A simple contract is one made by two or more persons which must have consideration as an important feature of it.

An offer is a proposal or a bid made by one party to another either directly or through an agent. An offeror is the person making the offer or the agent who represents him. For an offer to be genuine it must be made by the offeror.

An offeree is the person accepting the offer. An offer can be oral, implied by conduct or put in writing. Note that a simple contract need not be in writing. An offer must be communicated to the offeree . It must be clear and precise and can only be revoked or withdrawn before acceptance by the offeree.

An offer can be made to a specific person or to the world at large. If Paul places an advertisement in the newspaper promises a reward to the person who finds and returns his dog that he lost. The person who responds to the request would be qualified for the reward.

This is when the offeror invites the offeree to make him an offer which may be either rejected or accepted. This is not a genuine offer because an offer must be made by the offeror.

Goods displayed in a store or a supermarket with a price tag attached. Goods offered for sale by public tender. An advertisement inviting tenders for goods.

In law an acceptance is achieved when the offeree unconditionally agrees to all the terms and conditions of the offer. It must be noted there must be a genuine offer made and not an invitation to treat, otherwise the acceptance is invalid.

An offer must be communicated before it is considered as legal. An acceptance must be unconditional- the offeree must not change any of the conditions of the offer. Must be done in the manner stated.

An acceptance must be unqualified the offeree must measure up to the expectations of the contract and not seek to change it. An acceptance must also be absolute all the terms and conditions must be agreed on totally and the offeree should not desire to change any aspect in his favour. Must be accepted within the stipulated time.

Once the offeree changes the terms of the agreement this is a counter offer and is equal to a rejection of the original offer. An offer made through the post office is effective once the letter is posted. It does not matter if the letter was delayed or lost in the post.

An offer made through the phone, fax machine or any instantaneous means of communication is complete only when received and not transmitted.

Reference Abiraj, BMC. (2006). Principles of business for CXC. 5th ed.

END OF LESSON