Beruflich Dokumente
Kultur Dokumente
01
Contract Act-2
Irwin/McGraw-Hill
10-2
Offer or Proposal
When one person signifies to another his willingness to do or to abstain from doing any thing with a view to -obtaining the assent of that person to such act or absentinence , he is said to make a proposal/offer: Person making the proposal is called PROMISOR & person accepting is called PROMISEE
Essential
of a valid offer:
An offer may be generic or specific: According to sec 2 ( a) an offer must be made to a specific person . An offer may be made to the world at large . But the contract is made only with the person who accepts & fulfills the condition of the proposal
Irwin/McGraw-Hill
The McGraw-Hill Companies, Inc., 2000
10-3
Ex: Co offered by ad that he who contacts epidemic influenza , cold or any disease after taking medicine as per printed directions will be given an award; one person took medicine & suffered from influenza & was entitled to recover the promised award. In the case of general offer of reward for some information or restoration of a missing thing , the offer is open for acceptance to only one person who performs the required condition & as soon as the condition is performed , offer is closed
Irwin/McGraw-Hill
10-4
offer should be made within the intention of creating legal obligation. Examples
Do you intend to sell your motorcycle? It is not a proposal
Similarly a mere statement of intention :- I may sell my car if I can get Rs 2 lakhs for it -- It is not a proposal But if M says to N Will you buy my car for Rs2 lakhs or I am willing to sell my car to you for Rs 2 lakhs . It is a proposal as it has been made with the intention of obtaining assent of N
The McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
10-5
Offer or Proposal
Essential
of a valid offer:
An offer may be express or implied: Express offer is expressed by words , spoken or written & one which is inferred from the conduct of a person or circumstances of the case is implied. A shoe shiner starts shining shoe without being asked to do so, a person who allows this work without giving any verbal or written acceptance for this work has to pay for shoe shining work , because this is an implied offer. DTC runs buses on different routes to carry passengers at the scheduled fares. This is an implied offer by DTC
Irwin/McGraw-Hill
10-6
offer must contemplate giving rise to legal consequences & be capable of creating legal relations:
Ex : offer to a friend for dinner or offer to your spouse to take him/her for movie is not a valid offer for creating binding agreement / contract the terms of an offer must be certain & not loose or vague Ex: M purchased a horse from N & promised to buy another if first horse proved lucky. M refused to buy second horse. N can not enforce the agreement or sue him because the term of agreement is vague & uncertain
An invitation to offer is not an offer EX: catalogues of prices, or display of goods with prices marked on it do not constitute an offer. These are an invitation for an offer. Transmission of such an offer does not amount to supply of an unlimited quantity of goods as soon as an order is given
Irwin/McGraw-Hill
The McGraw-Hill Companies, Inc., 2000
10-7
An offer should not contain a term the non compliance of which would amount to acceptance
Ex: An offeror can not say that if acceptance is not communicated up to a certain date , the offer would be presumed to have been accepted . If the offeree does not reply then there is no contract, because no condition of obligation can be imposed on him , on the ground of justice.
An
Irwin/McGraw-Hill
offer can be made subject to any terms & conditions. An offeror may attach any terms & conditions to the
offer. He may even prescribe the mode of acceptance.
The McGraw-Hill Companies, Inc., 2000
10-8
Ex: An applicant was informed for allotment of shares & deposit the call money by 31 Dec 09. Deposit of money means giving acceptance. If money not deposited by 31 Dec 09 then the offer lapses
Irwin/McGraw-Hill
10-9
An offer lapses by the death or insanity of the offeror or the offeree before acceptance- Sec 6(4) An offer lapses by revocation : an offer is revoked when it is retracted by the offeror. An offer may be revoked, at any time before acceptance.
Ex : At an auction A offers highest bid but he withdraws it before fall of hammer . There is no concluded contract
An offer stands revoked if the offeree fails to fulfill a condition precedent to acceptance ( sec 6(3) An offer lapses by subsequent illegally or destruction of a subject matter
The McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
10-10
Acceptance-sec 2(b)
When
the person to whom the proposal is made signifies his willingness thereto the proposal is said to be accepted :
By
accepting offer: Acceptor expresses his willingness to be bound by the terms & conditions of an offer.
Irwin/McGraw-Hill
The McGraw-Hill Companies, Inc., 2000
10-11
Acceptance is to an offer what a lighted match stick is to a gun powder It produces something which can not be recalled
Irwin/McGraw-Hill
10-12
Acceptance-sec 2(b)
Analogy
Acceptance is to an offer what a lighted match stick is to a gun powder It produces something which can not be recalled
Irwin/McGraw-Hill
10-13
offer can be accepted by the person to whom it is made or to a person who has been authorized on behalf of the person to whom the offer has been made
Irwin/McGraw-Hill
10-14
Irwin/McGraw-Hill
10-15
Irwin/McGraw-Hill
10-16
Acceptance must be given before an offer lapses or is revoked Provisional acceptance is no acceptance.- offer may be withdrawn
before given final acceptance
Irwin/McGraw-Hill
The McGraw-Hill Companies, Inc., 2000
10-17
Proposer
is legally bound by the acceptance effected through postal medium-when the latter is prepared, addressed, stamped & mailed even though it is delayed or lost in transit
Irwin/McGraw-Hill
The McGraw-Hill Companies, Inc., 2000
10-18
no
Irwin/McGraw-Hill
10-19
Termination of an offercircumstances
Lapse Failure to fulfill a condition precedentsec 6(3) Offer is terminated by the failure of the acceptor to fulfill a condition precedent to acceptance- Offer
to sell car for Rs 1 lakh - buyer( acceptor) to show driving license ( Condition)
Irwin/McGraw-Hill
The McGraw-Hill Companies, Inc., 2000
10-20
Rejection- By rejecting an offer- offeror can terminate the offer- Giving counter offer also implies rejecting an offer
Destruction of the subject matter or illegality- If the thing offered is destroyed or can not be bought & sold due to operation of law the offer it self lapses
The McGraw-Hill Companies, Inc., 2000
Irwin/McGraw-Hill
10-21
Revocation- Withdrawal of an offer is called Revocation Proposal may be revoked any time by the proposer before communication of its acceptance
Irwin/McGraw-Hill
10-22
THANKS
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