1. An acceptance is to offer what a lighted match is to a train of gun power. It produces something which cannot be recalled or undone.

But the powder may have lain till it has become damp or the man who has lain the train may remove it before the match is applied According to this statement it is clear that an offer has little or no legal consequences. Once it is accepted it creates a binding legal relationship between an offeror and acceptor. Acceptance is a final and unqualified expression of assent to the terms of an offer .The objective test of agreement applies to an acceptance no less than to an offer. On this test, a mere acknowledgement of an offer would not be an acceptance. If a contract is to be made, the intention of the offeree to accept must be expressed without leaving room for doubt as t the fact of acceptance, or as to the coincidence of the terms of the acceptance with those of the offer. Section 2(b)- when the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted. Thus acceptance is the assent given to a proposal, and it has the effect of converting the proposal into promise. LEGAL RULES AS TO ACCEPTANCE 1. Acceptance to be absolute, unconditional, unqualified and should confirm with the terms of the Offer Acceptance to be communicated Case Law - Felthouse Vs. Bindley Acceptance to be communicated in the mode prescribed It must be within reasonable time It cannot precede an Offer The Acceptor must be aware of the proposal at the time of acceptance. Case Law - Lalman Shukla Vs. Gowri Dutt It must show an intention on the part of the Acceptor to fulfill the terms of the Offer It must be given to the party making the Offer It must be given before the Offer lapses or is withdrawn It cannot be implied from silence a. Reasonable opportunity to speak and has obtained benefit b. Previous dealings

2.

3. 4. 5. 6.

7. 8. 9. 10.

Exceptions :

2. An agreement without consideration is void elucidate

(1) it is expressed in writing and registered under the law for the time being in force for the registration of documents, and is made on account of natural love and affection between parties standing in a near relation to each other; or unless. (2) it is a promise to compensate, wholly or in part, a person who has already voluntarily done something for the promisor, or something which the promisor was legally compellable to do; or unless. (3) it is a promise, made in writing and signed by the person to be charged therewith or by his agent generally or specially authorized in that behalf, to pay wholly or in part debt of which the creditor might have enforced payment but for the law for the limitation of suits. In any of these cases, such an agreement is a contract. Explanation 1 : Nothing in this section shall affect the validity, as between the donor and donee, of any gift actually made. Explanation 2 : An agreement to which the consent of the promisor is freely given is not void merely because the consideration is inadequate; but the inadequacy of the consideration may be taken into account by the Court in determining the question whether the consent of the promisor was freely given. Illustrations (a) A promises, for no consideration, to give to B Rs. 1,000. This is a void agreement. (b) A, for natural love and affection, promises to give his son, B, Rs. 1,000. A puts his promise to B into writing and registers it. This is a contract. (c) A finds Bs purse and gives it to him. B promises to give A Rs. 50. This is a contract. (d) A supports Bs infant son. B promises to pay As expenses in so doing. This is a contract. (e) A owes B Rs. 1,000, but the debt is barred by the Limitation Act. A signs a written promise to pay B Rs. 500 on account of the debt. This is a contract. (f) A agrees to sell a horse worth Rs. 1,000 for Rs. 10. As consent to the agreement was freely given. The agreement is a contract notwithstanding the inadequacy of the consideration. (g) A agrees to sell a horse worth Rs. 1,000 for Rs. 10. A denies that his consent to the agreement was freely given. The inadequacy of the consideration is a fact which the Court should take into account in considering whether or not As consent was freely given. Comments

LEGAL RULES AS TO CONSIDERATION 1. It must move at the desire of the Promisor 2. It may move from the Promisee or any other person Case Law - Chinnaya Vs. Ramayya It may be an Act, Abstinence, Forbearance of a Return Promise a) Forbearance to sue b) Compromise of a disputed claim c) Composition with creditors It may be Past, Present or Future It need not be adequate It must be real and not illusory a. Physical impossibility b. Legal impossibility c. Uncertain consideration d. Illusory consideration It must be something which the Promisor is not already bound to do Consideration must be lawful a. Not forbidden by Law b. Defeats the provisions of Law c. Fraudulent d. Involves injury to person or property e. Court regards it as immoral or opposed to public policy It must not be Illegal, Immoral or Opposed to Public Policy

3.

4. 5. 6.

7. 8.

9.

A personal services contract is a legal agreement between an individual employee and an employer. This agreement clarifies the terms and conditions of the employment. 1. Effects
o

Through a personal services contract, the employee-employer relationship is better defined. The responsibilities of the employee and employer are also clearly identified. Terms

The personal services contract is created by the employer and given to the employee. However, employees are not required to agree to the terms of the contract. Counter proposals can occur with a personal services agreement that the employee does not agree to. In some cases, an employer may not hire a person unless they agree to the terms.

Negotiation
o

Some people may opt to bring in professionals to help them negotiate the working conditions and wages established in their personal services contract. In this case, a lawyer can help a person obtain a contract that serves his best interest. Considerations

Employees must also be aware that employers draft personal services contracts for their own benefit. Therefore, the contracts are frequently one-sided and often give the employer more rights and flexibility than the employee. Warning

The time to negotiate with an employer is before contracts are signed. Employees should be careful to thoroughly read through personal services contracts and any other legally binding documents before placing their signatures on them.