Presented By: Yash Thakkar

Glossary

 Offeror, Proposer or Promisor - Person making the

offer.

 Offeree or Proposee – To whom offer is made.

 Aceeptor or Promisee – When Offeree/Proposee

accepts the offer.
Offer
 “An offer is a proposal by one party to another to enter
into a legally binding agreement with him”. – Elements
of Mercantile Law by N.D . Kapoor.

 Key:
Definite Offer
Unqualified Acceptance - Restricted Acceptance
Assent - To Ag ree
Express Offer
 Is any offer which is spoken, written or verbal.

Implied Offer
 An offer which has logical consequence from conduct of
the parties or its circumstance.

Specific Offer
 If an offer is made to particular person.

General Offer
 Is an made to mass – anyone.
Offer must be such as in law is capable of being
accepted and giving rise to legal relationship.
Terms of offer must be definite, unambiguous and
certain.
An Offer may be distinguished from:
 A Declaration
 A Statement or Announcement
 An invitation to make an offer or to do business
 Newspaper advertisements are not offers
Offer must be communicated
Offer must be made with a view to obtaining the
assent.
Offer should not contain a term the non-compliance
of which may be assumed to amount to acceptance.
 Ex: Publishing Company – Media Corporation sends
you a mail stating you will be made a member of new
Cosmopolitan Magazine for an yearly membership fees
of $500 if you do not reply to this letter within 15 days
we will consider you have accepted to be our member.
A Statement of price is not an offer
 Ex: Quoatation
“ A tender is definite offer or standing offer”.

Definite Offer Tender’s – One time transaction

Standing Offer Tender’s – Continuing transactions

“To an offer what a lighted match is to a train of
gunpowder. It produces something which cannot be
recalled or undone”.

 Offer when accepted = Promise

Express Or Implied
It must be absolute and unqualified
It must be communicated to the offeror – MOU, Draft
It must be according to the mode prescribed or usual
and reasonable mode
It must be given within a reasonable time
It cannot precede an offer
It must show an intention on the part of the acceptor
to fulfil terms of the promise
It must be given by the party or parties to whom the
offer is made
It must be given before the offer lapses or before the
offer is withdrawn
It cannot be implied from silence – Magazine
Members
“ Exchange of something in value is an essential
element to prove contract are not void”

Elements of Consideration
 It must move at the desire of the promisor
If you perform an activity with out an desire of promisor.
Example people washing your car or windscreen on traffic
signal or parking lot.
 It may move from the promisee or any other person.
Example: If Jay lends money to Stacey at an agreed interest
rate , if Jay made an condition that interest to be donated to
Parul Institute on monthly basis.
It may be an act, abstinence or forbearance or a
return promise
 Example compromise of disputes
 Example settlement with creditors
It may be past present or future
It need not be adequate
It must be real and not illusory
It must be something which the promisor is not
already bound to do
It must not be illegal, immoral or opposed to public
policy
 Minors
 Any agreement is void
 He/she can be a promisee or a beneficiary
 His agreement cannot be ratified by him on attaing the age of majority.
 If he has received any benefit under an void agreement he is entitle to keep
the goods or services and not pay any compensation.
 He/She can always claim minority.
 There is no specific performance of the agreement .
 He/She cannot enter into a contract of a Partnership.
 He/She cannot be declared bankrupt
 He is liable for “necessaries” supplied or necessary services
 He/She can be an agent
 Parents/Guardians are not liable for contracts with minor
 A minor is liable in civil wrong

 Persons of unsound mind

 Persons disqualified by any law to which the subject
Persons of unsound mind
 Idiots
 Lunatics
 Drunken or intoxicated persons
Persons disqualified by any law to which the subject
 Serving Criminal Detention
 Bankrupt
 Alien Enemies
If it is forbidden by law
If it is of such a nature that if permitted, it would
defeat the provisions of law
If it is fraudulent
If it involves or implies injury to the person or
property of another
If the court regards it as immoral
Ex turpi cause non oritur actio – No actions
In pari delicto, potior est conditio defendentis – One
party has performed and another fails to perform – No
reversal or obligation enforced by court.