Offer/ Proposal- The process to be enter in the contract begins with offer which is made by one party to other party. when one person signifies to another his willingness to do or to abstain from doing anything, with a view to obtaining the assent of the other to such act or abstinence he is said to make a proposal or an offer".
ACCEPTANCE - Acceptance is an expression by the offeror of his willingness to be bound by the terms of the offer. According to the Section 2(b) of the Act defines when the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted. The promise when accepted becomes a promise.
Ex. A offer to sell his bike at 50 thousand rupees. B accepts such an offer. Now, it has become an offer.
Essentials of a valid offer - It is very important to be good relation between offeror and offeree that offer should be valid and essential.
There are many essentials of a valid offer -
1. The offer must be distinguished from a mere declaration of Intention.
2. Terms of offer must be certain, definite and not vague
3. The offer must intend to create legal relations
4.The offer must be communicated
5. The offer must be distinguished from an invitation to offer.
6. The offer must be made with the view to obtaining the consent.
7. Special terms and condition in an offer must be communicated
1. The Offer must be distinguished from a mere declaration of Intention
Sometimes a person may make a statement without any intention of creating a binding Obligation. such statement or declaration only indicates that he is willing to negotiate and an offer will be made or invited in future.
Ex.
An auctioneer advertised in a media that a sale of some assets would be held on a certain date. A person, with the intention to buy assets came from a distant place for the auction but the auction was cancelled. He cannot file a suit against the auctioneer for his loss of time and expenses because the advertisement was merely a declaration of intention to hold auction.
2. Terms of offer must be certain, definite and not vague
the terms and conditions of the offer must be certain and unambiguous. otherwise it would not be a valid offer. as per sec. 29. " agreements, the meaning of which is not certain, or capable of being made certain, are void".
3. The offer must intend to create legal relations
A valid offer must intend to create legal relations, It is so- because the very purpose of entering into an agreement is to make it enforceable in a court of law, An offer to perform, social, religious or moral acts without any intention of creating legal relations will not be a valid offer.
4. The offer must be communicated
An offer is effective only when it is communicated to the person to whom it is made. this is true of specific as well as general offers. the communication may be express or implied. and acceptance of an offer, in ignorance of the offer, is no acceptance at all.
5.The offer must be distinguished from an invitation to offer
An invitation to offer is not an offer. it is an invitation to the party to make an offer. it shows the person's Willingness to have negotiations with him. but he is not bound to accept the offer when the other party makes it.
6. The offer must be made with the view to obtaining the consent.
An 'offer to do or not to do must be made with the view to obtain the consent of the other party. Mere enquiry is not an offer.
7. Special terms or condition in an offer must be communicated
The offeror is free to define any terms and conditions in his offer and if the person accepts the offer then he would be bound by those terms and conditions. If there are some special terms and conditions they should also be duly communicated.
6 various modes in which contract may be discharged.
5 most remedies for breach of contract.
what is promissory note and bill of exchange?
Memorandum of association and it's all classes.
what are special features of partnership? right and duties of a partner.
Please do not enter any spam link in the comment box.