Paper B-5... CA, Module-B Mercantile Law
Prepared by: Syed Ali Raza
OFFER AND ACCEPTANCE
sec 2(a)Section 2(a) defines a proposal as,“When one person signifies to another his willingness to do or to abstain from doing any thing,with a view to obtaining the assent of that other to such act or abstinence, he is said to make a proposal.
Essentials for valid Offer :
It may Express or Implied2.
It must create legal relations3.
It must be definite and clear 4.
It is different from invitation of offer 5.
It may be Specific or General6.
It must communicated to the Offeree7.
It should not contain negative conditions8.
It may be subject to any conditions9.
It must not contain cross offer
Revocation of Offer :
Notice of Revocation2.
Lapse of time3.
Failure to fulfill Condition4.
Death or insanity of Offeror 5.
Revocation of Offer by Offeree6.
Death or insanity of Offeree7.
Counter offer by Offeree8.
Destruction of subject matter 10.
Failure to Accept according to Mode
sec 2(b)Section 2(b) defines acceptance as follows:When the person to whom proposal is made signifies his assent thereto, the proposal is said to beaccepted. A proposal when accepted becomes a promise (agreement).
Essentials for a Valid Acceptance :
It must given by the Offeree2.
It must absolute and unconditional3.
It must be in prescribed Manner 4.
It must be communicated to the Offeree5.
It may be express or implied6.
It must follow the offer 7.
It must be given within reasonable time