer. (a)Specific15 or definite (b)Standing16

Special terms in offer must be duly brought to the notice of the offeree at the time the offer is made.17

Two identical cross-offers do not make a contract.18

XYXYCross Offer

Termination or Lapse of Offer:The offer lapses after stipulated or reasonable time.19An offer lapses by the death or insanity of the offeror or offeree.An offer terminates when rejected by the offeree.An offer terminates when revoked by the offeror before acceptance.

An offer terminates by not being accepted in the mode prescribed or if no mode is prescribed in some usual & reasonable manner.

A conditional offer terminates when conditions is not accepted by the offeree.20

It terminates by counter offer by the offeree.

AcceptanceAcceptance how made:OffereeAcceptanceAssent to proposal

AssentExpressedImpliedwritingWord of mouthBy performance of someRequired act.1Surrounding circumstancesOr the conduct of the parties.2


Essentials of a valid Acceptance: Acceptance must be Absolute & Unqualified4Acceptance must be communicated to the offeror5( the acceptance of an offer can not implied from the silence of the offeree or his failure to answer)6Acceptance must be according to the mode prescribed7

Agreement to agree in future.8It must be given within the time specified or within reasonable timeIt must be in response to offerIt must be made before the offer lapsesIt must be given by the person to whom the offer is madeCommunication of offer & acceptanceRevocation of offer & acceptance

Comm. Of Offer & Acceptance:Sec.4: The comm. Of a proposal is complete when it comes to the knowledge of the person to whom it is made. E.g.The comm. Of acceptance is complete:1. as against the proposer, when it is put into a course of transmission to him, so as to be out of the power of the acceptor

2. As against the acceptor, when it comes to the knowledge of the proposer (ex.)The comm. Of a revocation(of an offer or an acceptance) is complete:1.as against the person who makes it, when it is put into a course of transmission to the person to whom it is made, so as to be out of the power of the person who makes it.

2.as against the person to whom it is made when it comes to his knowledge.

Revocation of Proposal & Acceptance:Sec 5 provides that a proposal may be revoked at any time before the comm. Of its acceptance is complete as against the proposer, but not afterwards.Also an acceptance may be revoked at any tome before the comm. Of the acceptance is complete as against the acceptor, but not afterwards.