Ways In Which The Offer Will Be Extinguished

Prepared by: Group No:1

Flow of Presentation
‡ Long silenced ‡ Express or implied rejection ‡ Expiry of time ‡ Revocation of offer before acceptance

30000 on the phone ‡ Vishal tells him that he will think it over and let him know ‡ Vishal gets back after 6 months but Shanat has already sold the computer to another person ‡ Vishal claiming that he has formed an agreement by accepting the offer .Long Silence ‡ Shanat offers to sell his computer to Vishal for Rs.

Exploration .

‡ A long silence impliedly means disinterest ‡ When Vishal did not get back to Shanat for a long time. Shanat assumed that Vishal was not interested in the offer .

Summary .

Montefiore) .‡ A long silence implies rejection of an offer (Ramsgate Victoria Hotel Company Limited vs.

Expressed rejection of an Offer ‡ Shanat offers to sell a computer to Vishal for Rs.30000 ‡ Vishal refuses to buy it ‡ Later he comes back and says.µ I accept your offer¶ ‡ But Shanat has sold the computer to another person.  Has an agreement been made between Shanat and Vishal? .

Exploration .

Vishal brought the offer to an end ‡ Thereafter.‡ By saying no to the offer. Shanat was freed of any future obligation arising from the offer ‡ Hyde vs. Wrench .

Implied rejection ‡ Shanat offers to sell a computer to Vishal for Rs. Vishal comes back and says. takes out his hand and shakes it ‡ Later. puts his hand in his pocket. Shanat has sold the computer to another person  Has an agreement been made between Shanat and Vishal? .30000 ‡ Vishal shakes his head. µI accept your offer¶ ‡ But.

Exploration .

the rejection has been communicated in an implied manner .‡ The shaking of head and hand has communicated to Shanat that Vishal did not have money and is rejecting the offer ‡ So.

Summary ‡ An offer can get extinguished by express or implied rejection .

30000 and tell him he could think over it and let him know by 6 pm.Expiry of time ‡ Shanat offers to sell his computer to Vishal for Rs. coming Monday ‡ Vishal calls Shanat on Tuesday evening and says. µI accept your offer¶ ‡ Shanat had sold the computer on Tuesday morning to another person ‡ Vishal is demanding the computer .

Exploration ‡ Agreements are voluntarily formed between two parties ‡ Shanat clearly intends that the offer is valid only till 6 pm. the offer is already extinguised . Monday ‡ So. when Vishal comes back.

Summary ‡ An offer can get extinguished by expiry of the time .

Revocation of an Offer ‡ Sunil offers to sell 10 shares of a company to Arman. as he needs money to buy a house ‡ Arman is still considering the offer ‡ Meanwhile. Sunil manages to get an additional loan for buying the house ‡ He doesn¶t need to sell the shares now .

.‡ He calls Arman 2 days after having made the offer and tells him that the shares are not for sale any more ‡ Arman insists that Sunil has to sell the shares to him.

Exploration ‡ Rights and obligations arises only when an agreement is formed ‡ An agreement comes into being only on acceptance of an offer ‡ Till then. neither of the parties have any obligation to one another ‡ Pane vs. Cave .

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