• An offer is a proposal by one party to another to enter into a legally

binding agreement.
• The person making the offer is known as offeror or proposer and the
person to whom it is made is called the offeree or proposee
• When the offeree accepts the offer ,he is called the acceptor or
promisee
• A contract emerges from the acceptance of an offer
• Acceptance is the act of assenting by the offeree to an offer
• An offer when accepted becomes a promise.
 A says to B-"I'll sell you my house for
$100,000, if you give me a check right now
for $10,000 and promise to pay the rest
within 30 days."
B Says-Here is my $10,000 check, and I'll
have the balance to you next week," this is
an acceptance
After the acceptance occurs, the parties
have an enforceable contract

MR Harry, CEO MR. Bunny, CEO

Sunshine Ltd.
ABC Ltd.
I accept your offer for
I propose to run the steel
the aforesaid profit
manufacturing portion of
ratio.
your company SUNSHINE
Ltd for 10 years with a
Lets sign the deal.
profit ratio of 8:2 .I am
ready with the deal.
 Contract Between:
Tata Consultancy Service
And
Nielsen
 Type-Public
 Founder’s –J.R.D Tata
 Headquarters- Mumbai, India
 Area Served- Worldwide
 Key people- Ratan Tata(Chairman)
 Services-IT, business consulting and outsourcing services

 Type-Public
 Founder-Arthur Charles Nielsen Sr.
 Headquarters-New York, Unites States
 Area Served- Worldwide
 Key people-James Attwood(Chairman),Mitch Barns(CEO)
 Services-global information and measurement enabling companies to
understand consumers and consumer behavior by measuring and
monitoring what consumers watch( programming, advertising) and what
consumers buy( categories, brands, products) on a global and local basis.
Television Measurement Company.
 Nielsen offered TCS to globally provide Nielsen with professional services relating to
information technology (including application development and maintenance),
business process outsourcing, client service knowledge process outsourcing,
management sciences, analytics, and financial planning

 TCS accepted the offer and entered into a contract with Nielsen in the year 2016
awarding TCS $ 2.5 billion and extending the contract till 2020

 However satisfied by the extraordinary service provided by TCS, the contract got
renewed by Nielsen to extend the contract end date to 2025 with a reform in the
total value of the contract to $2.25 billion.

 A three one-year renewal options is also granted to Nielsen

 The deal assures TSC of 320 million dollars in business from Nielsen yearly from
2017 to 2020, 186 million dollars yearly from 2021 to 2024 and 139.5 million
dollars in 2025.

 The contract is the largest ever bagged by an Indian information technology firm.
 The deal in the previous case study is thus an example of
a clear and legally binding contract between 2 companies.

 The offer is proposed by- Nielsen (offeror)

The offer is accepted by-TCS (offeree)

 The contract is valid up to the stipulated timeframe as

mentioned, post which it can be renewed according to the
discretion and clauses as put forward by the offeror
company that is Nielsen.