What is offer

An offer is a communication that gives the listener the power to conclude a contract. The question of whether a party in fact made an offer is a common question in a contract case. The general rule is that it must be reasonable under the circumstances for the recipient to believe that the communication is an offer. The more definite the communication, the more likely it is to constitute an offer. If an offer spells out such terms as quantity, quality, price, and time and place of delivery, a court may find that an offer was made

Example
If a merchant says to a customer, "I will sell you a dozen high-grade widgets for $100 each to be delivered to your shop on December 31",a court would likely find such a communication sufficiently definite to constitute an offer. On the other hand, a statement such as "I am thinking of selling some widgets" would probably not be labeled an offer.

Essentials of a valid offer

1.Intention to create legal relations. 2.Terms of offer must be certain,definite,and not vague. 3.Offfer must be communicated to the other parties. 4.An invitation to offer is not an offer. 5.Offer must be conditional. 6.Offer may be express or implied.

7.Offer may be general or specific. 8.Counter offer amounts to the rejection of the original offer. 9.Offer must be made with a view to obtaining the assent of the offeree.

What is Acceptance
An expression of absolute and unconditional agreement to all the terms set out in the offer. It can be oral or in writing. The acceptance must exactly mirror the original offer made

Example
Mr. Vikas offers to sell his NANO car to Mr. Raman for Rs 1,60,000.Mr Raman agrees to buy the car at this offer.Mr Ramans act is an acceptanceof Mr. Vikass offer.

Legal Rules for a valid Acceptance

1.Acceptance must be absolute. 2.Acceptance must be in the prescibed mode. 3.Acceptance must follow the offer. 4.Acceptance must be communicated to the offeror. 5.Acceptance may be express or implied. 6.It cannot prcede an offer.

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