Rajiv Gandhi National University of Law, Punjab

Law of Contracts
Topic: Consequences of Offer and Acceptance Under the Indian
Contract Law

Presented by: Presented to:

Deepali Ms. Lovepreet Kaur
Roll No. 21011 Asst. Professor of Law,
Group No. 2 RGNUL, Punjab
Introduction
 Contract- According to section 2(h) of the Indian Contract Act, 1872
“An agreement enforceable by law is a contract.”

 Offer- Offer is defined in the section 2(a) of the Indian Contract Act, 1872 as:
“When one person signifies to another his willingness to do or abstain from doing anything, with a
view to obtaining the assent of that other to such act or abstinence, he is said to make a proposal.”

 Acceptance- Acceptance is defined in the section 2(b) of the Indian Contract Act,1872 as:
“When the person to whom the proposal is made signifies his assent thereto, the proposal is said to
accepted. A proposal, when accepted, becomes a promise.”
Essentials of Offer and Acceptance Under the Indian Contract Act

Essentials of Valid Offer Essentials of Valid Acceptance [s.7]

 Offer must be communicated  Acceptance must be absolute and unqualified

 Must create a legal relationship  Must be in reasonable and prescribed mode
 Terms should be clear, definite and
unambiguous
 Must be made to obtain the assent of the other
party
 Revocation of Offer and Acceptance [s.5]

Revocation of Offer [s.6] Revocation of Acceptance [s.5]

 Notice of Revocation May be revoked at any time before the

communication of acceptance is completed as
“Henthorn v. Fraser”
against the acceptor.
 Lapse of Time
 By Failure to Accept the Condition Precedent
 By Death or Insanity of Offeror
Landmark Judgement
 Conclusion
Offer and Acceptance are the basic requirements of a valid Contract.
Thank you