Offer and Acceptance

Offer: It is a proposal by one party to another to enter into a legally binding agreement with him. How an offer is made

An offer may be:

Express offer Implied offer Specific offer General offer

What Constitutes an Offer

Show an obvious intention View to obtaining the assent Must be definite Must be communicated

Legal Rules As To Offer

Offer must be such as in law is capable of being accepted and giving rise to legal relationship. Terms of offer must be definite, unambiguous and certain and not loose and vague. An offer may be distinguished from declaration/invitation. Offer must be communicated. Offer must be made with a view to obtaining the assent. Offer should not contain a term the non-compliance of which may be assumed to amount to acceptance.

Tender
A tender is an offer and may be : A definite offer A standing offer Special terms in a contract :Cross offers :-

Acceptance
Defination: Acceptance is the act of assenting by the offeree to an offer. This means when the offeree signifies his assent to the offeror, the offer is said to be accepted.

Legal Rules As To Acceptance

The acceptance of an offer is very important for a contract. The following conditions must be satisfied in order to make acceptance legally effective. It must be absolute and unqualified. It must be communicated to the offeror. It must be according to the prescribed mode. It must be given within a reasonable time. It cannot precede an offer. It must show an intention to fulfill terms of the promise. It must be given by the party/parties to whom the offer is made. It must be given before the offer lapses. It cannot be implied from silence.

Communication of Offer, Acceptance and Revocation

Mode of communication. When is communication complete? Time for revocation of offer and acceptance.

When does an offer come to an end? An offer may come to an end by revocation/lapse ,or rejection. By communication of notice. By lapse of time. By non-fulfillment of a condition by offeree. By death/insanity of the offeror. If a counter offer is made to it. If an offer is not accepted as per prescribed mode. If the law is changed. Rejection of offer Express rejection. Implied rejection.