{"id":5525,"date":"2022-05-16T18:31:18","date_gmt":"2022-05-16T18:31:18","guid":{"rendered":"https:\/\/commerceiets.com\/?p=5525"},"modified":"2022-05-16T18:31:18","modified_gmt":"2022-05-16T18:31:18","slug":"offer-and-acceptance-contract-law-notes","status":"publish","type":"post","link":"https:\/\/commerceiets.com\/offer-and-acceptance-contract-law-notes\/","title":{"rendered":"OFFER AND ACCEPTANCE CONTRACT LAW NOTES"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/commerceiets.com\/offer-and-acceptance-contract-law-notes\/#OFFER_AND_ACCEPTANCE_CONTRACT_LAW_NOTES\" title=\"OFFER AND ACCEPTANCE CONTRACT LAW NOTES\">OFFER AND ACCEPTANCE CONTRACT LAW NOTES<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/commerceiets.com\/offer-and-acceptance-contract-law-notes\/#QUESTION_Define_Offer_What_are_the_essentials_of_a_valid_offer\" title=\"QUESTION: Define Offer? What are the essentials of a valid offer?\">QUESTION: Define Offer? What are the essentials of a valid offer?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/commerceiets.com\/offer-and-acceptance-contract-law-notes\/#According_to_Section_28_of_the_Indian_Contract_Act_1872\" title=\"According to Section 28 of the Indian Contract Act, 1872 \">According to Section 28 of the Indian Contract Act, 1872 <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/commerceiets.com\/offer-and-acceptance-contract-law-notes\/#According_to_Section_2c_of_Indian_Contract_Act_1872\" title=\"According\nto Section 2(c) of Indian Contract Act, 1872\">According\nto Section 2(c) of Indian Contract Act, 1872<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/commerceiets.com\/offer-and-acceptance-contract-law-notes\/#ESSENTIALS_OF_VALID_OFFER_OR_PROPOSAL\" title=\"ESSENTIALS OF VALID OFFER OR PROPOSAL\">ESSENTIALS OF VALID OFFER OR PROPOSAL<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/commerceiets.com\/offer-and-acceptance-contract-law-notes\/#Offer_or_proposal_must_be_capable_of_creating_legal_relationship\" title=\"Offer or proposal must be capable of creating legal relationship \">Offer or proposal must be capable of creating legal relationship <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/commerceiets.com\/offer-and-acceptance-contract-law-notes\/#Offer_or_proposal_must_be_definite_and_certain\" title=\"Offer or proposal must be definite and certain \">Offer or proposal must be definite and certain <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/commerceiets.com\/offer-and-acceptance-contract-law-notes\/#An_offer_or_a_proposal_must_be_communicated_to_the_offeree\" title=\"An offer or a proposal must be communicated to the offeree \">An offer or a proposal must be communicated to the offeree <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/commerceiets.com\/offer-and-acceptance-contract-law-notes\/#Offer_or_proposal_must_be_made_with_a_view_to_obtaining_the_assent_of_the_other_party\" title=\"Offer or proposal must be made with a view to obtaining the assent of the other party \">Offer or proposal must be made with a view to obtaining the assent of the other party <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/commerceiets.com\/offer-and-acceptance-contract-law-notes\/#An_offer_or_a_proposal_may_be_conditional\" title=\"An offer or a proposal may be conditional \">An offer or a proposal may be conditional <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/commerceiets.com\/offer-and-acceptance-contract-law-notes\/#An_offer_or_a_proposal_should_not_contain_such_term_the_non_compliance_of_which_would_amount_to_acceptance\" title=\"An offer or a proposal should not contain such term the non compliance of which would amount to acceptance. \">An offer or a proposal should not contain such term the non compliance of which would amount to acceptance. <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/commerceiets.com\/offer-and-acceptance-contract-law-notes\/#An_offer_or_a_proposal_must_be_distinguished_from_declaration_of_intention\" title=\"An offer or a proposal must be distinguished from declaration of intention \">An offer or a proposal must be distinguished from declaration of intention <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/commerceiets.com\/offer-and-acceptance-contract-law-notes\/#An_invitation_to_offer_is_not_an_offer\" title=\"An invitation to offer&nbsp;is not an offer \">An invitation to offer&nbsp;is not an offer <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/commerceiets.com\/offer-and-acceptance-contract-law-notes\/#Offer_or_proposal_may_be_expressed_or_implied\" title=\"Offer or proposal may be expressed or implied \">Offer or proposal may be expressed or implied <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/commerceiets.com\/offer-and-acceptance-contract-law-notes\/#Lapse_of_an_offer_or_proposal\" title=\"Lapse of an offer or proposal \">Lapse of an offer or proposal <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/commerceiets.com\/offer-and-acceptance-contract-law-notes\/#Two_identical_cross_offers_do_not_make_a_contract\" title=\"Two identical cross offers do not make a contract\">Two identical cross offers do not make a contract<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/commerceiets.com\/offer-and-acceptance-contract-law-notes\/2\/#OFFER_AND_ACCEPTANCE_CONTRACT_LAW_NOTES-2\" title=\"OFFER AND ACCEPTANCE CONTRACT LAW NOTES\">OFFER AND ACCEPTANCE CONTRACT LAW NOTES<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/commerceiets.com\/offer-and-acceptance-contract-law-notes\/2\/#QUESTION_Define_Acceptance_Explain_the_rules_of_valid_acceptance\" title=\"QUESTION: Define Acceptance? Explain the rules of valid acceptance.\">QUESTION: Define Acceptance? Explain the rules of valid acceptance.<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/commerceiets.com\/offer-and-acceptance-contract-law-notes\/2\/#WHO_MAY_ACCEPT\" title=\"WHO MAY ACCEPT?\">WHO MAY ACCEPT?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/commerceiets.com\/offer-and-acceptance-contract-law-notes\/2\/#VALID_ESSENTIALS_OF_ACCEPTANCE\" title=\"VALID ESSENTIALS OF ACCEPTANCE\">VALID ESSENTIALS OF ACCEPTANCE<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/commerceiets.com\/offer-and-acceptance-contract-law-notes\/2\/#1_ACCEPTANCE_MUST_BE_ABSOLUTE_AND_UNCONDITIONAL\" title=\"1. ACCEPTANCE MUST BE ABSOLUTE AND UNCONDITIONAL \">1. ACCEPTANCE MUST BE ABSOLUTE AND UNCONDITIONAL <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/commerceiets.com\/offer-and-acceptance-contract-law-notes\/2\/#2_ACCEPTANCE_MUST_BE_COMMUNICATED_TO_THE_OFFEROR\" title=\" 2. ACCEPTANCE MUST BE COMMUNICATED TO THE OFFEROR \"> 2. ACCEPTANCE MUST BE COMMUNICATED TO THE OFFEROR <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/commerceiets.com\/offer-and-acceptance-contract-law-notes\/2\/#3_ACCEPTANCE_MUST_BE_ACCORDING_TO_THE_PRESCRIBED_MODE\" title=\"3. ACCEPTANCE MUST BE ACCORDING TO THE PRESCRIBED MODE \">3. ACCEPTANCE MUST BE ACCORDING TO THE PRESCRIBED MODE <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/commerceiets.com\/offer-and-acceptance-contract-law-notes\/2\/#4_ACCEPTANCE_MUST_FOLLOW_THE_CONTRACT_OFFER\" title=\"4. ACCEPTANCE MUST FOLLOW THE CONTRACT OFFER \">4. ACCEPTANCE MUST FOLLOW THE CONTRACT OFFER <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/commerceiets.com\/offer-and-acceptance-contract-law-notes\/2\/#5_ACCEPTANCE_MUST_BE_MADE_WITHIN_A_REASONABLE_TIME\" title=\"5. ACCEPTANCE MUST BE MADE WITHIN A REASONABLE TIME\">5. ACCEPTANCE MUST BE MADE WITHIN A REASONABLE TIME<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/commerceiets.com\/offer-and-acceptance-contract-law-notes\/2\/#6_ACCEPTANCE_MAY_BE_EXPRESSED_OR_IMPLIED\" title=\"6. ACCEPTANCE MAY BE EXPRESSED OR IMPLIED\">6. ACCEPTANCE MAY BE EXPRESSED OR IMPLIED<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/commerceiets.com\/offer-and-acceptance-contract-law-notes\/2\/#7_SILENCE_CANNOT_AMOUNT_TO_ACCEPTANCE\" title=\"7. SILENCE CANNOT AMOUNT TO ACCEPTANCE \">7. SILENCE CANNOT AMOUNT TO ACCEPTANCE <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-28\" href=\"https:\/\/commerceiets.com\/offer-and-acceptance-contract-law-notes\/2\/#8ACCEPTANCE_MUST_BE_GIVEN_BEFORE_LAPSE_OF_AN_OFFER\" title=\"8.ACCEPTANCE MUST BE GIVEN BEFORE LAPSE OF AN OFFER \">8.ACCEPTANCE MUST BE GIVEN BEFORE LAPSE OF AN OFFER <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-29\" href=\"https:\/\/commerceiets.com\/offer-and-acceptance-contract-law-notes\/2\/#9_IT_MAY_BE_GIVEN_BY_PERFORMING_CONDITIONS_OR_RECEIVING_CONSIDERATION\" title=\"9. IT MAY BE GIVEN BY PERFORMING CONDITIONS OR RECEIVING CONSIDERATION \">9. IT MAY BE GIVEN BY PERFORMING CONDITIONS OR RECEIVING CONSIDERATION <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-30\" href=\"https:\/\/commerceiets.com\/offer-and-acceptance-contract-law-notes\/2\/#10_ACCEPTANCE_MUST_BE_MADE_BY_THE_PERSON_TO_WHOM_THE_PROPOSAL_IS_MADE\" title=\"10. ACCEPTANCE MUST BE MADE BY THE PERSON TO WHOM THE PROPOSAL IS MADE\">10. ACCEPTANCE MUST BE MADE BY THE PERSON TO WHOM THE PROPOSAL IS MADE<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-31\" href=\"https:\/\/commerceiets.com\/offer-and-acceptance-contract-law-notes\/3\/#OFFER_AND_ACCEPTANCE_CONTRACT_LAW_NOTES-3\" title=\"OFFER AND ACCEPTANCE CONTRACT LAW NOTES\">OFFER AND ACCEPTANCE CONTRACT LAW NOTES<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-32\" href=\"https:\/\/commerceiets.com\/offer-and-acceptance-contract-law-notes\/3\/#QUESTION_%E2%80%9CA_mere_mental_assent_not_evidenced_by_the_words_or_conduct_does_not_constitute_acceptance%E2%80%9D_Comment\" title=\"QUESTION: \u201cA mere mental assent not evidenced by the words or conduct does not constitute acceptance.\u201d Comment.\">QUESTION: \u201cA mere mental assent not evidenced by the words or conduct does not constitute acceptance.\u201d Comment.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-33\" href=\"https:\/\/commerceiets.com\/offer-and-acceptance-contract-law-notes\/4\/#OFFER_AND_ACCEPTANCE_CONTRACT_LAW_NOTES-4\" title=\"OFFER AND ACCEPTANCE CONTRACT LAW NOTES\">OFFER AND ACCEPTANCE CONTRACT LAW NOTES<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-34\" href=\"https:\/\/commerceiets.com\/offer-and-acceptance-contract-law-notes\/4\/#QUESTION_Discuss_rules_regarding_offer_acceptance_and_revocation_with_examples\" title=\"QUESTION: Discuss rules regarding offer, acceptance and revocation with examples?\">QUESTION: Discuss rules regarding offer, acceptance and revocation with examples?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-35\" href=\"https:\/\/commerceiets.com\/offer-and-acceptance-contract-law-notes\/4\/#RULES_REGARDING_OFFER\" title=\"RULES REGARDING OFFER\">RULES REGARDING OFFER<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-36\" href=\"https:\/\/commerceiets.com\/offer-and-acceptance-contract-law-notes\/4\/#Offer_or_proposal_must_be_capable_of_creating_legal_relationship-2\" title=\"Offer or proposal must be capable of creating legal relationship \">Offer or proposal must be capable of creating legal relationship <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-37\" href=\"https:\/\/commerceiets.com\/offer-and-acceptance-contract-law-notes\/4\/#Offer_or_proposal_must_be_definite_and_certain-2\" title=\"Offer or proposal must be definite and certain \">Offer or proposal must be definite and certain <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-38\" href=\"https:\/\/commerceiets.com\/offer-and-acceptance-contract-law-notes\/4\/#An_offer_or_a_proposal_must_be_communicated_to_the_offeree-2\" title=\"An offer or a proposal must be communicated to the offeree \">An offer or a proposal must be communicated to the offeree <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-39\" href=\"https:\/\/commerceiets.com\/offer-and-acceptance-contract-law-notes\/4\/#Offer_or_proposal_must_be_made_with_a_view_to_obtaining_the_assent_of_the_other_party-2\" title=\"Offer or proposal must be made with a view to obtaining the assent of the other party \">Offer or proposal must be made with a view to obtaining the assent of the other party <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-40\" href=\"https:\/\/commerceiets.com\/offer-and-acceptance-contract-law-notes\/4\/#An_offer_or_a_proposal_may_be_conditional-2\" title=\"An offer or a proposal may be conditional \">An offer or a proposal may be conditional <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-41\" href=\"https:\/\/commerceiets.com\/offer-and-acceptance-contract-law-notes\/4\/#An_offer_or_a_proposal_should_not_contain_such_term_the_non_compliance_of_which_would_amount_to_acceptance-2\" title=\"An offer or a proposal should not contain such term the non compliance of which would amount to acceptance. \">An offer or a proposal should not contain such term the non compliance of which would amount to acceptance. <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-42\" href=\"https:\/\/commerceiets.com\/offer-and-acceptance-contract-law-notes\/4\/#An_offer_or_a_proposal_must_be_distinguished_from_declaration_of_intention-2\" title=\"An offer or a proposal must be distinguished from declaration of intention \">An offer or a proposal must be distinguished from declaration of intention <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-43\" href=\"https:\/\/commerceiets.com\/offer-and-acceptance-contract-law-notes\/4\/#An_invitation_to_offer_is_not_an_offer-2\" title=\"An invitation to offer&nbsp;is not an offer \">An invitation to offer&nbsp;is not an offer <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-44\" href=\"https:\/\/commerceiets.com\/offer-and-acceptance-contract-law-notes\/4\/#Offer_or_proposal_may_be_expressed_or_implied-2\" title=\"Offer or proposal may be expressed or implied \">Offer or proposal may be expressed or implied <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-45\" href=\"https:\/\/commerceiets.com\/offer-and-acceptance-contract-law-notes\/4\/#Lapse_of_an_offer_or_proposal-2\" title=\"Lapse of an offer or proposal \">Lapse of an offer or proposal <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-46\" href=\"https:\/\/commerceiets.com\/offer-and-acceptance-contract-law-notes\/4\/#Two_identical_cross_offers_do_not_make_a_contract-2\" title=\"Two identical cross offers do not make a contract\">Two identical cross offers do not make a contract<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-47\" href=\"https:\/\/commerceiets.com\/offer-and-acceptance-contract-law-notes\/4\/#RULES_REGARDING_ACCEPTANCE\" title=\"RULES REGARDING ACCEPTANCE\">RULES REGARDING ACCEPTANCE<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-48\" href=\"https:\/\/commerceiets.com\/offer-and-acceptance-contract-law-notes\/4\/#1_ACCEPTANCE_MUST_BE_ABSOLUTE_AND_UNCONDITIONAL-2\" title=\"1. ACCEPTANCE MUST BE ABSOLUTE AND UNCONDITIONAL \">1. ACCEPTANCE MUST BE ABSOLUTE AND UNCONDITIONAL <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-49\" href=\"https:\/\/commerceiets.com\/offer-and-acceptance-contract-law-notes\/4\/#2_ACCEPTANCE_MUST_BE_COMMUNICATED_TO_THE_OFFEROR-2\" title=\" 2. ACCEPTANCE MUST BE COMMUNICATED TO THE OFFEROR \"> 2. ACCEPTANCE MUST BE COMMUNICATED TO THE OFFEROR <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-50\" href=\"https:\/\/commerceiets.com\/offer-and-acceptance-contract-law-notes\/4\/#3_ACCEPTANCE_MUST_BE_ACCORDING_TO_THE_PRESCRIBED_MODE-2\" title=\"3. ACCEPTANCE MUST BE ACCORDING TO THE PRESCRIBED MODE \">3. ACCEPTANCE MUST BE ACCORDING TO THE PRESCRIBED MODE <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-51\" href=\"https:\/\/commerceiets.com\/offer-and-acceptance-contract-law-notes\/4\/#4_ACCEPTANCE_MUST_FOLLOW_THE_CONTRACT_OFFER-2\" title=\"4. ACCEPTANCE MUST FOLLOW THE CONTRACT OFFER \">4. ACCEPTANCE MUST FOLLOW THE CONTRACT OFFER <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-52\" href=\"https:\/\/commerceiets.com\/offer-and-acceptance-contract-law-notes\/4\/#5_ACCEPTANCE_MUST_BE_MADE_WITHIN_A_REASONABLE_TIME-2\" title=\"5. ACCEPTANCE MUST BE MADE WITHIN A REASONABLE TIME\">5. ACCEPTANCE MUST BE MADE WITHIN A REASONABLE TIME<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-53\" href=\"https:\/\/commerceiets.com\/offer-and-acceptance-contract-law-notes\/4\/#6_ACCEPTANCE_MAY_BE_EXPRESSED_OR_IMPLIED-2\" title=\"6. ACCEPTANCE MAY BE EXPRESSED OR IMPLIED\">6. ACCEPTANCE MAY BE EXPRESSED OR IMPLIED<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-54\" href=\"https:\/\/commerceiets.com\/offer-and-acceptance-contract-law-notes\/4\/#7_SILENCE_CANNOT_AMOUNT_TO_ACCEPTANCE-2\" title=\"7. SILENCE CANNOT AMOUNT TO ACCEPTANCE \">7. SILENCE CANNOT AMOUNT TO ACCEPTANCE <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-55\" href=\"https:\/\/commerceiets.com\/offer-and-acceptance-contract-law-notes\/4\/#8ACCEPTANCE_MUST_BE_GIVEN_BEFORE_LAPSE_OF_AN_OFFER-2\" title=\"8.ACCEPTANCE MUST BE GIVEN BEFORE LAPSE OF AN OFFER \">8.ACCEPTANCE MUST BE GIVEN BEFORE LAPSE OF AN OFFER <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-56\" href=\"https:\/\/commerceiets.com\/offer-and-acceptance-contract-law-notes\/4\/#9_IT_MAY_BE_GIVEN_BY_PERFORMING_CONDITIONS_OR_RECEIVING_CONSIDERATION-2\" title=\"9. IT MAY BE GIVEN BY PERFORMING CONDITIONS OR RECEIVING CONSIDERATION \">9. IT MAY BE GIVEN BY PERFORMING CONDITIONS OR RECEIVING CONSIDERATION <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-57\" href=\"https:\/\/commerceiets.com\/offer-and-acceptance-contract-law-notes\/4\/#10_ACCEPTANCE_MUST_BE_MADE_BY_THE_PERSON_TO_WHOM_THE_PROPOSAL_IS_MADE-2\" title=\"10. ACCEPTANCE MUST BE MADE BY THE PERSON TO WHOM THE PROPOSAL IS MADE\">10. ACCEPTANCE MUST BE MADE BY THE PERSON TO WHOM THE PROPOSAL IS MADE<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-58\" href=\"https:\/\/commerceiets.com\/offer-and-acceptance-contract-law-notes\/4\/#REVOCATION_OF_OFFER_AND_ACCEPTANCE\" title=\"REVOCATION OF OFFER AND ACCEPTANCE\">REVOCATION OF OFFER AND ACCEPTANCE<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-59\" href=\"https:\/\/commerceiets.com\/offer-and-acceptance-contract-law-notes\/4\/#CONSTITUENTS_OF_REVOCATION_OF_OFFER\" title=\"CONSTITUENTS\nOF REVOCATION OF OFFER\">CONSTITUENTS\nOF REVOCATION OF OFFER<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-60\" href=\"https:\/\/commerceiets.com\/offer-and-acceptance-contract-law-notes\/4\/#COMMUNICATION_OF_REVOCATION\" title=\"COMMUNICATION OF REVOCATION \">COMMUNICATION OF REVOCATION <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-61\" href=\"https:\/\/commerceiets.com\/offer-and-acceptance-contract-law-notes\/4\/#MODES_OF_REVOCATION_OF_OFFER\" title=\"MODES OF REVOCATION OF OFFER\">MODES OF REVOCATION OF OFFER<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-62\" href=\"https:\/\/commerceiets.com\/offer-and-acceptance-contract-law-notes\/4\/#WHEN_OFFERS_ARE_CONSIDERED_IRREVOCABLE_EXCEPTION_OF_REVOCATION\" title=\"WHEN OFFERS\nARE CONSIDERED IRREVOCABLE\/ EXCEPTION OF REVOCATION\">WHEN OFFERS\nARE CONSIDERED IRREVOCABLE\/ EXCEPTION OF REVOCATION<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-63\" href=\"https:\/\/commerceiets.com\/offer-and-acceptance-contract-law-notes\/4\/#REVOCATION_OF_ACCEPTANCE\" title=\"REVOCATION OF ACCEPTANCE\">REVOCATION OF ACCEPTANCE<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\" id=\"offer-and-acceptance-contract-law-notes\"><span class=\"ez-toc-section\" id=\"OFFER_AND_ACCEPTANCE_CONTRACT_LAW_NOTES\"><\/span>OFFER AND ACCEPTANCE CONTRACT LAW NOTES<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"638\" height=\"359\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2022\/05\/Offer-and-Acceptance-under-Law-of-Contracts.webp\" alt=\"OFFER AND ACCEPTANCE CONTRACT LAW NOTES\" class=\"wp-image-5526\" srcset=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2022\/05\/Offer-and-Acceptance-under-Law-of-Contracts.webp 638w, https:\/\/commerceiets.com\/wp-content\/uploads\/2022\/05\/Offer-and-Acceptance-under-Law-of-Contracts-300x169.webp 300w\" sizes=\"(max-width: 638px) 100vw, 638px\" \/><figcaption>OFFER AND ACCEPTANCE CONTRACT LAW NOTES<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"question-define-offer-what-are-the-essentials-of-a-valid-offer\"><span class=\"ez-toc-section\" id=\"QUESTION_Define_Offer_What_are_the_essentials_of_a_valid_offer\"><\/span>QUESTION: Define Offer? What are the essentials of a valid offer?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>ANSWER:<\/strong><\/p>\n\n\n\n<p>The term offer is also known as proposal. It is the starting point in the formation of a contract.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"according-to-section-28-of-the-indian-contract-act-1872\"><span class=\"ez-toc-section\" id=\"According_to_Section_28_of_the_Indian_Contract_Act_1872\"><\/span><strong>According to Section 28 of the <a href=\"https:\/\/commerceiets.com\/indian-contract-act-1872\/\">Indian Contract Act, 1872 <\/a><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<blockquote class=\"wp-block-quote is-style-default is-layout-flow wp-block-quote-is-layout-flow\"><p>\u201cWhen one person signifies to another his willingness to do or 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.\u201d<\/p><\/blockquote>\n\n\n\n<p>It means that an offer or a proposal is an expression of will or intention of the parties to the contract. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"according-to-section-2-c-of-indian-contract-act-1872\"><span class=\"ez-toc-section\" id=\"According_to_Section_2c_of_Indian_Contract_Act_1872\"><\/span><strong>According\nto Section 2(c) of Indian Contract Act, 1872<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<blockquote class=\"wp-block-quote is-style-default is-layout-flow wp-block-quote-is-layout-flow\"><p>\u201cThe person who makes an offer is known as Proposer or Offeror or Promisor and the person to whom the proposal or offer is made is known as of the Proposee, Promisee or Offeree. <\/p><\/blockquote>\n\n\n\n<p class=\"has-black-color has-cyan-bluish-gray-background-color has-text-color has-background has-medium-font-size\"><strong>EXAMPLE<\/strong><\/p>\n\n\n\n<p>A offers to sell his motorcycle to B for \u20b9 3,000. B agrees to pay \u20b9 3,000 to A for the motorcycle. In this, A is the Offeror or Promisor and B is the Offeree or Promisee.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"essentials-of-valid-offer-or-proposal\"><span class=\"ez-toc-section\" id=\"ESSENTIALS_OF_VALID_OFFER_OR_PROPOSAL\"><\/span><strong>ESSENTIALS OF VALID OFFER OR PROPOSAL<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"275\" height=\"183\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2022\/02\/images-47.jpg\" alt=\"\" class=\"wp-image-5296\"\/><figcaption>OFFER AND ACCEPTANCE CONTRACT LAW NOTES<\/figcaption><\/figure>\n\n\n\n<p>The various rules\nregarding valid offer for the essentials of valid offer are as follows: <\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"offer-or-proposal-must-be-capable-of-creating-legal-relationship\"><span class=\"ez-toc-section\" id=\"Offer_or_proposal_must_be_capable_of_creating_legal_relationship\"><\/span><strong><em>Offer or proposal must be capable of creating legal relationship <\/em><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>If the offer does not intend to give rise to the legal consequences, it is not a valid offer in the eyes of the law. The social offers or social engagements does not become a valid contract.<\/p>\n\n\n\n<p class=\"has-black-color has-cyan-bluish-gray-background-color has-text-color has-background has-medium-font-size\"><strong>CASE: BALFOUR VS<em>. <\/em>BALFOUR<\/strong><\/p>\n\n\n\n<p>A husband was serving in the Ceylon. He promised orally to his wife, who was living in England, to pay an allowance of $30 per month to her. The husband did not pay the money and the wife filed suit against the husband. It was held that the agreement between them was just a family arrangement and they never intend to create legal relationship. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"offer-or-proposal-must-be-definite-and-certain\"><span class=\"ez-toc-section\" id=\"Offer_or_proposal_must_be_definite_and_certain\"><\/span><strong><em>Offer or proposal must be definite and certain <\/em><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>An offer must be definite and certain. An indefinite or vague offer cannot be accepted as the courts in such cases cannot tell what the parties are to do. The intention of the party must be very clear as to what they intend to do.<\/p>\n\n\n\n<p class=\"has-black-color has-cyan-bluish-gray-background-color has-text-color has-background has-medium-font-size\"><strong>CASE:\nTAYLOR VS. PORTINGTON<\/strong><\/p>\n\n\n\n<p>A agreed to take 2\nhouses on rent for 3 years at the rent of $85 per annum provided the house was\nput into thorough repair and the drawing rooms were decorated according to the \u201cPresent\nStyle\u201d. <\/p>\n\n\n\n<p>\u201cPresent Style\u201d is a vague term as this term would have different meanings to different parties. <\/p>\n\n\n\n<p>Thus, the agreement was declared void as the terms of offer were vague and uncertain.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"an-offer-or-a-proposal-must-be-communicated-to-the-offeree\"><span class=\"ez-toc-section\" id=\"An_offer_or_a_proposal_must_be_communicated_to_the_offeree\"><\/span><strong><em>An offer or a proposal must be communicated to the offeree <\/em><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>An offer must be communicated to the person to whom the same is addressed. Communication of offer is important to conclude an agreement because acceptance can be given only if one knows about the offer. This rule applies to both \u2018specific\u2019 and \u2018general\u2019 offer. <\/p>\n\n\n\n<p>An offer made to a definite person or body of persons is called <strong>specific offer<\/strong>. It must be accepted by that specific person or party only. <\/p>\n\n\n\n<p>The offer made to the public as a whole is called <strong>general offer. <\/strong>It can be accepted by anyone from the public.<\/p>\n\n\n\n<p><strong>Section 4 of the Indian Contract Act, 1872<\/strong> states that communication of an object is complete when it comes to the knowledge of the person to whom it is made. <\/p>\n\n\n\n<p class=\"has-black-color has-cyan-bluish-gray-background-color has-text-color has-background has-medium-font-size\"><strong>CASE: LALMAN SHUKLA VS. GAURI DUTT<\/strong><\/p>\n\n\n\n<p>The nephew of the defendant Gauri was missing. He sent\nhis servant Lalman to find him out. After the servant had left, he announced a\nreward of \u20b951 for anybody who would trace his\nnephew. The plaintiff traced the nephew before having knowledge of the reward\nannounced by the defendant. Subsequently, the plaintiff claimed the reward when\nhe came to know about it. <\/p>\n\n\n\n<p>Held that plantiff could not recover the reward as the\noffer containing the reward was not communicated to him.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"offer-or-proposal-must-be-made-with-a-view-to-obtaining-the-assent-of-the-other-party\"><span class=\"ez-toc-section\" id=\"Offer_or_proposal_must_be_made_with_a_view_to_obtaining_the_assent_of_the_other_party\"><\/span><strong><em>Offer or proposal must be made with a view to obtaining the assent of the other party <\/em><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The offer must be made with an intention to obtain the assent of the other party. The offer made as a prank or a joke is not a valid offer and therefore if accepted, it cannot amount to a valid contract. <\/p>\n\n\n\n<p class=\"has-black-color has-cyan-bluish-gray-background-color has-text-color has-background has-medium-font-size\"><strong>CASE: HARRY VS. NICKERSON<\/strong><\/p>\n\n\n\n<p>N advertised in the newspaper to affect sale of his goods\non a particular day at a particular place. H travelled a long distance to bid\nfor the things. On arrival, he found that the sale was cancelled. He sued N for\nthe breach of the contract. It was held that advertisement was merely\nexpression of an intention and not an offer which could be accepted by\ntravelling to the place of intended sale. <\/p>\n\n\n\n<p class=\"has-black-color has-cyan-bluish-gray-background-color has-text-color has-background has-medium-font-size\"><strong>EXAMPLE<\/strong><\/p>\n\n\n\n<p>If B jokingly offers M to sell his scooter at \u20b910 and M knowing that B is not serious, accepts the offer, such acceptance does not hold any value as the offer made jokingly is not valid. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"an-offer-or-a-proposal-may-be-conditional\"><span class=\"ez-toc-section\" id=\"An_offer_or_a_proposal_may_be_conditional\"><\/span><strong><em>An offer or a proposal may be conditional <\/em><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>An offer can be made subject\nto the condition. In that, it can be accepted only subject to that condition. If\nthe conditions are clearly expressed or written and these have been made known\nto the offeree, then he is bound to fulfill these conditions. Conditional offer\nlapses when the conditions are not fulfilled. <\/p>\n\n\n\n<p class=\"has-black-color has-cyan-bluish-gray-background-color has-text-color has-background has-medium-font-size\"><strong>CASE: THOMPSON V. L M. AND S. RAILWAY\n1930<\/strong><\/p>\n\n\n\n<p>T, who could not read, took an excursion ticket on the railway. On the front of the ticket was printed \u201cfor conditions see back\u2019. One of the conditions was that the railway company would not be liable for personal injuries to the passengers. T was injured by a railway accident. Held T was bound by the conditions and could not recover any damages. <\/p>\n\n\n\n<p class=\"has-black-color has-cyan-bluish-gray-background-color has-text-color has-background has-medium-font-size\"><strong>CASE: MACKILLICAN V. CAMPAGNIE DE MESSAGERIES MARITIMES DE FRANCE<\/strong><\/p>\n\n\n\n<p>A plaintiff purchased a ticket from a railway company. It was printed on the front of the ticket &#8221; for conditions see back&#8221;, but he never cared to read the conditions as these were given in the French language which X could not read. It was held that there was no excuse for the plaintiff that the conditions were in French language because he had sufficient notice as to the conditions and this was his duty to make himself acquainted with them.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"an-offer-or-a-proposal-should-not-contain-such-term-the-non-compliance-of-which-would-amount-to-acceptance\"><span class=\"ez-toc-section\" id=\"An_offer_or_a_proposal_should_not_contain_such_term_the_non_compliance_of_which_would_amount_to_acceptance\"><\/span><strong><em>An offer or a proposal should not contain such term the non compliance of which would amount to acceptance. <\/em><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The offeror cannot\nsay that if the offeree does not communicate acceptance by a certain time, the\noffer would have been deemed to be accepted. The burden of the communication of\nrejection of offer cannot be imposed on the offeree. if offeree sent no reply,\nthere is no contract. <\/p>\n\n\n\n<p class=\"has-black-color has-cyan-bluish-gray-background-color has-text-color has-background has-medium-font-size\"><strong>EXAMPLE<\/strong><\/p>\n\n\n\n<p>A writes to B \u201cI offer to sell my house for \u20b9 40,000. If I do not receive a reply by Monday next, I shall assume that you have accepted the offer\u201d. There will be no contract if B does not reply. <\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"280\" height=\"180\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2022\/02\/images-48.jpg\" alt=\"\" class=\"wp-image-5297\"\/><figcaption>OFFER AND ACCEPTANCE CONTRACT LAW NOTES<\/figcaption><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"an-offer-or-a-proposal-must-be-distinguished-from-declaration-of-intention\"><span class=\"ez-toc-section\" id=\"An_offer_or_a_proposal_must_be_distinguished_from_declaration_of_intention\"><\/span><strong><em>An offer or a proposal must be distinguished from declaration of intention <\/em><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A mere statement of\nintention is only an intention to give an offer. It only states that offer will\nbe made in future. The acceptance of statement of intention does not constitute\na contract. Whether a particular statement is offer or mere a statement of\nintention depends upon the circumstances of the case. <\/p>\n\n\n\n<p class=\"has-black-color has-cyan-bluish-gray-background-color has-text-color has-background has-medium-font-size\"><strong>CASE: FARINA VS. FICKUS<\/strong><\/p>\n\n\n\n<p>A father brought to his would-be son-in-law that his\ndaughter would have a share of what he would leave, after the death of his\nwife. It was held that letter contains a statement of intention only.\n<\/p>\n\n\n\n<p class=\"has-black-color has-cyan-bluish-gray-background-color has-text-color has-background has-medium-font-size\"><strong>CASE: HARVEY VS. FACEY<\/strong><\/p>\n\n\n\n<p>X telegraphed Y, &#8221; Will you sell us Bumper Hall Penn? Telegraph lowest cash price.&#8221; Y replied telegraphically, &#8221; Lowest price for Bumper Hall Penn $900&#8243;. X telegraphed, &#8221; We agree to buy Bumper Hall Penn for $900 asked by you. Please send us your title deeds in order that we may get early possession&#8221;. It was held that there was no offer made by Y. He never intended to sell the Bumper Hall Penn. It is mere an information about the lowest price.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"an-invitation-to-offer-is-not-an-offer\"><span class=\"ez-toc-section\" id=\"An_invitation_to_offer_is_not_an_offer\"><\/span><strong><em>An invitation to offer&nbsp;is not an offer <\/em><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>An offer must be\ndistinguished from \u201cInvitation to an Offer.\u201d The offer should express his\nwillingness to do or abstain from doing something. But where a party proposes\ncertain terms on which he is willing to negotiate, he is not making an offer\nbut only inviting others to make an offer on those terms.<\/p>\n\n\n\n<p class=\"has-black-color has-cyan-bluish-gray-background-color has-text-color has-background has-medium-font-size\"><strong>CASE: HARRY VS. NICKERSON<\/strong><\/p>\n\n\n\n<p>N advertised in the newspaper to affect sale of his goods on a particular day at a particular place. H travelled a long distance to bid for the things. On arrival, he found that the sale was cancelled. He sued N for the breach of the contract. It was held that advertisement was merely expression of an intention and not an offer which could be accepted by travelling to the place of intended sale. <\/p>\n\n\n\n<p>An advertisement in a newspaper to sell certain goods is not an offer but it is an invitation to offer. &#8220;Such advertisements are offer to negotiate-offer to receive offer&#8221;. It is not the final expression of willingness by the advertiser, making him not bound by the terms of advertisement. The main purpose of the person who gives advertisement in the newspaper is to sell the certain article by inviting offers from the potential buyers and this does not constitute an offer.<\/p>\n\n\n\n<p>Display of goods with the prices marked on the, quotations, catalogues and railway time table and auction sales etc. are the examples of Invitation to an offer. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"offer-or-proposal-may-be-expressed-or-implied\"><span class=\"ez-toc-section\" id=\"Offer_or_proposal_may_be_expressed_or_implied\"><\/span><strong><em>Offer or proposal may be expressed or implied <\/em><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The offeror can make\nan offer through words or even by his conduct. <\/p>\n\n\n\n<p>An offer made by words spoken or written is called <strong>Express offer.<\/strong> <\/p>\n\n\n\n<p class=\"has-black-color has-cyan-bluish-gray-background-color has-text-color has-background has-medium-font-size\"><strong>EXAMPLE<\/strong><\/p>\n\n\n\n<p>X offers to sell his house to buy through a letter it is\nan Express offer<\/p>\n\n\n\n<p>When a person makes an offer through his conduct, it is known as <strong>Implied offer.<\/strong> <\/p>\n\n\n\n<p class=\"has-black-color has-cyan-bluish-gray-background-color has-text-color has-background has-medium-font-size\"><strong>EXAMPLE<\/strong><\/p>\n\n\n\n<p>Where a person goes to doctor for treatment, his conduct\nimplies an offer that if the treatment is given, the offeree will pay the usual\ncharges.\n<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"lapse-of-an-offer-or-proposal\"><span class=\"ez-toc-section\" id=\"Lapse_of_an_offer_or_proposal\"><\/span><strong><em>Lapse of an offer or proposal <\/em><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>An offer can be lapsed if<\/p>\n\n\n\n<ul><li>Offeree dies before acceptance.<\/li><\/ul>\n\n\n\n<ul><li>It is not accepted within time specified.<\/li><\/ul>\n\n\n\n<ul><li>Offeree does not make the valid acceptance. <\/li><\/ul>\n\n\n\n<ul><li>There is lapse by revocation. <\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"two-identical-cross-offers-do-not-make-a-contract\"><span class=\"ez-toc-section\" id=\"Two_identical_cross_offers_do_not_make_a_contract\"><\/span><strong><em>Two identical cross offers do not make a contract<\/em><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Where two parties\nmake identical offers to each other, in ignorance of each other&#8217;s offer, the\noffers are known as cross offers. Cross offers do not constitute acceptance of\none\u2019s offer by the others and as such there is no completed agreement. <\/p>\n\n\n\n<p class=\"has-black-color has-cyan-bluish-gray-background-color has-text-color has-background has-medium-font-size\"><strong>EXAMPLE<\/strong><\/p>\n\n\n\n<p>H wrote to T offering to sell him 800 tons of iron at \u20b9 69 per ton. On the same day T wrote to H offering to buy 800 tons at \u20b9 69. Their letters crossed in the post. T contended that there was a good contract. Held there was no contract. As it was a cross offer.<\/p>\n\n\n\n<!--nextpage-->\n\n\n<h2 class=\"wp-block-post-title\">OFFER AND ACCEPTANCE CONTRACT LAW NOTES<\/h2>\n\n\n<h2 class=\"wp-block-heading\" id=\"question-define-acceptance-explain-the-rules-of-valid-acceptance\">QUESTION: Define Acceptance? Explain the rules of valid acceptance.<\/h2>\n\n\n\n<p><strong>ANSWER:<\/strong><\/p>\n\n\n\n<p>Acceptance is an expression by the offeree of his consent to the offeror.<\/p>\n\n\n\n<p class=\"has-cyan-bluish-gray-background-color has-background has-medium-font-size\"><strong>According to Section 2(b) of <a href=\"https:\/\/commerceiets.com\/indian-contract-act-1872\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">Indian Contract Act, 1872<\/a><\/strong><\/p>\n\n\n\n<p class=\"has-black-color has-text-color\">&#8220;When the person to whom the proposal is made signifies his assent, it is an acceptance of the proposal and accepted proposal is called a promise or an agreement&#8221;.<\/p>\n\n\n\n<p class=\"has-black-color has-text-color\">Thus, when the offeree to whom the <a href=\"https:\/\/commerceiets.com\/offer-or-proposal-its-valid-essentials\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">proposal or offer<\/a> is made unconditionally accepts the offer it becomes a promise.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"619\" height=\"178\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/04\/final-offer-acceptance.png\" alt=\"ACCEPTANCE\" class=\"wp-image-161\" srcset=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/04\/final-offer-acceptance.png 619w, https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/04\/final-offer-acceptance-300x86.png 300w\" sizes=\"(max-width: 619px) 100vw, 619px\" \/><figcaption>OFFER AND ACCEPTANCE CONTRACT LAW NOTES<\/figcaption><\/figure>\n\n\n\n<p class=\"has-black-color has-text-color\">It is an expression\nof assent to the term of an offer.<\/p>\n\n\n\n<p class=\"has-cyan-bluish-gray-background-color has-background has-medium-font-size\"><strong>EXAMPLE<\/strong><\/p>\n\n\n\n<p class=\"has-black-color has-text-color\">An offers to sell his horse for rupees 500 to B. B accepts\nthe offer and purchase the horse for rupees 500. This is an acceptance.\n<\/p>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"who-may-accept\"><strong>WHO MAY ACCEPT?<\/strong><\/h3>\n\n\n\n<p class=\"has-black-color has-text-color\"><font color=\"#005000\" style=\"background-color: transparent;\">The offer must be accepted by the one to whom it is made.<\/font> It cannot be assigned to another or accepted by another without the consent of the person making it. <\/p>\n\n\n\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"498\" height=\"127\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/04\/Screenshot-2019-04-09-11.15.58.png\" alt=\"WHO MAY ACCEPT?\" class=\"wp-image-162\" srcset=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/04\/Screenshot-2019-04-09-11.15.58.png 498w, https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/04\/Screenshot-2019-04-09-11.15.58-300x77.png 300w\" sizes=\"(max-width: 498px) 100vw, 498px\" \/><figcaption>OFFER AND ACCEPTANCE CONTRACT LAW NOTES<br \/><\/figcaption><\/figure>\n\n\n\n<p>Acceptance may be express or implied. It may be expressed when it is communicated by the words spoken or written. Acceptance is said to be implied when it is understood from the circumstances of the case or from conduct of the parties.<\/p>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"valid-essentials-of-acceptance\"><strong>VALID ESSENTIALS OF ACCEPTANCE<\/strong><\/h3>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"1-acceptance-must-be-absolute-and-unconditional\"><strong>1. ACCEPTANCE MUST BE ABSOLUTE AND UNCONDITIONAL <\/strong><\/h3>\n\n\n\n<p class=\"has-black-color has-text-color\">Acceptance must be unconditional and absolute. There cannot be conditional acceptance that would amount to counter offer which nullifies the original offer. Even a minor or a material change in the terms of the offer vitiates the acceptance. An offer can be converted into promise if it is accepted unconditionally. <\/p>\n\n\n\n<p class=\"has-black-color has-cyan-bluish-gray-background-color has-text-color has-background has-medium-font-size\"><strong>CASE: JORDAN V. NORTON<\/strong><\/p>\n\n\n\n<p class=\"has-black-color has-text-color\">The Norton offered to buy Jordan\u2019s mare if he guaranteed\nthat the mare was \u2018quite in harness.\u2019 The Jordan wrote to the Norton that the\nmare was \u2018quite in double harness.\u2019 Held it was not acceptance.\n<\/p>\n\n\n\n<p class=\"has-black-color has-cyan-bluish-gray-background-color has-text-color has-background has-medium-font-size\"><strong>CASE: HYDE V. WRENCH<\/strong><\/p>\n\n\n\n<p class=\"has-black-color has-text-color\">The defendant (Wrench) offered to sell his farm to the plaintiff (Hyde) for $1,000. The plaintiff replied that he would pay you $950. This was refused by the defendant. After getting refusal, the plaintiff decided to purchase the farm for $1,000 and sent his assent to the defendant. The defendant refused to sell his farm for $1,000. The plaintiff sued him for specific performance of the contract. It was held that there was no contract between the parties as an offer to buy for $950 in response to the offer to sell for $ 1,000 was only to counter offer which amounted to the rejection of the original offer. The defendant is not bound to accept the contract.<\/p>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"2-acceptance-must-be-communicated-to-the-offeror\"><strong> 2. ACCEPTANCE MUST BE COMMUNICATED TO THE OFFEROR <\/strong><\/h3>\n\n\n\n<p class=\"has-black-color has-text-color\">A proposal becomes a contract when the acceptance of such proposal is communicated to the promisor. The communication of acceptance must occur in the prescribed form or any such form in the normal course of the business if no specific form has been prescribed. Additionally, the offeree must also be known about the offer before conveying his acceptance.<font color=\"#005000\" style=\"background-color: transparent;\"> It implies that the offeree<\/font> cannot communicate acceptance without the knowledge of the offer. <\/p>\n\n\n\n<p class=\"has-black-color has-text-color\">An acceptance can be communicated in any of the following modes by:<\/p>\n\n\n\n<ul class=\"has-black-color has-text-color\"><li>Words Spoken <\/li><li>Words Written<\/li><li>Conduct<\/li><li>Performance Of Conditions <\/li><li>Acceptance Of Contribution<\/li><\/ul>\n\n\n\n<p class=\"has-black-color has-cyan-bluish-gray-background-color has-text-color has-background has-medium-font-size\"><strong>CASE: BRODGEN VS. METROPOLITAN RAILWAY\nCOMPANY<\/strong><\/p>\n\n\n\n<p class=\"has-black-color has-text-color\">The manager of the company received a draught agreement concerning the supply of the coal. The manager wrote the word \u2018approved\u2019 and put the agreement in his drawer and forget all about it. It was held that there was no contract as another party was not communicated about acceptance.<\/p>\n\n\n\n<p class=\"has-black-color has-cyan-bluish-gray-background-color has-text-color has-background has-medium-font-size\"><strong>CASE: FELTHOUSE V. BINDLEY<\/strong><\/p>\n\n\n\n<p class=\"has-black-color has-text-color\">F offered to buy his nephew&#8217;s horse for $30-15s, adding, &#8220;If I hear no more, I shall consider the horse is mine at $30-15s&#8221;. The nephew did not reply, but told his auctioneer not to sell the horse, as it was sold to his uncle. But the auctioneer sold it by mistake to the third party. F sued him for conversion of his property. It was held that there was no communication of acceptance. mental Acceptance or uncommunicated assent does not result in a contract.<\/p>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"3-acceptance-must-be-according-to-the-prescribed-mode\"><strong>3. ACCEPTANCE MUST BE ACCORDING TO THE PRESCRIBED MODE <\/strong><\/h3>\n\n\n\n<p class=\"has-black-color has-text-color\">It is the legal rule of the acceptance that it must be accepted in the prescribed manner. If the offer is not accepted in the prescribed manner then the offeror has every right to reject the acceptance within reasonable time. <\/p>\n\n\n\n<p class=\"has-black-color has-text-color\"><strong>As per section 7 (2) of <a href=\"https:\/\/commerceiets.com\/indian-contract-act-1872\/\">Indian Contract Act, 1872<\/a><\/strong><\/p>\n\n\n\n<p class=\"has-black-color has-text-color\">\u201cIf the acceptance is not made in the manner describe the proposer may within a reasonable time, after the acceptance is communicated to him, insist that the acceptance must be made in the manner prescribed\u201d. <\/p>\n\n\n\n<p class=\"has-black-color has-text-color\"><strong>EXAMPLE<\/strong><\/p>\n\n\n\n<p class=\"has-black-color has-text-color\">X offers to sell 500 quintals of wheat for \u20b9 400 per quintal to Y. He required Y to send his\nacceptance by post. Y telephones to X accepting the offer. X may insist that\nacceptance should be sent by post. In such a case telephone conversation would\nnot create a contract. <\/p>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"4-acceptance-must-follow-the-contract-offer\"><strong>4. ACCEPTANCE MUST FOLLOW THE CONTRACT OFFER <\/strong><\/h3>\n\n\n\n<p class=\"has-black-color has-text-color\">Acceptance follows\noffer. If the acceptor is not aware of the existence of the offer and conveys his\nacceptance, no contract come into being. There must be knowledge of the offer\nbefore anyone could consent to it. An act done in ignorance of the offer cannot\nbe called an acceptance. <\/p>\n\n\n\n<p class=\"has-black-color has-cyan-bluish-gray-background-color has-text-color has-background\"><strong>CASE: LALMAN VERSUS SHUKLA VS GAURI DUTT<\/strong><\/p>\n\n\n\n<p class=\"has-black-color has-text-color\">The nephew of the defendant Gauri was missing. He sent\nhis servant Lalman to find him out. After the servant had left, he announced a\nreward of \u20b951 for anybody who would trace his\nnephew. The plaintiff traced the nephew before having knowledge of the reward\nannounced by the defendant. Subsequently, the plaintiff claimed the reward when\nhe came to know about it. <\/p>\n\n\n\n<p class=\"has-black-color has-text-color\">Held that plantiff could not recover the reward as the\noffer containing the reward was not communicated to him.<\/p>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"5-acceptance-must-be-made-within-a-reasonable-time\"><strong>5. ACCEPTANCE MUST BE MADE WITHIN A REASONABLE TIME<\/strong><\/h3>\n\n\n\n<p class=\"has-black-color has-text-color\">Sometimes the time\nlimit is fixed within which the acceptance is to be given. In such a case the\nacceptance must be given within the fixed time limit. In case no time limit is\nprescribed the acceptance should be given within a reasonable time. <\/p>\n\n\n\n<p class=\"has-black-color has-cyan-bluish-gray-background-color has-text-color has-background\"><strong>CASE: RAMSGATE VICTORIA HOTEL COMPANY\nLIMITED VS. MONTEFLORE<\/strong><\/p>\n\n\n\n<p class=\"has-black-color has-text-color\">M applied for shares in RV hotel company limited on 8 June.\nThe company did not write to him allotting the shares until 3rd November. When he\nwas informed that shares were allotted to him, he refused to accept the shares\nwhich led to dispute. It was held that day he was not bound to accept the shares\nas the acceptance to the offer has not been made within a reasonable time.\n<\/p>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"6-acceptance-may-be-expressed-or-implied\"><strong>6. ACCEPTANCE MAY BE EXPRESSED OR IMPLIED<\/strong><\/h3>\n\n\n\n<p class=\"has-black-color has-text-color\">An acceptance which\nis expressed by written or spoken words is called expressed acceptance. <\/p>\n\n\n\n<p class=\"has-black-color has-text-color has-medium-font-size\"><strong>EXAMPLE<\/strong><\/p>\n\n\n\n<p class=\"has-black-color has-text-color\">If Ravi residing at Jaipur offers to sell his car to Suri\nresiding at Delhi by writing a letter and Suri accepts the offer by writing a\nletter, the acceptance is said to be expressed. <\/p>\n\n\n\n<p class=\"has-black-color has-text-color\">The acceptance which\nis expressed by the conduct of the offeree is known as implied acceptance. <\/p>\n\n\n\n<p class=\"has-black-color has-text-color has-medium-font-size\"><strong>EXAMPLE<\/strong><\/p>\n\n\n\n<p class=\"has-black-color has-text-color\">At an auction sale of car, Mahesh is the highest bidder. The\nauctioneer accepts the bid by striking the hammer on the table. It is an\nimplied acceptance. Here the auctioneer conduct of striking the hammer on the\ntable shows that the auctioneer has accepted the highest bid.<\/p>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"7-silence-cannot-amount-to-acceptance\"><strong>7.<\/strong> <strong>SILENCE CANNOT AMOUNT TO ACCEPTANCE <\/strong><\/h3>\n\n\n\n<p class=\"has-black-color has-text-color\">No contract is formed\nif the offeree remain silent and does nothing to show that he has accepted the\noffer. <\/p>\n\n\n\n<p class=\"has-black-color has-text-color\">Generally speaking\nthe person to whom the proposal is made need not reply. His silence cannot be\nregarded as an acceptance of the proposal. Proposal made to another cannot\nripen into an agreement merely because the offeree makes no reply even though the\nproposal states that silence will be taken to amount to acceptance. So, mental\nacceptance is no acceptance. <\/p>\n\n\n\n<p class=\"has-black-color has-cyan-bluish-gray-background-color has-text-color has-background has-medium-font-size\"><strong>CASE: BROGDON VS. METROPOLITAN RAILWAY\nCOMPANY<\/strong><\/p>\n\n\n\n<p class=\"has-black-color has-text-color\">A draft agreement relating to the supply of coal was sent\nto the manager of a railway company for his acceptance. The manager wrote the\nword \u2018approved\u2019 on the agreement but by an oversight the document remained in\nhis drawer. Held there was no contract as it was only mentally accepted and\nthere was no expression of his mental determination.<\/p>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"8-acceptance-must-be-given-before-lapse-of-an-offer\"><strong>8.ACCEPTANCE MUST BE GIVEN BEFORE LAPSE OF AN OFFER <\/strong><\/h3>\n\n\n\n<p class=\"has-black-color has-text-color\">A valid contract can\narise only when the acceptance is made before the offer has lapsed or being\nwithdrawn. An acceptance which is made after the withdrawal of the offer is\ninvalid and does not create any legal relationship. <\/p>\n\n\n\n<p class=\"has-black-color has-text-color has-medium-font-size\"><strong>EXAMPLE<\/strong><\/p>\n\n\n\n<p class=\"has-black-color has-text-color\">Amar offered by a letter to sell his horse to Akbar for\nrupees 2500. Subsequently, Amar withdraw his offer by a telegram which was also\nreceived by the Akbar. After reciept of this telegram, Akbar accepted the offer\nby a letter and posted the same. In this case, the acceptance is invalid as it\nwas made after the effective withdrawal of the offer.\n<\/p>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"9-it-may-be-given-by-performing-conditions-or-receiving-consideration\"><strong>9. IT MAY BE GIVEN BY PERFORMING CONDITIONS OR RECEIVING CONSIDERATION <\/strong><\/h3>\n\n\n\n<p class=\"has-black-color has-text-color\">An offer may be\naccepted by performing an act which is a condition in the proposal or it may be\nthat the consideration is received for a reciprocal promise which may be\noffered with the proposal. <\/p>\n\n\n\n<p class=\"has-black-color has-cyan-bluish-gray-background-color has-text-color has-background has-medium-font-size\"><strong>CASE: V RAO VS. A RAO<\/strong><\/p>\n\n\n\n<p class=\"has-black-color has-text-color\">The lady invited her niece to stay with her in the same\nhouse and promised her to settle on her an immovable property. The niece stayed\nwith her till the time of her death. It was held that niece had performed the\ncondition of staying with the lady so she was entitled to the property.\n<\/p>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"10-acceptance-must-be-made-by-the-person-to-whom-the-proposal-is-made\"><strong>10. ACCEPTANCE MUST BE MADE BY THE PERSON TO WHOM THE PROPOSAL IS MADE<\/strong><\/h3>\n\n\n\n<p class=\"has-black-color has-text-color\">Acceptance can only\nbe given by the person to whom the offer is made. In case of specific offer,\nthe acceptance must be made by the person to whom the offer is made. While in\ncase of general offer, it may be accepted by anyone. <\/p>\n\n\n\n<p class=\"has-black-color has-cyan-bluish-gray-background-color has-text-color has-background\"><strong>CASE: POWELL V. LEE<\/strong><\/p>\n\n\n\n<p class=\"has-black-color has-text-color\">The plaintiff (Powell) applied for the post of headmaster of school. The board of managers of a school passed a resolution appointing him. they did not communicate their resolution to him, but one of the managers in his individual capacity informed the plaintiff about his appointment as headmaster. later the matter was reopened, and Parker, another candidate, who had originally been rejected, was appointed in plaintiff&#8217;s place. Powell, the plaintiff thereupon sued the defendant Lee, the chairman of the board of manager for breach of contract. it was held that there was no contract between the parties because acceptance was not communicated to the plaintiff by an authorised person.<\/p>\n\n\n\n<p class=\"has-black-color has-text-color\">Thus, acceptance is the manifestations of the assent of the person to whom the offer is made to the terms of offer, and a binding promise comes into existence only when the terms of an offer are accepted.<\/p>\n\n\n\n<!--nextpage-->\n\n\n<h2 class=\"wp-block-post-title\">OFFER AND ACCEPTANCE CONTRACT LAW NOTES<\/h2>\n\n\n<h2 class=\"has-text-align-left wp-block-heading\" id=\"question-a-mere-mental-assent-not-evidenced-by-the-words-or-conduct-does-not-constitute-acceptance-comment\"><strong>QUESTION: \u201cA mere mental assent not evidenced by the words or conduct does not constitute acceptance.\u201d Comment.<\/strong><\/h2>\n\n\n\n<p class=\"has-black-color has-text-color\">It is true that mere mental assent evidenced by the words or conduct does not constitute the acceptance. Acceptance is the expression of the assent to the terms of an offer being offered by the offeror.<\/p>\n\n\n\n<p class=\"has-black-color has-text-color\">According to Section 2 (b) of the Indian Contract Act, 1872:<\/p>\n\n\n\n<p class=\"has-black-color has-text-color\">\u201cWhen the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted. A proposal, when accepted, becomes a promise.\u201d<\/p>\n\n\n\n<p class=\"has-black-color has-text-color\">A proposal becomes a contract when the acceptance of such proposal is communicated to the promisor. The communication of acceptance must occur in the prescribed form or any such form in the normal course of the business if no specific form has been prescribed. Additionally, the offeree must also be known about the offer before conveying his acceptance.&nbsp;It implies that the offeree&nbsp;cannot communicate acceptance without the knowledge of the offer.<\/p>\n\n\n\n<p class=\"has-black-color has-text-color\">An acceptance can be communicated in any of the following modes by:<\/p>\n\n\n\n<ul class=\"has-black-color has-text-color\"><li>Words Spoken<\/li><li>Words Written<\/li><li>Conduct<\/li><li>Performance Of Conditions<\/li><li>Acceptance Of Contribution<\/li><\/ul>\n\n\n\n<p class=\"has-black-color has-grey-background-color has-text-color has-background has-regular-font-size\"><strong>CASE: BRODGEN VS. METROPOLITAN RAILWAY COMPANY<\/strong><\/p>\n\n\n\n<p class=\"has-black-color has-text-color\">The manager of the company received a draught agreement concerning the supply of the coal. The manager wrote the word \u2018approved\u2019 and put the agreement in his drawer and forget all about it. It was held that there was no contract as another party was not communicated about acceptance.<\/p>\n\n\n\n<p class=\"has-black-color has-text-color\"><strong>COMMUNICATION OF ACCEPTANCE<\/strong><\/p>\n\n\n\n<p class=\"has-black-color has-text-color\">The communication of the acceptance must be completed by both the parties to the contract i.e. as against the offeror and offeree both.<\/p>\n\n\n\n<p class=\"has-black-color has-text-color\"><strong>According to Section 4 (2) of the Indian Contract Act, 1872:<\/strong><\/p>\n\n\n\n<p class=\"has-black-color has-text-color\">\u201cThe communication of an acceptance is complete as against the proposer, when it is put in a course of transmission to him, so as to be out of the power of the acceptor to withdraw the same and as against the acceptor, when it comes to the knowledge of the proposer.\u201d<\/p>\n\n\n\n<p class=\"has-black-color has-text-color\">The rules of communication of acceptance are as follows:<\/p>\n\n\n\n<p class=\"has-black-color has-text-color\"><strong>AS AGAINST THE OFFEROR: <\/strong>The communication of acceptance as against the offeror is complete when the acceptance is put in a course of transmission to offeror by the offeree. It imply that the offeree lose the power to withdraw his acceptance. If the acceptance is posted by the letter, then the acceptance is completed as the letter is posted and offeree is not in the position to stop its transmission. If the acceptance is made by the telegram, then the acceptance is completed as the telegram is posted or booked.<\/p>\n\n\n\n<p class=\"has-black-color has-grey-background-color has-text-color has-background has-regular-font-size\"><strong>CASE: HOUSEHOLD FIRE INSURANCE CO. VS. GRANT (1879)<\/strong><strong><\/strong><\/p>\n\n\n\n<p class=\"has-black-color has-text-color\">Grant made an offer to purchase the shares of the plaintiff company by the letter sent through the post. The company accepted the application and letter of allotment of shares was posted to the Grant. The letter has not reached the Grant. But as it was sent by the company, the acceptance is said to be communicated as against at the offeree. Held, Grant is liable to pay the amount of allotment due for the shares.<\/p>\n\n\n\n<p class=\"has-black-color has-text-color\"><strong>AS AGAINST THE OFFEREE: <\/strong>The communication of acceptance is complete as against the offeree is complete when the acceptance of the proposal or offer comes into the knowledge of the offeror. The communication of the acceptance is binding on the offeree when the letter or telegram posted reaches the offeror. It means the offeree cannot revoke his acceptance then. In case he wants to revoke the acceptance, then the letter of revocation must be received earlier than letter of acceptance by the offeror.<\/p>\n\n\n\n<p class=\"has-black-color has-text-color\">Example: Mr. A offers to sell his car to Mr. B for $25000. Mr. B accepts the offer and sent his acceptance by post on January 20. The letter of acceptance is received by Mr. A on January 25. Mr. B is bound by his acceptance on January 25 when the letter of acceptance is received by the Mr. A. &nbsp;<\/p>\n\n\n\n<p class=\"has-black-color has-grey-background-color has-text-color has-background has-regular-font-size\"><strong>CASE: FELTHOUSE V. BINDLEY<\/strong><\/p>\n\n\n\n<p class=\"has-black-color has-text-color\">F offered to buy his nephew\u2019s horse for $30-15s, adding, \u201cIf I hear no more, I shall consider the horse is mine at $30-15s\u201d. The nephew did not reply, but told his auctioneer not to sell the horse, as it was sold to his uncle. But the auctioneer sold it by mistake to the third party. F sued him for conversion of his property. It was held that there was no communication of acceptance. Mental Acceptance or non-communicated assent does not result in a contract.<\/p>\n\n\n\n<p class=\"has-black-color has-text-color\"><strong>EXCEPTIONS TO THIS RULE<\/strong><\/p>\n\n\n\n<p class=\"has-black-color has-text-color\">There are also some exceptions to this rule where the silence or mere mental acceptance amounts to the final acceptance. The exceptions are as follows:<\/p>\n\n\n\n<ol type=\"1\" class=\"has-black-color has-text-color\"><li>Where the offeree has the sufficient opportunity to reject the offer but he makes or continues to make the use of the goods offered to him.<\/li><\/ol>\n\n\n\n<p class=\"has-black-color has-grey-background-color has-text-color has-background has-regular-font-size\"><strong>CASE: KASHI PRASAD V. SAJJADS BEGAM (1940)<\/strong><strong><\/strong><\/p>\n\n\n\n<p class=\"has-black-color has-text-color\">The landlord served the notice on the tenant regarding the rise in the rent of the building or premises rented to him. The tenant without conveying any intention to stay more or not, continues to occupy the premises. Held, the silence of the tenant amounts to the acceptance of the rise in the rental charges. So, the tenant has to pay the rent in future at the increased prices.<\/p>\n\n\n\n<ul class=\"has-black-color has-text-color\"><li>Where on the basis of the previous dealings or conduct, the offeror has the sufficient grounds to make believe that when the offeree remains silent, it amounts to the acceptance.<\/li><li>If there is fiduciary relationship among the parties i.e. the relationship of utmost good faith and they are under the duty to speak, then mere silence on their part amounts equivalent to the speech. Fiduciary relations usually exist between the sisters, brothers, husband-wife, mother and father, son and daughter etc.<\/li><\/ul>\n\n\n\n<p class=\"has-black-color has-text-color\" style=\"font-size:-1px\"><strong>CONCLUSION<\/strong><\/p>\n\n\n\n<p class=\"has-black-color has-text-color\">So, it is clear that the acceptance must be communicated by the words of mouth, in writing or by conduct. A mere mental acceptance is no acceptance. There must be some external mode or action that the law recognizes. So an agreement cannot result out of the mere mental assent, an intention to accept or mental resolve.&nbsp;<\/p>\n\n\n\n<!--nextpage-->\n\n\n<h2 class=\"wp-block-post-title\">OFFER AND ACCEPTANCE CONTRACT LAW NOTES<\/h2>\n\n\n<h2 class=\"wp-block-heading\" id=\"question-discuss-rules-regarding-offer-acceptance-and-revocation-with-examples\">QUESTION: Discuss rules regarding offer, acceptance and revocation with examples?<\/h2>\n\n\n\n<p><strong>ANSWER:<\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"rules-regarding-offer\">RULES REGARDING OFFER<\/h3>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"offer-or-proposal-must-be-capable-of-creating-legal-relationship\"><strong><em>Offer or proposal must be capable of creating legal relationship <\/em><\/strong><\/h3>\n\n\n\n<p>If the offer does not intend to give rise to the legal consequences, it is not a valid offer in the eyes of the law. The social offers or social engagements does not become a valid contract.<\/p>\n\n\n\n<p class=\"has-black-color has-cyan-bluish-gray-background-color has-text-color has-background has-medium-font-size\"><strong>CASE: BALFOUR VS<em>. <\/em>BALFOUR<\/strong><\/p>\n\n\n\n<p>A husband was serving in the Ceylon. He promised orally to his wife, who was living in England, to pay an allowance of $30 per month to her. The husband did not pay the money and the wife filed suit against the husband. It was held that the agreement between them was just a family arrangement and they never intend to create legal relationship. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"offer-or-proposal-must-be-definite-and-certain\"><strong><em>Offer or proposal must be definite and certain <\/em><\/strong><\/h3>\n\n\n\n<p>An offer must be definite and certain. An indefinite or vague offer cannot be accepted as the courts in such cases cannot tell what the parties are to do. The intention of the party must be very clear as to what they intend to do.<\/p>\n\n\n\n<p class=\"has-black-color has-cyan-bluish-gray-background-color has-text-color has-background has-medium-font-size\"><strong>CASE:\nTAYLOR VS. PORTINGTON<\/strong><\/p>\n\n\n\n<p>A agreed to take 2\nhouses on rent for 3 years at the rent of $85 per annum provided the house was\nput into thorough repair and the drawing rooms were decorated according to the \u201cPresent\nStyle\u201d. <\/p>\n\n\n\n<p>\u201cPresent Style\u201d is a vague term as this term would have different meanings to different parties. <\/p>\n\n\n\n<p>Thus, the agreement was declared void as the terms of offer were vague and uncertain.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"an-offer-or-a-proposal-must-be-communicated-to-the-offeree\"><strong><em>An offer or a proposal must be communicated to the offeree <\/em><\/strong><\/h3>\n\n\n\n<p>An offer must be communicated to the person to whom the same is addressed. Communication of offer is important to conclude an agreement because acceptance can be given only if one knows about the offer. This rule applies to both \u2018specific\u2019 and \u2018general\u2019 offer. <\/p>\n\n\n\n<p>An offer made to a definite person or body of persons is called <strong>specific offer<\/strong>. It must be accepted by that specific person or party only. <\/p>\n\n\n\n<p>The offer made to the public as a whole is called <strong>general offer. <\/strong>It can be accepted by anyone from the public.<\/p>\n\n\n\n<p><strong>Section 4 of the Indian Contract Act, 1872<\/strong> states that communication of an object is complete when it comes to the knowledge of the person to whom it is made. <\/p>\n\n\n\n<p class=\"has-black-color has-cyan-bluish-gray-background-color has-text-color has-background has-medium-font-size\"><strong>CASE: LALMAN SHUKLA VS. GAURI DUTT<\/strong><\/p>\n\n\n\n<p>The nephew of the defendant Gauri was missing. He sent\nhis servant Lalman to find him out. After the servant had left, he announced a\nreward of \u20b951 for anybody who would trace his\nnephew. The plaintiff traced the nephew before having knowledge of the reward\nannounced by the defendant. Subsequently, the plaintiff claimed the reward when\nhe came to know about it. <\/p>\n\n\n\n<p>Held that plantiff could not recover the reward as the\noffer containing the reward was not communicated to him.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"offer-or-proposal-must-be-made-with-a-view-to-obtaining-the-assent-of-the-other-party\"><strong><em>Offer or proposal must be made with a view to obtaining the assent of the other party <\/em><\/strong><\/h3>\n\n\n\n<p>The offer must be made with an intention to obtain the assent of the other party. The offer made as a prank or a joke is not a valid offer and therefore if accepted, it cannot amount to a valid contract. <\/p>\n\n\n\n<p class=\"has-black-color has-cyan-bluish-gray-background-color has-text-color has-background has-medium-font-size\"><strong>EXAMPLE<\/strong><\/p>\n\n\n\n<p>If B jokingly offers M to sell his scooter at \u20b910 and M knowing that B is not serious, accepts the offer, such acceptance does not hold any value as the offer made jokingly is not valid. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"an-offer-or-a-proposal-may-be-conditional\"><strong><em>An offer or a proposal may be conditional <\/em><\/strong><\/h3>\n\n\n\n<p>An offer can be made subject\nto the condition. In that, it can be accepted only subject to that condition. If\nthe conditions are clearly expressed or written and these have been made known\nto the offeree, then he is bound to fulfill these conditions. Conditional offer\nlapses when the conditions are not fulfilled. <\/p>\n\n\n\n<p class=\"has-black-color has-cyan-bluish-gray-background-color has-text-color has-background has-medium-font-size\"><strong>CASE: THOMPSON V. L M. AND S. RAILWAY\n1930<\/strong><\/p>\n\n\n\n<p>T, who could not read, took an excursion ticket on the railway. On the front of the ticket was printed \u201cfor conditions see back\u2019. One of the conditions was that the railway company would not be liable for personal injuries to the passengers. T was injured by a railway accident. Held T was bound by the conditions and could not recover any damages. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"an-offer-or-a-proposal-should-not-contain-such-term-the-non-compliance-of-which-would-amount-to-acceptance\"><strong><em>An offer or a proposal should not contain such term the non compliance of which would amount to acceptance. <\/em><\/strong><\/h3>\n\n\n\n<p>The offeror cannot\nsay that if the offeree does not communicate acceptance by a certain time, the\noffer would have been deemed to be accepted. The burden of the communication of\nrejection of offer cannot be imposed on the offeree. if offeree sent no reply,\nthere is no contract. <\/p>\n\n\n\n<p class=\"has-black-color has-cyan-bluish-gray-background-color has-text-color has-background has-medium-font-size\"><strong>EXAMPLE<\/strong><\/p>\n\n\n\n<p>A writes to B \u201cI offer to sell my house for \u20b9 40,000. If I do not receive a reply by Monday next, I shall assume that you have accepted the offer\u201d. There will be no contract if B does not reply. <\/p>\n\n\n\n<figure class=\"wp-block-image size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2022\/02\/images-48.jpg\" alt=\"\" class=\"wp-image-5297\" width=\"280\" height=\"180\"\/><figcaption>OFFER AND ACCEPTANCE CONTRACT LAW NOTES<\/figcaption><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"an-offer-or-a-proposal-must-be-distinguished-from-declaration-of-intention\"><strong><em>An offer or a proposal must be distinguished from declaration of intention <\/em><\/strong><\/h3>\n\n\n\n<p>A mere statement of\nintention is only an intention to give an offer. It only states that offer will\nbe made in future. The acceptance of statement of intention does not constitute\na contract. Whether a particular statement is offer or mere a statement of\nintention depends upon the circumstances of the case. <\/p>\n\n\n\n<p class=\"has-black-color has-cyan-bluish-gray-background-color has-text-color has-background has-medium-font-size\"><strong>CASE: FARINA VS. FICKUS<\/strong><\/p>\n\n\n\n<p>A father brought to his would-be son-in-law that his\ndaughter would have a share of what he would leave, after the death of his\nwife. It was held that letter contains a statement of intention only.\n<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"an-invitation-to-offer-is-not-an-offer\"><strong><em>An invitation to offer&nbsp;is not an offer <\/em><\/strong><\/h3>\n\n\n\n<p>An offer must be\ndistinguished from \u201cInvitation to an Offer.\u201d The offer should express his\nwillingness to do or abstain from doing something. But where a party proposes\ncertain terms on which he is willing to negotiate, he is not making an offer\nbut only inviting others to make an offer on those terms.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"offer-or-proposal-may-be-expressed-or-implied\"><strong><em>Offer or proposal may be expressed or implied <\/em><\/strong><\/h3>\n\n\n\n<p>The offeror can make\nan offer through words or even by his conduct. <\/p>\n\n\n\n<p>An offer made by words spoken or written is called <strong>Express offer.<\/strong> <\/p>\n\n\n\n<p class=\"has-black-color has-cyan-bluish-gray-background-color has-text-color has-background has-medium-font-size\"><strong>EXAMPLE<\/strong><\/p>\n\n\n\n<p>X offers to sell his house to buy through a letter it is\nan Express offer<\/p>\n\n\n\n<p>When a person makes an offer through his conduct, it is known as <strong>Implied offer.<\/strong> <\/p>\n\n\n\n<p class=\"has-black-color has-cyan-bluish-gray-background-color has-text-color has-background has-medium-font-size\"><strong>EXAMPLE<\/strong><\/p>\n\n\n\n<p>Where a person goes to doctor for treatment, his conduct\nimplies an offer that if the treatment is given, the offeree will pay the usual\ncharges.\n<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"lapse-of-an-offer-or-proposal\"><strong><em>Lapse of an offer or proposal <\/em><\/strong><\/h3>\n\n\n\n<p>An offer can be lapsed if<\/p>\n\n\n\n<ul><li>Offeree dies before acceptance.<\/li><\/ul>\n\n\n\n<ul><li>It is not accepted within time specified.<\/li><\/ul>\n\n\n\n<ul><li>Offeree does not make the valid acceptance. <\/li><\/ul>\n\n\n\n<ul><li>There is lapse by revocation. <\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"two-identical-cross-offers-do-not-make-a-contract\"><strong><em>Two identical cross offers do not make a contract<\/em><\/strong><\/h3>\n\n\n\n<p>Where two parties\nmake identical offers to each other, in ignorance of each other&#8217;s offer, the\noffers are known as cross offers. Cross offers do not constitute acceptance of\none\u2019s offer by the others and as such there is no completed agreement. <\/p>\n\n\n\n<p class=\"has-black-color has-cyan-bluish-gray-background-color has-text-color has-background has-medium-font-size\"><strong>EXAMPLE<\/strong><\/p>\n\n\n\n<p>H wrote to T offering to sell him 800 tons of iron at \u20b9 69 per ton. On the same day T wrote to H offering to buy 800 tons at \u20b9 69. Their letters crossed in the post. T contended that there was a good contract. Held there was no contract. As it was a cross offer.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"rules-regarding-acceptance\">RULES REGARDING ACCEPTANCE<\/h3>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"1-acceptance-must-be-absolute-and-unconditional\"><strong>1. ACCEPTANCE MUST BE ABSOLUTE AND UNCONDITIONAL <\/strong><\/h3>\n\n\n\n<p class=\"has-black-color has-text-color\">Acceptance must be unconditional and absolute. There cannot be conditional acceptance that would amount to counter offer which nullifies the original offer. Even a minor or a material change in the terms of the offer vitiates the acceptance. An offer can be converted into promise if it is accepted unconditionally. <\/p>\n\n\n\n<p class=\"has-black-color has-cyan-bluish-gray-background-color has-text-color has-background has-medium-font-size\"><strong>CASE: JORDAN V. NORTON<\/strong><\/p>\n\n\n\n<p class=\"has-black-color has-text-color\">The Norton offered to buy Jordan\u2019s mare if he guaranteed\nthat the mare was \u2018quite in harness.\u2019 The Jordan wrote to the Norton that the\nmare was \u2018quite in double harness.\u2019 Held it was not acceptance.\n<\/p>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"2-acceptance-must-be-communicated-to-the-offeror\"><strong> 2. ACCEPTANCE MUST BE COMMUNICATED TO THE OFFEROR <\/strong><\/h3>\n\n\n\n<p class=\"has-black-color has-text-color\">A proposal becomes a contract when the acceptance of such proposal is communicated to the promisor. The communication of acceptance must occur in the prescribed form or any such form in the normal course of the business if no specific form has been prescribed. Additionally, the offeree must also be known about the offer before conveying his acceptance.<font color=\"#005000\" style=\"background-color: transparent;\"> It implies that the offeree<\/font> cannot communicate acceptance without the knowledge of the offer. <\/p>\n\n\n\n<p class=\"has-black-color has-text-color\">An acceptance can be communicated in any of the following modes by:<\/p>\n\n\n\n<ul class=\"has-black-color has-text-color\"><li>Words Spoken <\/li><li>Words Written<\/li><li>Conduct<\/li><li>Performance Of Conditions <\/li><li>Acceptance Of Contribution<\/li><\/ul>\n\n\n\n<p class=\"has-black-color has-cyan-bluish-gray-background-color has-text-color has-background has-medium-font-size\"><strong>CASE: BRODGEN VS. METROPOLITAN RAILWAY\nCOMPANY<\/strong><\/p>\n\n\n\n<p class=\"has-black-color has-text-color\">The manager of the company received a draught agreement concerning the supply of the coal. The manager wrote the word \u2018approved\u2019 and put the agreement in his drawer and forget all about it. It was held that there was no contract as another party was not communicated about acceptance.<\/p>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"3-acceptance-must-be-according-to-the-prescribed-mode\"><strong>3. ACCEPTANCE MUST BE ACCORDING TO THE PRESCRIBED MODE <\/strong><\/h3>\n\n\n\n<p class=\"has-black-color has-text-color\">It is the legal rule of the acceptance that it must be accepted in the prescribed manner. If the offer is not accepted in the prescribed manner then the offeror has every right to reject the acceptance within reasonable time. <\/p>\n\n\n\n<p class=\"has-black-color has-text-color\"><strong>As per section 7 (2) of <a href=\"https:\/\/commerceiets.com\/indian-contract-act-1872\/\">Indian Contract Act, 1872<\/a><\/strong><\/p>\n\n\n\n<p class=\"has-black-color has-text-color\">\u201cIf the acceptance is not made in the manner describe the proposer may within a reasonable time, after the acceptance is communicated to him, insist that the acceptance must be made in the manner prescribed\u201d. <\/p>\n\n\n\n<p class=\"has-black-color has-text-color\"><strong>EXAMPLE<\/strong><\/p>\n\n\n\n<p class=\"has-black-color has-text-color\">X offers to sell 500 quintals of wheat for \u20b9 400 per quintal to Y. He required Y to send his\nacceptance by post. Y telephones to X accepting the offer. X may insist that\nacceptance should be sent by post. In such a case telephone conversation would\nnot create a contract. <\/p>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"4-acceptance-must-follow-the-contract-offer\"><strong>4. ACCEPTANCE MUST FOLLOW THE CONTRACT OFFER <\/strong><\/h3>\n\n\n\n<p class=\"has-black-color has-text-color\">Acceptance follows\noffer. If the acceptor is not aware of the existence of the offer and conveys his\nacceptance, no contract come into being. There must be knowledge of the offer\nbefore anyone could consent to it. An act done in ignorance of the offer cannot\nbe called an acceptance. <\/p>\n\n\n\n<p class=\"has-black-color has-cyan-bluish-gray-background-color has-text-color has-background\"><strong>CASE: LALMAN VERSUS SHUKLA VS GAURI DUTT<\/strong><\/p>\n\n\n\n<p class=\"has-black-color has-text-color\">The nephew of the defendant Gauri was missing. He sent\nhis servant Lalman to find him out. After the servant had left, he announced a\nreward of \u20b951 for anybody who would trace his\nnephew. The plaintiff traced the nephew before having knowledge of the reward\nannounced by the defendant. Subsequently, the plaintiff claimed the reward when\nhe came to know about it. <\/p>\n\n\n\n<p class=\"has-black-color has-text-color\">Held that plantiff could not recover the reward as the\noffer containing the reward was not communicated to him.<\/p>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"5-acceptance-must-be-made-within-a-reasonable-time\"><strong>5. ACCEPTANCE MUST BE MADE WITHIN A REASONABLE TIME<\/strong><\/h3>\n\n\n\n<p class=\"has-black-color has-text-color\">Sometimes the time\nlimit is fixed within which the acceptance is to be given. In such a case the\nacceptance must be given within the fixed time limit. In case no time limit is\nprescribed the acceptance should be given within a reasonable time. <\/p>\n\n\n\n<p class=\"has-black-color has-cyan-bluish-gray-background-color has-text-color has-background\"><strong>CASE: RAMSGATE VICTORIA HOTEL COMPANY\nLIMITED VS. MONTEFLORE<\/strong><\/p>\n\n\n\n<p class=\"has-black-color has-text-color\">M applied for shares in RV hotel company limited on 8 June.\nThe company did not write to him allotting the shares until 3rd November. When he\nwas informed that shares were allotted to him, he refused to accept the shares\nwhich led to dispute. It was held that day he was not bound to accept the shares\nas the acceptance to the offer has not been made within a reasonable time.\n<\/p>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"6-acceptance-may-be-expressed-or-implied\"><strong>6. ACCEPTANCE MAY BE EXPRESSED OR IMPLIED<\/strong><\/h3>\n\n\n\n<p class=\"has-black-color has-text-color\">An acceptance which\nis expressed by written or spoken words is called expressed acceptance. <\/p>\n\n\n\n<p class=\"has-black-color has-text-color has-medium-font-size\"><strong>EXAMPLE<\/strong><\/p>\n\n\n\n<p class=\"has-black-color has-text-color\">If Ravi residing at Jaipur offers to sell his car to Suri\nresiding at Delhi by writing a letter and Suri accepts the offer by writing a\nletter, the acceptance is said to be expressed. <\/p>\n\n\n\n<p class=\"has-black-color has-text-color\">The acceptance which\nis expressed by the conduct of the offeree is known as implied acceptance. <\/p>\n\n\n\n<p class=\"has-black-color has-text-color has-medium-font-size\"><strong>EXAMPLE<\/strong><\/p>\n\n\n\n<p class=\"has-black-color has-text-color\">At an auction sale of car, Mahesh is the highest bidder. The\nauctioneer accepts the bid by striking the hammer on the table. It is an\nimplied acceptance. Here the auctioneer conduct of striking the hammer on the\ntable shows that the auctioneer has accepted the highest bid.<\/p>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"7-silence-cannot-amount-to-acceptance\"><strong>7.<\/strong> <strong>SILENCE CANNOT AMOUNT TO ACCEPTANCE <\/strong><\/h3>\n\n\n\n<p class=\"has-black-color has-text-color\">No contract is formed\nif the offeree remain silent and does nothing to show that he has accepted the\noffer. <\/p>\n\n\n\n<p class=\"has-black-color has-text-color\">Generally speaking\nthe person to whom the proposal is made need not reply. His silence cannot be\nregarded as an acceptance of the proposal. Proposal made to another cannot\nripen into an agreement merely because the offeree makes no reply even though the\nproposal states that silence will be taken to amount to acceptance. So, mental\nacceptance is no acceptance. <\/p>\n\n\n\n<p class=\"has-black-color has-cyan-bluish-gray-background-color has-text-color has-background has-medium-font-size\"><strong>CASE: BROGDON VS. METROPOLITAN RAILWAY\nCOMPANY<\/strong><\/p>\n\n\n\n<p class=\"has-black-color has-text-color\">A draft agreement relating to the supply of coal was sent\nto the manager of a railway company for his acceptance. The manager wrote the\nword \u2018approved\u2019 on the agreement but by an oversight the document remained in\nhis drawer. Held there was no contract as it was only mentally accepted and\nthere was no expression of his mental determination.<\/p>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"8-acceptance-must-be-given-before-lapse-of-an-offer\"><strong>8.ACCEPTANCE MUST BE GIVEN BEFORE LAPSE OF AN OFFER <\/strong><\/h3>\n\n\n\n<p class=\"has-black-color has-text-color\">A valid contract can\narise only when the acceptance is made before the offer has lapsed or being\nwithdrawn. An acceptance which is made after the withdrawal of the offer is\ninvalid and does not create any legal relationship. <\/p>\n\n\n\n<p class=\"has-black-color has-text-color has-medium-font-size\"><strong>EXAMPLE<\/strong><\/p>\n\n\n\n<p class=\"has-black-color has-text-color\">Amar offered by a letter to sell his horse to Akbar for\nrupees 2500. Subsequently, Amar withdraw his offer by a telegram which was also\nreceived by the Akbar. After reciept of this telegram, Akbar accepted the offer\nby a letter and posted the same. In this case, the acceptance is invalid as it\nwas made after the effective withdrawal of the offer.\n<\/p>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"9-it-may-be-given-by-performing-conditions-or-receiving-consideration\"><strong>9. IT MAY BE GIVEN BY PERFORMING CONDITIONS OR RECEIVING CONSIDERATION <\/strong><\/h3>\n\n\n\n<p class=\"has-black-color has-text-color\">An offer may be\naccepted by performing an act which is a condition in the proposal or it may be\nthat the consideration is received for a reciprocal promise which may be\noffered with the proposal. <\/p>\n\n\n\n<p class=\"has-black-color has-cyan-bluish-gray-background-color has-text-color has-background has-medium-font-size\"><strong>CASE: V RAO VS. A RAO<\/strong><\/p>\n\n\n\n<p class=\"has-black-color has-text-color\">The lady invited her niece to stay with her in the same\nhouse and promised her to settle on her an immovable property. The niece stayed\nwith her till the time of her death. It was held that niece had performed the\ncondition of staying with the lady so she was entitled to the property.\n<\/p>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"10-acceptance-must-be-made-by-the-person-to-whom-the-proposal-is-made\"><strong>10. ACCEPTANCE MUST BE MADE BY THE PERSON TO WHOM THE PROPOSAL IS MADE<\/strong><\/h3>\n\n\n\n<p class=\"has-black-color has-text-color\">Acceptance can only be given by the person to whom the offer is made. In case of specific offer, the acceptance must be made by the person to whom the offer is made. While in case of general offer, it may be accepted by anyone. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"revocation-of-offer-and-acceptance\">REVOCATION OF OFFER AND ACCEPTANCE<\/h3>\n\n\n\n<p>The <a aria-label=\"Indian Contract Act (opens in a new tab)\" href=\"https:\/\/commerceiets.com\/indian-contract-act-1872\/\" target=\"_blank\" rel=\"noreferrer noopener\">Indian Contract Act<\/a> lays out the rules of revocation of an offer and acceptance in<strong> Section 5<\/strong>. <\/p>\n\n\n\n<p>It says the offer may be revoked anytime before the communication of the acceptance is complete against the proposer\/offeror. Once the acceptance is communicated to the proposer, revocation of the offer is now not possible.<\/p>\n\n\n\n<p><strong>ACCORDING TO SECTION 5 OF THE CONTRACT ACT <\/strong><\/p>\n\n\n\n<p>&#8220;A\nproposal may be revoked at any time before the communication of its acceptance\nis complete as against the proposer, but not afterwards.&#8221;<\/p>\n\n\n\n<p>Hence, an\noffer can be revoked at any time before the letter of acceptance has been\nposted. <\/p>\n\n\n\n<p><strong>For example,<\/strong> A\noffers by letter to sell his car to B at a certain price. A may revoke his\noffer at any time before B posts his letter of acceptance, but not afterwards.\nOnce the letter of acceptance has been posted, the offer cannot be revoked.\nTherefore, when the offeror wishes to revoke his offer, he must do so by a\nspeedier mode of communication so that the revocation notice reaches the\nofferee before he posts his letter of acceptance. <\/p>\n\n\n\n<p>Revocation\nmust always be expressed and move from the offeror himself or a duly authorized\nagent. Notice of revocation of a &#8216;general offer&#8217; must be given through the same\nchannel by which the original offer was made.<\/p>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"constituents-of-revocation-of-offer\"><strong>CONSTITUENTS\nOF REVOCATION OF OFFER<\/strong><\/h3>\n\n\n\n<p>The main criteria for a binding revocation are that it&#8217;s\ncommunicated to the offeree before they accept the offer.<\/p>\n\n\n\n<p>Communication of revocation can be direct or indirect and\ncan be made by a third party. If the communication is indirect, it must meet\nseveral requirements. It needs to be:<\/p>\n\n\n\n<ul><li>Correct<\/li><li>Communicated by a reliable source<\/li><li>Able to be understood by a \u201creasonable person\u201d<\/li><\/ul>\n\n\n\n<p>Selling an item to someone else is considered a legal\nrevocation so long as the original offeree is notified of the sale before they\naccept the offer.<\/p>\n\n\n\n<p>Offers made through a publication are something of a\nspecial case. These offers can be revoked by a notice in that publication\nwithout specifically contacting the offeree.<\/p>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"communication-of-revocation\"><strong>COMMUNICATION OF REVOCATION <\/strong><\/h3>\n\n\n\n<p>The communication of revocation is complete at different\ntimes for the person who 4 makes it and the person to whom it is made. <\/p>\n\n\n\n<p><strong>ACCORDING TO SECTION 4 OF INDIAN CONTRACT ACT<\/strong><\/p>\n\n\n\n<p>\u201cThe communication of revocation is complete. <\/p>\n\n\n\n<ol><li>As against\nthe person who makes it, when it is put into a course of transmission to the\nperson to whom it is made, so as to be out of the power\/ of the person who make\nit. <\/li><li>ii) As\nagainst the person to whom it is made, when it comes to his knowledge.\u201d <\/li><\/ol>\n\n\n\n<p><strong>Example: <\/strong>A proposes by letter to sell his house to B at a certain price. B accepts the proposal by a letter sent by post. If A revokes his offer by telegram, then revocation of offer is complete as against A, when the telegram is sent and for B it is complete when B receives the telegram. If B revokes his acceptance by telegram the revocation of acceptance is complete for B when the telegram is sent and as against A, when it reaches him.<\/p>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"modes-of-revocation-of-offer\"><strong>MODES OF REVOCATION OF OFFER<\/strong><\/h3>\n\n\n\n<p>The following are the various modes of revocation of offer:<\/p>\n\n\n\n<p><strong>Revocation by Communication<\/strong><br \/>\nRevocation can be both, expressed or implied. It can be either orally expressed\nor expressed in writing. <strong>EXAMPLE:<\/strong> Mr.\nA. wishes to sell his gold chain to Mr. K. The former offers to sell the same\nto the latter. Mr. K is still contemplating what to do and has not accepted the\noffer yet. Meanwhile, Mr. A revokes the offer, as he does not wish to sell his\nchain anymore. This is considered as a proper, legal and accepted revocation.<\/p>\n\n\n\n<p><strong>Revocation by Expiry\/Lapse of\nTime<\/strong><br \/>\nAt times, the offer extended has a time limit. In case it remains unaccepted,\nthe offer expires or lapses. Any formal acceptance made after this mentioned\ndate does not create a contract as the offer is not open anymore.<\/p>\n\n\n\n<p><strong>EXAMPLE: <\/strong>Angel Holidays had\nmade an offer to the public that any holiday packages booked with them before\nthe 31st of May will be entitled to a 25% discount. So this implies that the offer\nis time-bound and shall expire after the aforementioned date. In case a person\naccepts the same on or after 1st of June would&nbsp;do so as it has lapsed.<\/p>\n\n\n\n<p><strong>Revocation by Failure to\nFulfill a Condition Precedent<\/strong><br \/>\nThere could be an offer made by a proposer but it may be subject to certain\nconditions.<\/p>\n\n\n\n<p><strong>EXAMPLE: <\/strong>M\/s AYB Associates had a job opening for an accountant. They\nwanted a person who was certified by the Chartered Accounts\u2019 Association. They\ninterviewed several candidates and like Arin. Arin too was keen on working with\nthem and accepted the job offer. But at the time of joining, he was asked to\nsubmit the original certificate of his diploma from the Chartered Accounts\u2019\nAssociation. He could not submit the same. So M\/s AYB Associates revoked the\njob offer and the condition precedent could not be fulfilled.<\/p>\n\n\n\n<p><strong>Revocation by Death\/Insanity of\nProposer<\/strong><br \/>\nOffers are automatically revoked if the proposer has passed away or has\nofficially been declared insane. If the person has passed away, it is\nunderstood that a contract cannot be created. If he\/she is declared insane then\nhe\/she is not competent to contract. Hence, if there is any offer made by a\nparty who either dies or is declared insane after the offer is made, by default\nit is revoked<\/p>\n\n\n\n<p><strong>EXAMPLE: <\/strong>Tyson made an offer to sell his house to Lytus. Unfortunately,\nTyson passed away and hence his offer stands revoked.<\/p>\n\n\n\n<p><strong>Revocation by Unqualified\nAcceptance<\/strong><br \/>\nIn case there is some offer made and the acceptor accepts it subject to his\/her\nown conditions, the offer stands revoked, as the acceptance is not clear,\nabsolute and qualified.<\/p>\n\n\n\n<p><strong>EXAMPLE: <\/strong>Abraham offered to sell his bike to Araz. Abraham wanted a\ncheque for the full amount. Araz accepted to buy and was OK with the price as\nwell but was adamant that he will pay partly by cheque and partly by cash.\nAbraham has every right to revoke the offer.<\/p>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"when-offers-are-considered-irrevocable-exception-of-revocation\"><strong>WHEN OFFERS\nARE CONSIDERED IRREVOCABLE\/ EXCEPTION OF REVOCATION<\/strong><\/h3>\n\n\n\n<p>Offers are considered irrevocable under the following\nconditions:<\/p>\n\n\n\n<ul><li>If it is stated that the offer shall be kept open as part of consideration.<\/li><li>If the offeree relied on the offer being open to their detriment\/ option.<\/li><li>If the contract is unilateral, has been partially completed or is underway and the offeree is still in compliance with the terms.<\/li><li>Signed offers with firm terms that guarantee a party will buy or sell goods that include an assurance that the offer must be held open, even if no consideration is present.<\/li><li>If a stated period is provided, the offer is irrevocable for the lesser of that period or three months time.<\/li><\/ul>\n\n\n\n<h2 class=\"has-text-align-center wp-block-heading\" id=\"revocation-of-acceptance\"><strong>REVOCATION OF ACCEPTANCE<\/strong><\/h2>\n\n\n\n<p><strong>Section 5 of the Indian Contract Act, 1872<\/strong><\/p>\n\n\n\n<p>\u201cAn\nacceptance may be revoked at any time before the communication of the acceptance\nis complete as against the acceptor, but not afterwards.\u201d<\/p>\n\n\n\n<p>Hence, the\nacceptor can revoke his acceptance at any time before his letter accepting the\noffer reaches the offeror. Once the letter acceptance reaches the offeror, the\nacceptance cannot be revoked. Thus, for effective revocation of acceptance it\nis necessary that the acceptor should adopt some speedier mode of communication\nso that his revocation reaches the offeror before the letter of acceptance. <\/p>\n\n\n\n<p><strong>For example,<\/strong> A\noffers by a letter dated February 2, sent by post, to sell his house to B at a\ncertain price. B accepts the offer on February 6 by a letter sent by post. The\nletter reaches A on February 8 at 2 p.m. Here B may revoke his acceptance at\nany time before 2 p.m. on February 8, but not afterwards. <\/p>\n\n\n\n<p>Sometimes, an\ninteresting situation may arise. The letter of acceptance and the telegram\ncontaining revocation of acceptance may be delivered to the offeror at the same\ntime. In such a situation the formation of a contract is a matter of chance.\nWhich one is opened first by the offeror will decide the issue. Generally it is\npresumed that a man of ordinary prudence will first read the telegram. Hence,\nthe revocation will be quite effective. When the parties at distant places\ncommunicate over telephone or telex, the question of revocation does not arise\nbecause there is instantaneous communication of the offer and its acceptance.\nThe offer is made and accepted at the same time. In brief you should remember\nthat an offer can be revoked at any time before the letter of acceptance&#8217; is\nposted and an acceptance can be revoked before it reaches the offeror.<\/p>\n\n\n\n<p>Section 5 also states that acceptance can be revoked until the communication of the acceptance is completed against the acceptor. No revocation of acceptance can happen after such date.<\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link\" href=\"https:\/\/www.linkedin.com\/in\/kajal-mahajan-7549b2197\/\" target=\"_blank\" rel=\"noreferrer noopener\">CONNECT ON LINKEDIN<\/a><\/div>\n<\/div>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"512\" height=\"170\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/04\/cropped-Presentation-resize-1.jpg\" alt=\"OFFER AND ACCEPTANCE CONTRACT LAW NOTES\" class=\"wp-image-829\" srcset=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/04\/cropped-Presentation-resize-1.jpg 512w, https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/04\/cropped-Presentation-resize-1-300x100.jpg 300w\" sizes=\"(max-width: 512px) 100vw, 512px\" \/><figcaption>OFFER AND ACCEPTANCE CONTRACT LAW NOTES<\/figcaption><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>OFFER AND ACCEPTANCE CONTRACT LAW NOTES<\/p>\n","protected":false},"author":2,"featured_media":5526,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[253],"tags":[3,254,255,256,257,258],"_links":{"self":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/5525"}],"collection":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/comments?post=5525"}],"version-history":[{"count":0,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/5525\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media\/5526"}],"wp:attachment":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media?parent=5525"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/categories?post=5525"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/tags?post=5525"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}