Chapter 3 offer and acceptance

Presentation by Shafiq butt and Muhammad Umair KaramatThe university of Punjab

Chapter #3:OFFER AND ACCEPTANCE

© 2014 M.U.K presents. All rights reserved.

INTRODUCTION

There are three essential elements of a valid contract.Offer and acceptance (sighah: صيغة )Subject Matter (maqud alayh: عليه (معقودContracting parties (aqidan:عاقدين)

In this chapter we discuss about the offer and acceptance.

© 2014 M.U.K presents. All rights reserved. Presentation by Shafiq butt and Muhammad Umair KaramatThe university of Punjab

SUMMARY

In this chapter we discuss three basic things about Form.

1. Form: offer and acceptance.

2. Conditions necessary for Form (sighah).

3. Causes of cancellation of offer.


1# FORM:(OFFER AND ACCEPTANCE)

Form consists of two things:Offer(ايجاب)Acceptance(قبول)

A declaration by one person to create a legal obligation is called offer while the subsequent declaration is called acceptance.

Kinds of Form:(offer and acceptance)1. By words2. By writing3. By gesture or indication4. By conduct


BY WORDS By word:

In shariah there is no particular words to form a contract. Whatever conveys the meanings of offer and acceptance clearly is sufficient to form a valid contract.

Tense: In order to avoid any uncertainty, Islamic law requires that The words of contract must be:1. in past tense (e.g. I have sold this house)2. Or Present tense if it is supported by some

other evidence (e.g. I sell this house) if form a contract refers to future the

contract is invalid.© 2014 M.U.K presents. All rights reserved.

BY WRITING Writing: The majority of the Muslim jurists

allow the contract that is made in writing e.g. you send an offer through email and buyer

accept it. it is a valid contract and condition of same meeting does not apply to it.

Some of the shafi jurists allows it only when the parties are unable to speak.


BY GESTURE OR INDICATION Gesture or indication: means a movement of part of

the body, especially a hand or the head, to express an idea or meaning.

Gesture or indication: The Hanfi and shafi jurists allowed

the formation of contract through gesture only for a person who can not speak or write: e.g. says I sell you this house and B who is dumb person nodes his head. this contract is allowed.

Maliki jurists allow it for any one. according to them any thing that conveys the meanings of offer and acceptance is sufficient to form a contract.


BY CONDUCT By conduct: A contract is also made by the conduct of

the parties e.g. says to B “I sell you this book for Rs.10” B places Rs.10 on the counter and picks up the book.

Contract by conduct is allowed with the following conditions:1. Conduct must be from both sides.2. There must be an intention.3. The item must be of small value.

© 2014 M.U.K presents. All rights reserved. Presentation by Shafiq butt and Muhammad Umair KaramatThe university of Punjab

2# CONDITIONS NECESSARY FOR FORM

Muslim jurists imposed some conditions for offer and acceptance, without fulfillment of that condition contract cannot be concluded.

Two necessary conditions of form:

1. Acceptance must match with offer in all its details: i.e. price , object , Time period

2. offer and acceptance must be in the same meeting. The only exception is option of stipulation ( الشرط .(خيار


CONDITIONS NECESSARY FOR FORMEXAMPLES

Acceptance must match with offer In all its detail.

Examples:

1. A says to B “I to sell my land to you for Rs 100,000”. B says “I accept it for Rs. 80,000. The contract is not valid.

2. C says to D: “ I offer 50 bags of sugar to you”. D replies: I accept 25 bags” it is not a valid contract.

3. Ali says to Aslam:“I sell you this car for Rs. 50000 for cash". Aslam replies:“I accept it but I will pay after a month. it is not a valid contract.

© 2014 M.U.K presents. All rights reserved. Presentation by Shafiq butt and Muhammad Umair Karamat

The university of Punjab

CONDITIONS NECESSARY FOR FORM:HADEETH

Issuance of offer and acceptance in the same session:

The base of this view point is the saying of Holy Prophet (PBUH). “The contracting parties have the right of option until they separate”.

According to Hanfi jurists it means: separation from topic of discussion.

According to Hanbli and Shafi it means: physically separation from meeting.

Khyiar-al-Majlas( المجلس (خيار


CONDITIONS NECESSARY FOR FORM: OPTION OF STIPULATION

In this option the buyer or seller or both can reserve the right to think for up to 3 days. In this time period he can cancel the contract.

The only exception from the rule of Issuance of offer and acceptance in the same meeting is:

Option of Stipulation: ( الشرط (خيار


3#CAUSES OF CANCELLATION OF OFFER

1. Withdrawal of offer by the maker.

2. Death of party or loss of capacity.

3. Refusal of the offer by other party.

4. Termination of the Majlis.

5. Destruction of subject matter.© 2014 M.U.K presents. All rights reserved. Presentation by Shafiq butt and Muhammad Umair Karamat

The university of Punjab

Economy & Finance

Chapter 3 offer and acceptance