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Offer and acceptanceSection 2(a) of Indian contract act defines offer as when one person signifies to another his willingness to do or to abstain from doing something with a view to obtaining the assent of other , such act or abstinence is said as proposal.

Shweta Verma, Research Scholar

Legal rules regarding valid offerAn offer may be express or impliedIt should give rise to legal consequences and be capable of creating legal relationsThe term of the offer must be certainAn offer can be made subject to any terms and conditions.It should be made with a intent to obtain the assent of the other partyAn offer should not contain a term the non compliance of which would amount to acceptanceTwo identical cross offers do not make a contract.An invitation of offer is not an offer

Shweta Verma, Research Scholar

Invitation to offerDisplay of goods by a shopkeeper in his window, with prices marked on them, is not an offer but merely an invitation to the public to make an offer to buy the goods at the marked the prices.PHARMACEUTICAL SOCIETY OF GREAT BRITAIN vs BOOTS CASH CHEMISTSA sees an article marked price rupees twenty in Bs shop. He offers B Rs20 for the article. B refuses to sell saying the article is not for sale. Held A cannot force B to sell him the article at Rs20. Marking of price of an article amounts to an invitation to offer and not an offer

Shweta Verma, Research Scholar

Essential of offerIt must be an expression of the willingness to do or to abstain from doing somethingIt must be made to another personIt should be done with a objective to obtain the assent of the other personThe objective of offer should be legal one

Shweta Verma, Research Scholar

Lapses and revocation of offerAn offer lapses after stipulated or reasonable time An offer lapses by not being accepted in the mode prescribed An offer lapses by rejectionAn offer lapses by the death or the insanity of the offeror or the offeree before acceptanceAn offer lapses by revocation before acceptanceAn offer lapses by subsequent illegality or destruction of subject matter.

Shweta Verma, Research Scholar

When communication is completeCommunication of offer (sec 4 para 1)- the communication of offer is complete when ii comes to the knowledge of the person to whom is made.Communication of acceptance( sec 4 para2)-As against the proposer-when it is put into course of transmission to him so as to be out of the power of the acceptorAs against the acceptor- when it comes to the knowledge of the proposar

Shweta Verma, Research Scholar

Time of revocationof offer and acceptance(sec5)Revocation of offer(sec5 para1)- A proposal may be revoked at any time before the communication of its acceptance is complete as against the proposer but not afterwards.(Revocation of acceptance sec5 para2)- An acceptance may be revoked at any time before the communication of the acceptance is complete as against the acceptor, but not afterwards.

Shweta Verma, Research Scholar

Example A proposes by a letter sent by post to sell his to B. the letter is posted on the 1st of the month. B accept the proposal by a letter sent by post on the 4th. The letter reaches A on 6thA may revoke his offer at any time before B post his letter of accpetance i.e 4th but not afterwards.B may revoke his acceptance at any time before the letter of acceptance reaches A i.e 6th but not afterwards.

Shweta Verma, Research Scholar

Revocation of the offer by the offerorThe offeror can revoke his offer before it is accepted the bidder at an auction sale may withdraw (revoke) his bid (offer) before it is accepted by the auctioneer by using any of the customary method e.g. fall of hammer.

Shweta Verma, Research Scholar

Decided case on revocationof offer by the offerorCASE 1In cooke .v. Oxley(1790)3 T R 653 ,A offered to sell 266 hogshed at a certain price and promised to keep it open for acceptance by B till 4 PM of that day .Before that time A sold them to C ,B accepted before 4PM but after the revocation by A .it was held that the offer was already revoked.AB

Shweta Verma, Research Scholar

CASE 2IN Dickinson V. Dodds (1876) 2ch.D.463,A agreed to sell property to B by a written document which stated this offer to be left over until Friday 9AM.on the Thursday A made a contract to sell the property to C .B heard of this from X and on Friday at 7AM he delivered to A an acceptance of his offer .Held B could not accept As offer after he knew it had been revoked by the sale of the property to C.

Shweta Verma, Research Scholar

Case 2 offer lapses after reasonable timeIn Ramsgate Hotel Co. V.Montefiore (1866)1 Ex.109,M applied for shares in June ,but the allotment was not made till November .Held that the offer to take shares had lapsed as the reasonable time had passed since the making of the offer and M was not bound to take shares.

Shweta Verma, Research Scholar

Offer lapses after stipulated timeor reasonable time case 1 In Head V. Diggon ,3M and R.97,a seller on Thursday offered wool to a buyer and gave him three days in which he had to accept .The buyer accepted the offer on Monday but the seller after waiting for three days had sold the wool. It was held that the offer had lapsed by Monday morning by its express terms ,and the seller was not bound.

Shweta Verma, Research Scholar

ACCEPTANCESection 2(b) states thatA proposal when the personto whom the proposal is made signifies his assent thereto the proposal is said to be accepted

Shweta Verma, Research Scholar

Legal rules regarding acceptanceAcceptance must be given only by the person to whom the offer is made Acceptance must be absolute and unqualifiedIt should be communicated by the acceptorIt should be given within reasonable time or time stipulatedAcceptance must succeed the offer.

Shweta Verma, Research Scholar

Types of offerGeneral & specific offerExpress & implied offerPositive &negative offerCross offer

Shweta Verma, Research Scholar

General and specific offer

Shweta Verma, Research Scholar

Carbolic smoke ballCompany advertisementI want rewardCarlill vs Carbolic smoke ball company,(1983)IQB256

Shweta Verma, Research Scholar

Decided caseCarbolic smoke ball company advertised in the newspaper that whosever would take smoke balls ,manufactured by it ,according to the printed instructions would not contract influenza. The company offered a reward of $100 to anyone who contracted influenza after taking its smoke balls according to the printed instructions .It was added that $1000 was deposited with alliance bank to show the sincerity of the company. one Mrs.carlill used the smoke balls according to the directions given but contracted influenza. It was held that the offer was general one ,and Mrs.carlill had accepted it by acting according to the advertisement and therefore the company could not get away from responsibility by saying that it was a mere puff. She was entitled to get reward.

Shweta Verma, Research Scholar

Harbhajan lal vs. harcharan lalIn this case a young boy had run away from his fathers house. the father issued a pamphlet stating ,anybody who finds trace the boy and bring him home will get Rs500.Harbajan Lal who knew of the reward, found out the boy at a Railway station Dharamshala ,and took to the police station. It was held that the handbill was a general offer and therefore he was entitled to the reward.I HAVE FOUND THEBOY

Shweta Verma, Research Scholar

LALMAN vs GAURIDATTAIt was held that the reward for the missing child cannot be claimed by a person who traced the child without any knowledge of the announcement. There was no contract between the two in the first place because the proposal never came to the knowledge of the announcement. There was no contract between the two in the first place because the proposal never came to the knowledge of the person who found the child and thus he could never accept it.I want reward

Shweta Verma, Research Scholar

Express and implied offerWhen an offer is expressed by words spoken or written it is termed as an express offer.Implied offer means an offer made by conduct. when one person allows the other to perform certain acts under such circumstances that nobody would accept them without consideration it will amount to an offer by conduct and the permission of the party ,who is benefited by such performance ,will amount to his acceptance .such an acceptance will be asked to pay for it.

Shweta Verma, Research Scholar

Example of implied offerA bus company runs buses between India gate to kahsmiri gate. there is implied offer from the bus company to take any person on the route who is prepared to pay the prescribed fare. the offer will be said to be accepted by a passenger as soon as he takes seat in the bus.A bid at an auction is an implied offer to buy. Similarly consuming eatables at a self service restaurant, both create implied promise to pay for the benefits enjoyed.auctionAcceptor Of offerBidderIs anofferor

Shweta Verma, Research Scholar

Positive and negative offerA person may express his willingness to do something or to abstain from doing something e.g it may be an offer to construct a wall to provide privacy or not to construct a wall so that free passage of light and air may not be obstructed.

Shweta Verma, Research Scholar

Cross offerTwo offer similar in all respects, made by one party to the other ,in ignorance of each others offer, are termed as cross offers. they shall not constitute acceptance of ones offer by the other.

Shweta Verma, Research Scholar

Example of cross offerSham made an offer to ram to sell his car for Rs20000 through post. on the same time ram made an offer to buy shams car in Rs18000 through post ,without info of the offer of sham.Such an offer is known as cross offer. and offer of ram do not constitute acceptance.

Shweta Verma, Research Scholar

Example of cross offerTINN vs HOFFMANNA offers by a letter to sell his car to B for Rs 15000. B at the same time offers by a letter to buy As car for Rs 15000. The two letters cross each other in the post. Is there a contract between A and B?No cross offer do not form any contract.

Shweta Verma, Research Scholar

Communication of offer and acceptanceCommunication of offer(sec 4):The communication of the offer complete when it comes to the knowledge of the person to whom it is madeExample: A sends a proposal in the mail to B and if the mail lost, it can be held that the communication of the proposal is not complete.Communication of acceptance(sec4):communication of acceptance is complete when it put in course of transmission to him as to be out of the power of the acceptor to withdraw same and when it come to the knowledge of the proposer.

Shweta Verma, Research Scholar

Legal rules regarding acceptanceAcceptance must be given only by the person to whom the offer is made.Acceptance must be absolute and unqualified Acceptance must be expressed in some usual and reasonable manner ,unless the proposal prescribes the manner in which it is to accepted.Acceptance must be communicated by the acceptor.Acceptance must be given within a reasonable time and before the offer lapses and /or revoked.Acceptance must succeed the offer.

Shweta Verma, Research Scholar

Check your memoryHarish says in conversation to suresh that he will give Rs.10000 to a person whosoever marries his daughter .Alok marries Harishs daughter and files a suit to recover Rs10000.will he succeed ?

Shweta Verma, Research Scholar

solutionNo ,Harish has expressed his wish only ,and has never made an offer with a view to obtaining the assent of the other party.Secondly there was no offer to Alok or Suresh It was neither general offer nor specific offer.

Shweta Verma, Research Scholar

Check your memory againAmar had two visitors in his office one evening, Bharat and Ram. Bharat ran an event mgmt service. Amar had hosted a party the previous evening to celebrate his sons birthday. Bharat had done the mgmt for the party. Bharat had come to Amars office that evening, to collect Rs20000 for having done the work.Ram was the son of an ex- colleague of Amar. Rams family had fallen into bad times. They had accumulated a lot of debts. Ram was studying in the final year of college. He was going around meeting people his father had known and soliciting money as donation, so as to be able to finish his education. Amar was a kind person. He told Ram that he would give him Rs5000. Ram pleaded and said that if Amar could give him Rs10000, he would not have to go any further to collect money. Amar agreed to give him Rs10000While Amar was in the process of obtaining the money to give to Bharat and Ram, the phone rang. It was Amars stock broker. He informed Amar that on a particular purchase and sale order Amar had a loss of huge amount of money. He had to pay to the broker Rs9 lakh, within a week. Amar was very upset. In result he refused to pay the money agreed to Ram and Bharat.

Shweta Verma, Research Scholar

questionsWas there an agreement between Amar and Bharat?Was there an agreement between Amar and Ram? should agreements be fulfilled?

Shweta Verma, Research Scholar