Socio

Land Acquisition Act, 1894

Seeds Act, 1966: Seeds Act, 1966 and Seeds Rules, 1968 provide certification
and minimum quality standards of notified kinds/varieties.

Food Safety and Standards Act, 2006

National Biodiversity Act, 2002
Rural development is a comprehensive socio-economic process undertaken by
the government for purpose of improving the economic and social conditions of
the people living in rural areas
Mgnrega
Biggest job oriented scheme in the world
Passed in august 2005
100 days of unskilled labpor
Mainly in off season
Job of infrastructure development
60 rupees per day minimum
Critisicm
Improper management
Unskilled staff such as programme manager ,technician
Vote abnk
Pradhan mantra gram sadak yojana 2000
Connected all unconnected villages with all wester roads
Disadv
Only 8 % reduction
Bad quality
Less funds
In bigger population areas
 The National Rural Health Mission (2005-12)
INTRODUCTION

The National Rural Health Mission (2005-12) seeks to provide effective

healthcare to rural population throughout the country with special focus on 18
states, which have weak public health indicators and/or weak infrastructure.
The Mission is an articulation of the commitment of the Government to raise
public spending on Health from 0.9% of GDP to 2-3% of GDP.
Objectives
1to make ayaush strong
Reduce material health
Prevent diseases
Provide basic heatlh care services
Pradhan mantra fasal bima yojana
Insuarance from natural disaster
Modernise
tort
An assault is a threat or attempt to do a corporeal hurt to another, coupled with
an apparent physical ability and intention to do the act. Actual contact isn’t
necessary in an assault
Elements of Assault:

Three elements must be established in order to establish tortious assault: first,

the plaintiff apprehended immediate physical contact, second, the plaintiff had
reasonable apprehension (the requisite state of mind) and third, the defendant's
act of interference was intentional (the defendant intended the resulting
apprehension).
Cullison v. Medley1

Facts: Plaintiff Cullison met 16-year-old Sandy Medley in a grocery store

parking lot, invited her to have a soda with him and to come to his home to talk

1
570 N.E.2d 27 (Ind. 1991).
further. A few hours later he was awoken by a knock at his door. He was
confronted by Sandy Medley, her father Ernest, her brother, brother-in-law, and
mother. Ernest had a revolver in a holster strapped to his thigh. Sandy called
him a “pervert” and her mother berated him. Ernest kept grabbing and shaking
the gun while still in the holster and threatening to “jump astraddle” of him if he
did not leave Sandy alone. Although no one ever touched Cullison, he feared he
was about to be shot because Ernest kept grabbing the gun as if to draw it from
the holster while threatening him. As a result of this incident, Cullison sought
psychological help to deal with nervousness, depression, sleeplessness, inability
to concentrate, and impotency. He sued the Medleys for assault, among other
torts. The trial court granted summary judgment in favor of defendants on all
claims, the appeals court affirmed, and the Indiana Supreme Court reversed on
the assault count.
Issue: Whether threatening language coupled with a holstered pistol rises to the
level of assault.
Held: Yes, it was an assault. Assault occurs when one intentionally creates the
reasonable apprehension of imminent harmful or offensive contact in
another. It is a touching of the mind, if not the body, and as such, the damages
which are recoverable are for mental trauma and distress. It is assault to shake a
fist under another’s nose, to aim or strike at him with a weapon or to hold it in a
threatening position, or to surround him with a display of force. Additionally,
the apprehension must be one that would be aroused in the mind of a reasonable
person. In this case, a jury could reasonably conclude that the Medleys
intended to frighten Cullison by surrounding him in his trailer and verbally
threatening him with bodily harm while one of them was armed with a holstered
revolver. Accordingly, the Indiana Supreme Court reversed the summary
judgment on the assault count.
Bavisetti Venkat Surya Rao v. Nandipati Muthayya2: Plaintiff owed a
certain amount to the defendant which he was unable to pay. The defendant, in
order to collect the amount thought to visit plaintiff’s house and sell some
movables to recoup the amount. The defendant called a goldsmith to evaluate
the value of gold in the house of plaintiff, but the person standing at the time of
such evaluation near the house borrowed the amount from another to give it to
the defendant, and after the defendant had taken the amount, the plaintiff sued
him for assault.

It was held that since the defendants, after the arrival of the Goldsmith said
nothing and did nothing and the threat of use of force by the goldsmith to the
plaintiff was too remote a possibility to have put the plaintiff in fear of
immediate or instant violence, there was no assault.

Battery is the intentional and direct application of any physical force to the
person of another. It is the actual striking of another person, or touching him in
a rude, angry, revengeful, or insolent manner.
Garratt v. Dailey3

Facts: Five year old Brian Dailey (D) pulled a chair out from under Ruth Garratt
just as she was about to sit causing her to fall and break her hip. Garratt brought
suit for personal injuries and alleged that Dailey had acted deliberately. The trial
court entered judgment for Dailey and found that he had not intended to injure
Garratt. The court nevertheless made a finding of $11,000 in damages in case
the judgment was overturned on appeal. Dailey appealed.

Issues:

2
BVS Rao vs Nandipati Muthayya AIR 1964 AP 382
3
46 Wash. 2d 197, 279 P.2d 1091 (Wash. 1955).
1. In regards to the intentional tort of battery, is the element of intent satisfied if
the defendant knows with a substantial certainty that his act will result in a
harmful or offensive contact?
2. Can a five year old child be liable for an intentional tort?
Holding and Rule:

1. Yes. In regards to the intentional tort of battery, the element of intent is

satisfied if the defendant knows with a substantial certainty that his act will
result in a harmful or offensive contact.
2. Yes. A five year old child can be liable for an intentional tort.
A minor is liable just as any other person when he has committed an intentional
tort with force.

Elements of the Tort of Battery: Under the Restatement of Torts an actor who
commits a direct or indirect act which is the legal cause of a harmful contact
with another is liable if: 1) the act is done with the intention of bringing about a
harmful or offensive contact or an apprehension thereof to the other or a third
person, and 2) the contact is not consented to by the other or the other’s consent
thereto is procured by fraud or duress, and 3) the contact is not otherwise
privileged.

Talmage v. Smith4

Facts: Talmage and several other children were playing on the roofs of sheds on
Smith’s property. Smith ordered the children to get down and threw a stick at
one of the boys. The stick missed its intended target and struck Talmage in the
eye. Talmage lost all sight in the eye and sued for battery to recover for personal
injuries.

4
101 Mich. 370, 45 Am. St. Rep. 414, 59 N.W. 656 (Mich. 1894).
Evidence was offered showing that Smith threw the stick intending to frighten
(i.e. assault) but not hit a different boy. The trial court entered judgment for
Talmage and Smith appealed on the grounds that he did not have the intent to
hit Talmage and was therefore not liable for battery.

Issue: If an actor intends to inflict an intentional tort upon one party and
accidentally harms a second party, can the actor be held liable to the second
party for battery?

Holding and Rule: Yes. If an actor intends to inflict an intentional tort upon one
party and accidentally harms a second party, the actor can be held liable to the
second party for battery under the doctrine of transferred intent.
If an actor intends an act against a party and that act impacts upon another the
actor is liable for the injuries suffered. The fact that the injury resulted to a party
other than was intended does not relieve the defendant from responsibility.
Smith will not be relieved of liability because he intended to injure someone
else.

Disposition: Affirmed.

Transferred Intent: The transferred intent torts under common law are: assault,
battery, false imprisonment, trespass to land, and trespass to chattels. If an actor
has the intent to
Pratap Daji vs. B.B. & C.I. Ry5.: Here the plaintiff entered in a carriage of
defendant’s railway but had forgotten to purchase a ticket for his travel. On one
of the stops of the carriage, he tried to purchase the ticket but didn’t get any. At
another place, he was asked for the ticket which he didn’t have and therefore
was asked to get out of the carriage. He refused to do so. On his refusal, the
defendant used force to get him out of the carriage. He bought an action against

5
PratapDaji vs BB&CC railway 1875 1 Bom 52
the defendant for use of force. It was held that the defendant was not liable, as
he used force against the person who was not having a ticket and therefore was
a trespasser, and therefore he couldn’t be held liable.

eco
recession negative growth for two quarters
longterm recesio is depression

causes
wall street catsh of 1929 called balck Tuesday
US Federal Reserve that contracted the money supply, and Britain's decision to return to the Gold
Standard at pre-World War I parities

The consensus viewpoint is that there was a large-scale loss of confidence that led to a
sudden reduction in consumption and investment spending. Once panic and deflation set in,
many people believed they could make more money by keeping clear of the markets as prices
dropped lower and a given amount of money bought ever more goods, exacerbating the drop
in demand.

Second, there are the monetarists, who believe that the Great Depression started as an ordinary
recession, but that significant policy mistakes by monetary authorities (especially the Federal
Reserve), caused a shrinking of the money supply which greatly exacerbated the economic situation,
causing a recession to descend into the Great Depression\

Lot of investment in industries which were not needed

Recovery
Pushing in money
Changing gold standard
Devaluation of currency
Political turmoil in Europe
Effects
50 percent banks failed
Lost confidence in capitalism
Avg income dropped
25 percent unemployment
Stock market lost 90 per value

contract
Offer(i.e. Proposal) [section 2(a)]:-When one person signifies to another his willingness to
do or to abstain from doing anything, with a view to obtaining the assent of that other person
either to such act or abstinence, he is said to make a proposal.
To form an agreement, there must be at least two elements – one offer and the other
acceptance. Thus offer is the foundation of any agreement.
Essential elements of an offer:-
(1) There must be two parties.
(2) The offer must be communicated to the offeree.
(3) The offer must show the willingness of offeror. Mere telling the plan is not offer.
(4) The offer must be made with a view to obtaining the assent of the offeree.
(5) A statement made jokingly does not amount to an offer.
(6) An offer may involve a positive act or abstinence by the offeree.
(7) Mere expression of willingness does not constitute an offer.
Example: Carlill v Carbolic Smoke Ball Company [1893]6

Facts:

In this case the plaintiff bought a medical preparation called ‘The Carbolic Smoke Ball’ on

the basis that the defendants advertised that they would pay ￡100 to any person who

contracted influenza after using the smoke ball in the prescribed manner and for a specified

period. Further, the defendants stated that ‘to show their sincerity’ they had deposited￡

1,000 with the Alliance Bank. The plaintiff bought one of the smoke balls and used it in the

6
Simpson, A. W. B. (1985). "Quackery and Contract Law: The Case of the Carbolic Smoke Ball". Journal of Legal
Studies. 14 (2): 345–389. doi:10.1086/467776. JSTOR 724433.
manner prescribed and promptly caught influenza! She sued for the ￡100. The defendants

contended that there was no agreement between them and used considerable ingenuity in
promoting this contention. One of the defences used was that it was not possible to make
an offer to the whole world since this would enable the whole world to accept the offer,
which was clearly beyond the realms of commercial reality.

Held:

The Court of Appeal had no difficulty in rejecting this defence. Bowen LJ stated the position
very clearly as follows:

It was also said that the contract is made with the whole world – that is,
with everybody and you cannot contract with everybody. It is not a
contract made with all the world. There is the fallacy of the argument. It
is an offer made to all the world; and why should not an offer be made
to all the world which is to ripen into a contract with anybody who
comes forward and performs the condition? . . . Although the offer is
made to the world, the contract is made with that limited portion of the
public who come forward and perform the condition on the faith of the
advertisement.

The defendants also contended that the plaintiff had not accepted their offer and therefore
there was no consensus ad idem and thus no agreement. This defence, which was rejected,
exposes the fact that offers may arise in two forms, either bilateral or unilateral. A bilateral
offer arises where one party promises to do something in return for a promise made by the
offeree. Both parties are agreeing to do something in return for some reciprocal promise from
the other. An example of such an offer would be if A promises to sell their car in return for B

promising to pay ￡5,000. The vast majority of offers are of this type
 KINDS OF OFFER
Express Implied Specific General Cross Counter Standing
offer offer offer offer offer offer Open and
Continuous
offer

I. Express offer -When the offeror expressly communication the offer the offer is said to be
an express offer the express communication of the offer may be made by Spoken word
orWritten word

II. Implied offer –when the offer is not communicate expressly. An offer may be implied
from:-
The conduct of the parties or the circumstances of the case

III. Specific:-It means an offer made to

(a) a particular person or
(b) a group of person: It can be accepted only by that person to whom it is made
communication of acceptance is necessary in case of specific offer.

IV. General offer: -It means on offer which is made to the public in general.
• General offer can be accepted by anyone.
• If offeree fulfills the term and condition which is given in offer then offer is
accepted.
• Communication of acceptance is not necessary is case of general offer
Example
Company advertised that a reward of Rs.100 would be given to any person who would suffer
from influenza after using the medicine (Smoke balls) made by the company according to the
printed directions. One lady, Mrs, Carlill, purchased and used the medicine according to the
printed
Directions of the company but suffered from influenza, She filed a suit to recover the reward
of Rs.100. The court held that there was a contract as she had accepted a general offer by
using the medicine in the prescribed manner and as such as entitled to recover the reward
from the company.
Carlill v Carbilic Smoke Ball Co. 1893

V. Cross offer:- When two parties exchange identical offers in ignorance at the time of each
other’s offer the offer’s are called cross offer.Two cross offer does not conclude a contract.
Two offer are said to be cross offer if
1. They are made by the same parties to one another
2. Each offer made in ignorance of the offer made by the
3. The terms and conditions contained in both the offers’ are same.7
Example : A offers by a letter to sell 100 tons of steel at Rs.1,000 per ton. On the same day,
B also writes to A offering to buy 100 tons of steel at Rs.1,000 per ton. When does a contract
come into existence: -A contract comes into existence when any of the parties, accept the
cross offer made by the other party.

VI Counter offer :-when the offeree give qualified acceptance of the offer subject to
modified and variations in the terms of original offer. Counter offer amounts to rejection of
the original offer.
Legal effect of counter offer:-
(1) Rejection of original offer
(2) The original offer is lapsed
(3) A counter offer results a new offer.
In other words an offer made by the offeree in return of the original offer is called as a
counter offer.
Example:
A offered to sell his pen to B for Rs.1,000. B replied, “ I am ready to pay Rs.950.” On A’s
refusal to sell at this price, B agreed to pay Rs.1,000. Held, there was not contract as the
acceptance to buy it for Rs.950 was a counter offer, i.e. rejection of the offer of A.
Subsequent acceptance to pay Rs.1,000 is a fresh offer from B to which A was not bound to
give his acceptance

VII Standing, open and continuous offer:-An offer is allowed to remain open for
acceptance over a period of timeis known as standing, open orcontinually offer. Tender for
supply of goods is a kind of standing offer.

7
Business and labour law –offer and acceptance by Muhammad Naveed and Imran khan
Example:
When we ask the newspaper vendor to supply the newspaper daily. In such case, we do not
repeat our offer daily and the newspaper vendor supplies the newspaper to us daily. The
offers of such types are called Standing Offer.8
Acceptance 2(b):-When the person to whom the proposal is made, signifies his assent there
to , the proposal is said to be accepted. On the acceptance of the proposal, the proposer is
called the promisor/offeror and the acceptor is called the promise/offeree.9
Offer(i.e. Proposal) [section 2(a)]:-When one person signifies to another his willingness to
do or to abstain from doing anything, with a view to obtaining the assent of that other person
either to such act or abstinence, he is said to make a proposal.
To form an agreement, there must be at least two elements – one offer and the other
acceptance. Thus offer is the foundation of any agreement. 10

“When one person signifies to another his willingness –

• to do or to abstain from doing anything,
• with a view to obtaining the assent of that other to such act or abstinence, he is said to make
a proposal.”

The person who makes an offer is called “Offeror” or “Promisor” and the person to whom the
offer is made is called the Offeree” or “Promisee”.
Example
Mr. A says to Mr. B, “Will you purchase my car for Rs.1,00,000?” In this case, Mr. A is
making an offer to Mr. B. Here A is the offeror and B is the offeree.

HOW AN OFFER IS MADE?

An offer can be made by (a) any act or (b) omission of the party proposing by which he
intends to communicate such proposal or which has the effect of communicating it to the
other (Section 3).11 An offer can be made by an act in the following ways:

8
The Principles of Law of Contract Paperback 2018
by R C Srivastava (Author), Ashutosh Pathak (Author)page 24-28

9
THE INDIAN CONTRACT ACT, 1872 ACT NO. 9 OF 18721
10
THE INDIAN CONTRACT ACT, 1872 ACT NO. 9 OF 1872,interpretation clause[a]
11
THE INDIAN CONTRACT ACT, 1872 section 3
(a) By words (whether written or oral). The written offer can be made by letters, telegrams,
telex messages, advertisements, etc. The oral offer can be made either in person or over
telephone.
(b) By conduct. The offer may be made by positive acts or signs so that the person acting or
making signs means to say or convey. However silence of a party can in no case amount to
offer by conduct. An offer can also be made by a party by omission (to do something). This
includes such conduct or forbearance on one’s part that the other person takes it as his
willingness or assent.
An offer implied from the conduct of the parties or from the circumstances of the case is
known as implied offer.12
Examples
(1) A proposes, by letter, to sell a house to Bat a certain price. This is an offer by an act by
written words (i.e., letter). This is also an express offer.
(2) A proposes, over telephone, to sell a house to Bat a certain price. This is an offer by act
(by oral words). This is an express offer.
(3) A owns a motor boat for taking people from Bombay to Goa. The boat is in the waters at
the Gateway of India. This is an offer by conduct to take passengers from Bombay to Goa.
He need not speak or call the passengers. The very fact that his motor boat is in the waters
near Gateway of India signifies his willingness to do an act with a view to obtaining the
assent of the other. This is an example of an implied offer.

Specific and General Offer

An offer can be made either:
1. To a definite person or a group of persons, or
2. To the public at large.

Essential elements of an offer:-

(1) There must be two parties.
(2) The offer must be communicated to the offeree.
(3) The offer must show the willingness of offeror. Mere telling the plan is not offer.

12
THE INDIAN CONTRACT ACT,1872 Paperback – 2015 by Narendra kumar
(4) The offer must be made with a view to obtaining the assent of the offeree.
(5) A statement made jokingly does not amount to an offer.
(6) An offer may involve a positive act or abstinence by the offeree.
(7) Mere expression of willingness does not constitute an offer.
A tells B’ that be desires to marry by the end of 2008, if does not constitute an offer
of marriage by A’ to B’ A further adds will you marry me. Then it become offer.13

Legal Rules as to valid offer:-

Offer must be communicated to the offeree: The offer is completed only when it has been
communicated to the offeree. Until the offer is communicated, it cannot be accepted. Thus, an
offer accepted without its knowledge, does not confer any legal rights on the acceptor.14
Example: LALMAN SHUKLA (VS) GAURI DATT. (1913)
Facts: ‘S’ sent his servant, ‘L’ to trace his missing nephew. He then announced that anybody
who finds the nephew would be entitled to a certain reward. ‘L’ traced the boy in ignorance
of his announcement. Subsequently, when he came to know of his reward, he claimed it.
Judgment: He was not entitled for the reward.15

2. The offer must be certain definite and not vague unambiguous and certain.
Example:
A offered to sell to B. ‘a hundred tons of oil’. The offer is uncertain as there is nothing to
show what kind of oil is intended to be sold.

3. The offer must be capable of creating legal relation. A social invitation is not create
legal relation. A social invitation, even if it is accepted does not create legal relationship
because it is not so intended to create legal relationship. Therefore, an offer must be such as
would result in a valid contract when it is accepted.
Example:
A invited B to a dinner and B accepted the invitation. It is a mere social invitation. And A
will not be liable if he fails to provide dinner to B.

13
Pollock & Mulla - The Indian Contract Act, 1872 page 110-112

14
THE INDIAN CONTRACT ACT, 1872 SECTION 4
15
Indiancaselaw.com/lalman Shukla vs gauri dutt
4. Offer may be express and implied
The offer may be express or implied; An offer may be express as well as implied. An offer
which is expressed by words, written or spoken, is called an express offer. The offer which is
expressed by conduct, is called an implied offer [Section 9].
5. Communication of complete offer
Example:
A offered to sell his pen to B for Rs.1,000. B replied, “I am ready to pay Rs.950”. On A’s
refusal to sell at this price, B agreed to pay Rs.1,000. held, there was not contract at the
acceptance to buy it for Rs.950 was a counter offer, i.e. rejection of the offer of A.
Subsequent acceptance to pay Rs.1,000 is a fresh offer from B to which A was not bound go
give his acceptance.
6. Counter offer –A counter offer amounts to rejection of the original offer
7. Cross offer do not conclude a contract
8. An offer must not thrust the burden of acceptance on the offeree.
Example:
A made a contract with B and promised that if he was satisfied as a customer he would
favorably consider his case for the renewal of the contract. The promise is too vague to create
a legal relationship.
The acceptance cannot be presumed from silence.
Acceptance is valid only if it is communicated to the offeror.
9. Offer must be distinguished from invitation to offer.
Example:
Menu card of restaurant is an invitation to put an offer.
Example ;
Price – tags attached with the goods displayed in any showroom or supermarket is also an
invitation to proposal. If the salesman or the cashier does not accept the price, the or the
cashier does not accept the price, the interested buyer cannot compel him to sell, if he wants
to buy it, he must make a proposal. 16
Example:
Job or tender advertisement inviting applications for a job or inviting tenders is an invitation
to an offer.

16
Sanjiva Rows : The Indian Contract Act, 1872 and Tenders with Latest Case laws, 13th Updated
Example: An advertisement for auction sale is merely an invitation to make an offer and not
an offer for sale. Therefore, an advertisement of an auction can be withdrawn without any
notice. The persons going to the auction cannot claim for loss of time and expenses if the
advertisement for auction is withdrawn.

10. Offeror should have an intention to obtain the consent of the offeree. A offer to do
(or) not to do something must be made with a view to obtaining the assent of the other party
addressed and it should not made merely with a view to disclosing the intention of making an
offer.

11. Offer may be specific (or) general:An offer is said to be specific when it is made to a
definite
person, such an offer is accepted only by the person to whom it is made. On the other hand
general offer is one which is made to a public at large and maybe accepted by anyone who
fulfills the requisite conditions.
Example: Carlill v Carbolic Smoke Ball Company [1893]17

Facts:

In this case the plaintiff bought a medical preparation called ‘The Carbolic Smoke Ball’ on

the basis that the defendants advertised that they would pay ￡100 to any person who

contracted influenza after using the smoke ball in the prescribed manner and for a specified

period. Further, the defendants stated that ‘to show their sincerity’ they had deposited￡

1,000 with the Alliance Bank. The plaintiff bought one of the smoke balls and used it in the

manner prescribed and promptly caught influenza! She sued for the ￡100. The defendants

contended that there was no agreement between them and used considerable ingenuity in
promoting this contention. One of the defences used was that it was not possible to make
an offer to the whole world since this would enable the whole world to accept the offer,

17
Simpson, A. W. B. (1985). "Quackery and Contract Law: The Case of the Carbolic Smoke Ball". Journal of
Legal Studies. 14 (2): 345–389. doi:10.1086/467776. JSTOR 724433.
which was clearly beyond the realms of commercial reality.

Held:

The Court of Appeal had no difficulty in rejecting this defence. Bowen LJ stated the position
very clearly as follows:

It was also said that the contract is made with the whole world – that is,
with everybody and you cannot contract with everybody. It is not a
contract made with all the world. There is the fallacy of the argument. It
is an offer made to all the world; and why should not an offer be made
to all the world which is to ripen into a contract with anybody who
comes forward and performs the condition? . . . Although the offer is
made to the world, the contract is made with that limited portion of the
public who come forward and perform the condition on the faith of the
advertisement.

The defendants also contended that the plaintiff had not accepted their offer and therefore
there was no consensus ad idem and thus no agreement. This defence, which was rejected,
exposes the fact that offers may arise in two forms, either bilateral or unilateral. A bilateral
offer arises where one party promises to do something in return for a promise made by the
offeree. Both parties are agreeing to do something in return for some reciprocal promise from
the other. An example of such an offer would be if A promises to sell their car in return for B

promising to pay ￡5,000. The vast majority of offers are of this type

KINDS OF OFFER
Express Implied Specific General Cross Counter Standing
offer offer offer offer offer offer Open and
Continuous
offer
I. Express offer -When the offeror expressly communication the offer the offer is said to be
an express offer the express communication of the offer may be made by Spoken word
orWritten word

II. Implied offer –when the offer is not communicate expressly. An offer may be implied
from:-
The conduct of the parties or the circumstances of the case

III. Specific:-It means an offer made to

(a) a particular person or
(b) a group of person: It can be accepted only by that person to whom it is made
communication of acceptance is necessary in case of specific offer.

IV. General offer: -It means on offer which is made to the public in general.
• General offer can be accepted by anyone.
• If offeree fulfills the term and condition which is given in offer then offer is
accepted.
• Communication of acceptance is not necessary is case of general offer
Example
Company advertised that a reward of Rs.100 would be given to any person who would suffer
from influenza after using the medicine (Smoke balls) made by the company according to the
printed directions. One lady, Mrs, Carlill, purchased and used the medicine according to the
printed
Directions of the company but suffered from influenza, She filed a suit to recover the reward
of Rs.100. The court held that there was a contract as she had accepted a general offer by
using the medicine in the prescribed manner and as such as entitled to recover the reward
from the company.
Carlill v Carbilic Smoke Ball Co. 1893

V. Cross offer:- When two parties exchange identical offers in ignorance at the time of each
other’s offer the offer’s are called cross offer.Two cross offer does not conclude a contract.
Two offer are said to be cross offer if
1. They are made by the same parties to one another
2. Each offer made in ignorance of the offer made by the
3. The terms and conditions contained in both the offers’ are same.18
Example : A offers by a letter to sell 100 tons of steel at Rs.1,000 per ton. On the same day,
B also writes to A offering to buy 100 tons of steel at Rs.1,000 per ton. When does a contract
come into existence: -A contract comes into existence when any of the parties, accept the
cross offer made by the other party.

VI Counter offer :-when the offeree give qualified acceptance of the offer subject to
modified and variations in the terms of original offer. Counter offer amounts to rejection of
the original offer.
Legal effect of counter offer:-
(1) Rejection of original offer
(2) The original offer is lapsed
(3) A counter offer results a new offer.
In other words an offer made by the offeree in return of the original offer is called as a
counter offer.
Example:
A offered to sell his pen to B for Rs.1,000. B replied, “ I am ready to pay Rs.950.” On A’s
refusal to sell at this price, B agreed to pay Rs.1,000. Held, there was not contract as the
acceptance to buy it for Rs.950 was a counter offer, i.e. rejection of the offer of A.
Subsequent acceptance to pay Rs.1,000 is a fresh offer from B to which A was not bound to
give his acceptance

VII Standing, open and continuous offer:-An offer is allowed to remain open for
acceptance over a period of timeis known as standing, open orcontinually offer. Tender for
supply of goods is a kind of standing offer.
Example:
When we ask the newspaper vendor to supply the newspaper daily. In such case, we do not
repeat our offer daily and the newspaper vendor supplies the newspaper to us daily. The
offers of such types are called Standing Offer.19

18
Business and labour law –offer and acceptance by Muhammad Naveed and Imran khan
19
The Principles of Law of Contract Paperback 2018
by R C Srivastava (Author), Ashutosh Pathak (Author)page 24-28
 LAPSE OF AN OFFER

An offer should be accepted before it lapses (i.e. comes to an end). Section 16, of the Indian
contract act, 1872 deals with various modes of revocation of offer. According to it, an offer is
revoked/lapses (or) comes to an end underfollowing circumstances. An offer may come to an
end in any of the following ways stated in Section 6 of the Indian Contract Act:

1. By communication of notice of revocation: An offer may come to an end by

communication of notice of revocation by the offeror. It may be noted that an offer can
be revoked only before its acceptance is complete for the offeror. In other words, an
offeror can revoke his offer at any time before he becomes before bound by it. Thus, the
communication of revocation of offer should reach the offeree before the acceptance is
communicated. 20
Example: HARRIS (VS) NIKERSON (1873).21
Facts

An auctioneer advertised that certain goods would be sold at a certain location on a certain
date. The plaintiff went to the sale but all the lots he was interested in had been withdrawn.
He sued the auctioneer for his loss of time and expenses.

Held:

It was held that the claim must fail as the advertisement of the auction was merely a
declaration of intent to hold a sale and did not amount to an offer capable of being
accepted and thus forming the basis of a binding contract, that is, that the advertisement
merely amounted to an invitation to treat.

20
communication of revocation by Harris Lewis JSTOR/CONTRACTS
21
LawTeacher. November 2013. Harris v Nickerson - Summary. [online]. Available from:
https://www.lawteacher.net/cases/harris-v-nickerson.php?vref=1 [Accessed 24 November 2018].
2. By lapse of time; Where time is fixed for the acceptance of the offer, and it is not
accepted within the fixed time, the offer comes to an end automatically on the expiry of fixed
time. Where no time for acceptance is prescribed, the offer has to be accepted within
reasonable time. The offer lapses if It is not accepted within that time. The term‘reasonable
time’ will depend upon the facts and circumstances of each case.
Example: Ramsgate victoria Hotel Company (vs) Monteflore (1886)22
Facts :On June 8th ‘M’ offered to take shares in ‘R’ Company. He received a letter of
acceptance on November 23 rd. . He refused to take shares.
Judgment:‘M’ was entitled to refuse his offer has lapsed as the reasonable period which it
could be accepted and elapsed.

3. By failure to accept condition precedent: Where, the offer requires that some condition
must, be fulfilled before the acceptance of the offer, the offer lapses, if it is accepted without
fulfilling the condition.

4. By the death or insanity of the offeror: Where, the offeror dies or becomes, insane, the
offer comes to an end if the fact of his death or insanity comes to the knowledge of the
acceptor before he makes his acceptance. But if the offer is accepted in ignorance of the fact
of death or insanity of the offeror, the acceptance is valid. This will result in a valid contract,
and legal representatives of the deceased offeror shall be bound by the contract.
On the death of offeree before acceptance, the offer also comes to an end by operation of law.
23

5. By counter – offer by the offeree: Where, a counter – offer is made by the offeree, and
then the original offer automatically comes to an end, as the counter – offer amounts to
rejections of the original offer.
Example: Hyde (vs) Wrench (1840)24
Facts:

22
LawTeacher. November 2013. Ramsgate Victoria Hotel v Montefiore - 1866. [online]. Available from:
https://www.lawteacher.net/cases/ramsgate-hotel-v-montefiore.php?vref=1 [Accessed 24 November 2018].
23
Understanding laws –contracts by Garima Tiwari[Jabalpur]page 69-70
24
Beale, Hugh; Arthur Hartkamp; Hein Kotz; Denis Tallon (2002). Cases, Materials and Texts on Contract Law.
Hart Publishing
The defendant offered to sell his farm for ￡1,000. The plaintiff at first made a counter

offer of ￡950, but two days later agreed to pay ￡1,000 and attempted to accept the

original offer. The defendant refused to complete the sale and the plaintiff brought an
action against him for a decree of specific performance.

Held:

It was held that no contract existed since by his letter offering ￡950 the plaintiff had made

a counter-offer, the effect of which was to reject and destroy the original offer, so that the
latter was therefore not available for him to accept two days later.

6. By not accepting the offer, according to the prescribed or usual mode: Where some
manner of acceptance is prescribed in the offer, the offeror can revoke the offer if it is not
accepted according to the prescribed manner.

7. By rejection of offer by the offeree: Where, the offeree rejects the offer, the offer comes
to an end. Once the offeree rejects the offer, he cannot revive the offer by subsequently
attempting to accept it.The rejection of offer may be express or implied.

8. By change in law: Sometimes, there is a changein law which makes the offer illegal or
incapable of performance. In such cases also, the offer comes to an end.

COMMUNICATION OF OFFER AND REVOCATION OF OFFER:

An offer, its acceptance
and their revocation (withdrawal) to be complete when it must be communicated to the
offeree. The
following are the rules regarding communication of offer and revocation of offer:
(a) Communication of offer:
i) The communication of an offer is complete when it comes to the knowledge of the person
to whom it is made.
ii) An offer may be communicated either by words spoken (or) written (or) it may be inferred
from the conduct of the parties.
iii) When an offer/proposal is made by post, its communication will be complete when the
letter containing the proposal reaches the person to whom it is made.
(b) Revocation of offer:A proposal/offer may be revoked at anytime before the
communication of its
acceptance is complete as against the proposer, but not afterwards.25

ACCEPTANCE

25
Scott robet E –Contract theory and limtations of the contract law
Acceptance 2(b):-When the person to whom the proposal is made, signifies his assent there
to , the proposal is said to be accepted. On the acceptance of the proposal, the proposer is
called the promisor/offeror and the acceptor is called the promise/offeree.26
Examples
A trader receives an order from a customer and executes the order by sending the goods. The
customer’s order for goods constitutes the offer which was accepted by the trader by sending
the goods. It is a case of acceptance by conduct. Here the trader is accepting the offer by the
performance of the act.

Who can Accept?

In the case of a specific offer, it can be accepted only by that person to whom it is made.The
rule of law is that if A wants to enter into a contract with B, then C cannot substitutehimself
for Bwithout A’s consent.
Example
Boulton v. Jones27
. The facts of this case were as follows: B, who was a manager withX, purchased his
business. J, to whom, X owed a debt, placed an order with X for the supply of certain goods.
B supplied the goods even though the order was not addressed to him. J refused to pay B for
the goods because he, by entering into contract with X, intended to set-off his debt against X.
Held : The offer was made to X and it was not in the power of B to have accepted the same.
In the case of a general offer, it can be accepted by anyone by complying with the terms of
the offer.
Example
Carlill v.Carbolic Smoke Ball Co.*

Legal Rules for the Acceptance: 28

1. Acceptance must be absolute and unqualified:

• An acceptance to be valid it must be absolute and unqualified and in accordance with the
exact terms of the offer.

26
THE INDIAN CONTRACT ACT, 1872 ACT NO. 9 OF 18721
27
Boultan vs Jones 857) 2 H and N 564, [1857] EngR 935, (1857) 157 ER 232
28
Korobikin Russell –status quo bias and defend contract rules page 10
• An acceptance with a variation, slight, is no acceptance, and may amount to a mere counter-
offer (i.e.., original may or may not accept
Example:A offers to sell his house to B for Rs. two lakhs. B accepts the offer and
promises to pay the price in four installments. This isnotpay the acceptance as the
acceptance is with variation inthe terms of the offer.

2. Acceptance must be communicated: Mere mental acceptance is no acceptance, But there

is no requirement of communication of acceptance of general offer.
• For a valid acceptance, acceptance must not only be made by the offeree but it must also be
communicated by the offeree to the offeror.
• Communication of the acceptance must be expressed or implied.
• A mere mental acceptance is no acceptance.
Example The manager of Railway Company received a draft agreement relating to the
supply of coal. The manager marked the draft with the words “Approved” and put the same
in the drawer of his table and forgot all about it. Held, there was no contract between the
parties as the acceptance was not communicated. It may however, be pointed out that the
Court construed a conduct to parties as railway company was accepting the supplies of coal
from time to time.

3. Manner of acceptance
General rule say that it must be as per the manner prescribed by offeror. If no mode is
prescribed in which it can beaccepted, then it must be in some usual and reasonable manner.
• Communication of the acceptance must be expressed or implied.
• A mere mental acceptance is no acceptance.

4. If there is deviation in communication of an acceptance of offer, offeror may reject

such acceptance by sending notice within reasonable time. If the offeror doesn’t send notice
or rejection, he accepted acceptance of offer.
Example:A offers B and indicates that the acceptance be given by telegram. B sends his
acceptance by ordinary post. It is a valid acceptance unless A insists for acceptance in the
prescribed manner.

5. Acceptance of offer must be made by offeror.

Example: A applied for the headmastership of a school. He was selected by the appointing
authority but the decision was not communicated to him.However, one of members in his
individual capacity informed him about the selection. Subsequently, the appointing authority
cancelled its decision.A sued the school for breach of contract. The Court rejected the A’s
action and held that there was no notice of acceptance. “Information by unauthorized person
is as insufficient as overhearing from behind the door”.

6) Acceptance must be expressed (or) implied:

• An acceptance may be given either by words (or) by conduct.
• An acceptance which is expressed by words (i.e.., spoken or written) is called ‘expressed
acceptance’.
• An acceptance which is inferred by conduct of the person (or) by circumstances of the case
is called an ‘implied or tacit acceptance’.
.

7. Time limit for acceptance

• If the offer prescribes the time limit, it must be accepted within specified time.
• If the offer does not prescribe the time limit, it must be accepted within reasonable time.
Example:A applied (offered) for shares in a company in early June. The allotment
(Acceptance) was made in late November. A refused to take the shares. Held, A was entitled
to do so as the reasonable time for acceptance had elapsed.

8. Acceptance of offer may be expressly (by words spoken or written); or impliedly (by
acceptance of consideration); or by performance of conditions (e.g.in case of a general offer)

9. Mere silence is not acceptance of the offer

Example A offers to B to buy his house for Rs.5 lakhs and writes “If I hear no more about it
within a week, I shall presume the house is mine for Rs.5 lakhs. “B does not respond. Here,
no contract is concluded between A and B.

10. However, following are the two exceptions to the above rule. It means silence
amounts as acceptance of offer.
• Where offeree agrees that non – refusal by him within specified time shall amount to
acceptance of offer.
• When there is custom or usage of trade which specified that silence shall amount to
acceptance.

11. Acceptance subject to the contract is no acceptance

If the acceptance has been given ‘subject to the contract” or subject to approval by certain
persons, it has not effect at all. Such an acceptance will not create binding contract until a
formal contract is prepared and signed by all the parties.

General Rules as to Communication of Acceptance29

1. In case of acceptance by post

Where the acceptance is given by post, the communication of acceptance is complete as
against the proposer when the letter of acceptance is posted. Thus, mere posting of letter of
acceptance is sufficient to conclude a contract. However, the letter must be properly
addressed and stamped.

2. Delayed or no delivery of letter

Where the letter of acceptance is posted by the acceptor but it never reaches the offeror, or it
is delayed in transit, it will not affect the validity of acceptance. The offerer is bound by the
acceptance.

3. Acceptance by telephones telex ortax

If the communication of an acceptance is made by telephone, tele-printer, telex, fax
machines, etc, it completes when the acceptance is received by the offeror. The contract is
concluded as soon as the offeror receives not hears the acceptance.

4. The place of Contract

In case of acceptance by the post, the place where the letter is posted is the place of contract.
Where the acceptance is given by instantaneous means of communication (telephone, fax,
tele-printer, telex etc.), the contract is made at the place where the acceptance is received,

5. The time of Contract

29
Economic analysis of the law of contract by Posner and Eric
In case of acceptance by post, the time of posting the letter of acceptance to the time of
contract. But in case of acceptance by instantaneous means of communication, the time of
contract is the time when the offeror gets the communication, the time of contract is the time
when offeror gets the communication of acceptance.

6. Communication of acceptance in case of an agent.

Where the offer has been made through an agent, the communication of acceptance is
completed when the acceptance is given either to the agent or to the principal. In such a case,
if the agent fails to convey the acceptance received from offeree, still the principal is bound
by the acceptance.