Ways In Which The Offer Will Be Extinguished1

8/7/2019 Ways In Which The Offer Will Be Extinguished1

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Flow of Presentation

Long silenced

Express or implied rejection

Expiry of time

Revocation of offer before

acceptance


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Long Silence

Shanat offers to sell his computer toVishal for Rs.30000 on the phone

Vishal tells him that he will think it

over and let him know Vishal gets back after 6 months but

Shanat has already sold thecomputer to another person

Vishal claiming that he has formedan agreement by accepting the offer


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Exploration


5/21

A long silence impliedly means

disinterest

When Vishal did not get back toShanat for a long time, Shanat

assumed that Vishal was not

interested in the offer


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Summary


7/21

A long silence implies rejection of an

offer (Ramsgate Victoria HotelCompany Limited vs. Montefiore)


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Expressed rejection of an Offer

Shanat offers to sell a computer toVishal for Rs.30000

Vishal refuses to buy it

Later he comes back and says, Iaccept your offer

But Shanat has sold the computer toanother person.

Has an agreement been madebetween Shanat and Vishal?


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By saying no to the offer, Vishal brought

the offer to an end

Thereafter, Shanat was freed of any futureobligation arising from the offer

Hyde vs. Wrench


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Implied rejection

Shanat offers to sell a computer toVishal for Rs.30000

Vishal shakes his head, puts hishand in his pocket, takes out hishand and shakes it

Later, Vishal comes back and says,I accept your offer

But, Shanat has sold the computer

to another person

Has an agreement been madebetween Shanat and Vishal?


12/21

Exploration


13/21

The shaking of head and hand has

communicated to Shanat that Vishal

did not have money and is rejecting

the offer So, the rejection has been

communicated in an implied manner


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Summary

An offer can get extinguished

by express or implied

rejection


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Expiry of time

Shanat offers to sell his computer toVishal for Rs.30000 and tell him hecould think over it and let him know

by 6 pm, coming Monday Vishal calls Shanat on Tuesday

evening and says, I accept youroffer

Shanat had sold the computer onTuesday morning to another person

Vishal is demanding the computer


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Exploration

Agreements are voluntarily formed

between two parties

Shanat clearly intends that the offer

is valid only till 6 pm, Monday

So, when Vishal comes back, theoffer is already extinguised


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Summary

An offer can get extinguished by expiry

of the time


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Revocation of an Offer

Sunil offers to sell 10 shares of a

company to Arman, as he needs

money to buy a house

Arman is still considering the offer

Meanwhile, Sunil manages to get an

additional loan for buying the house

He doesnt need to sell the sharesnow


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He calls Arman 2 days after

having made the offer and tells

him that the shares are not for

sale any more

Arman insists that Sunil has to

sell the shares to him.


20/21

Exploration

Rights and obligations arisesonly when an agreement isformed

An agreement comes into beingonly on acceptance of an offer

Till then, neither of the parties

have any obligation to oneanother

Pane vs. Cave


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Documents

Ways In Which The Offer Will Be Extinguished1