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Offer Acceptance PPT

The document discusses the definition and characteristics of a proposal or offer according to Section 2(a) of the Indian Contract Act 1872. It defines a proposal as when one person signifies a willingness to do or abstain from doing something to another with the intent of obtaining their assent. The document outlines the basic elements and types of proposals, including express and implied offers, general and specific offers, and counteroffers.

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88 views22 pages

Offer Acceptance PPT

The document discusses the definition and characteristics of a proposal or offer according to Section 2(a) of the Indian Contract Act 1872. It defines a proposal as when one person signifies a willingness to do or abstain from doing something to another with the intent of obtaining their assent. The document outlines the basic elements and types of proposals, including express and implied offers, general and specific offers, and counteroffers.

Uploaded by

halk
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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PROPOSAL

(INDIAN CONTRACT ACT 1872)

BY
Mr. Ashok Prem
Assistant Professor, SOL, RNBGU, Bikaner
PROPOSAL OR OFFER

SECTION 2 (a)

•When a person signifies to another his willingness


•to do or to 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.
ILLUSTRATION OF PROPOSAL

• A says to B
• I want to buy your diamond necklace for Rs. Nine lacs.
• Will you sell it?
• Here A is expressing his willingness to B to buy the Diamond
Necklace at his terms
• i.e. for Rs. Nine lacs with a view to obtaining his assent to it.
• This is a proposal from A to B.
• A is the proposer or offeror and B is the offeree.
• If B accepts the proposal then A will be known as the promisor and B
will be the Promisee or Acceptor.
EXAMPLE OF PROPOSAL

A offer to sell his motor cycle to B for Rs 3000. B agrees to pay A Rs 3000
for the motor cycle . Here A is called a OFFERER or PROMISER & B the
OFFEREE or PROMISEE.
Basic Characteristics of a proposal

1. At least two parties-At least two parties are required

“No man can in his own right ,be under an obligation to himself.”
2. Proposal may be positive or negative

It is positive when the proposer expresses his willingness to do


something.
When The proposer expresses his willingness to abstain from doing
anything, it is a negative proposal.
Illustrations:
(a)A proposes B to make a biopic on the life of a cricket player. This
proposal is to do something. to make a film. It is a positive proposal.
(b)Mr. Sarvind Sejriwal proposes to Mr. Varun ,”If you do not file a suit
against me for defamation, I will give you Rs. One lac.” The proposal is
to abstain from doing something. It is a negative proposal.
2. Proposal must be made with an intention to
create legal relations
The intention of the parties is determined by the terms of agreement
as well as by the surrounding circumstances of the proposal.

Generally

Proposals made to friends or family members are not considered as an


offer &

Proposal made in the course of business is generally presumed to have


an intention to create legal relations unless otherwise intention is
shown in the agreement
3. Proposal must be signified or
communicated
• Every Proposal is complete only
when the proposer signifies or
communicated it to the party to
whom he wants to
communicate it.
• If the intended party does not
come to know about the offer
,the offer is incomplete.
Lalman Shukla V. Gauri Dutt (1913)11 All
LJ 489
4. Proposal must be definite

• An offer along with its terms must be definite and unambiguous.


• It must be certain or capable of being made certain.
• Illustrations-
• A offers to B to sell his Lamborghini for a price of Rs.5 Cr. or 6 Cr .Is
this an example of a valid offer ?
• A proposes to B to take on rent his house at Rs. 10000 per month if
the house is decorated according to the ultramodern style. Is this an
example of a valid offer ? (Taylor vs. Portington)
• A, while purchasing a horse from B Promised him that if the horse
were lucky to him, he would purchase one more horse . Is this an
example of a valid offer ? ( Guthing vs lynn )
5. Terms & Conditions must be
communicated with the Proposal
• A Proposer has every right to lay down as many T & C as he wishes
but all those terms must be communicated to the offeree along with
the proposal.
6. The offer should not bind the other
party to reply
KINDS OF OFFER

ON THE BASIS OF ON THE BASIS OF ON THE BASIS OF


MODE OF MAKING AN
NATURE OF OFFER OFFEREE
OFFER

EXPRESS IMPLIED GENERAL SPECIFIC


OFFER OFFER OFFER OFFER
EXPRESS OFFER:
An express offer is one which may be made by words spoken or written
such as letter , email ,etc.

IMPLIED OFFER :
An implied offer is one which may be gathered from the conduct of the
party or the circumstances of the case.

GENERAL OFFER :
when an offer is addressed to the whole world it is called general offer

SPECIFIC OFFER :
An offer made to a definite persons is called general offer ..
Carlill v Carbolic Smoke Ball
Company [1892] 2 QB 484 (QBD)
COUNTEROFFER :
A counteroffer is a rejection of the original offer and
making a new offer.

This new offer is a counteroffer .

A person who make a counteroffer and subsequently


changes his mind and wishes to accept the original offer
cannot do so as the first offer lapses and he cannot treat is
as still open.
.
STANDING OFFER
Many big organisations like LIC , INDIAN RAILWAYS, etc enter
into thousand of contracts everyday . It would be difficult for such
organisations to draw out a separate contract with every individual
.they have therefore printed contract(standard forms of contracts)

CROSS OFFERS
When two parties make identical offers to each other , in ignorance of
each other’s offer, such offers are known as cross offer. They shall not
constitute acceptance of one’s offer by the other.
Let’s Check

Q.1 The ________ is the party who makes an offer to enter into a
contract.
A. assignor
B. offeree
C. offeror
D. assignee
Q.2 The ________ is the party to whom an offer is made.
A. offeree
B. assignee
C. assignor
D. offeror
Let’s Check

Q.3 Harbhajan offered to sell his prize collection of football trophy to Sri
santh for £500.Sri santh rejected the price and offered to pay £400.
Harbhajan refused this amount. Later when Sri santh found out that
Harbhajan was going to sell the trophy items to virat he tried to accept
the original price of £500. Which of the following statements is correct?
a. A contract will be formed when Sri santh accepts harbhajan’s original
offer
b.If Sri santh accepts before virat, a contract will be formed between
harbhajan and Sri santh
c.c. There will be no contract, Sam’s attempt to accept the original price
of £500 is too late because a contract has been formed with virat
d. There will be no contract, Sam’s offer to pay £400 will be regarded as a
rejection of harbhajan’s offer
Let’s Check

Q.4 Angela wrote a letter to Chris saying, 'I will sell you my Wagon R for
price of £12000. If I hear nothing from you by the end of the week I will
take it that we have a deal'. Chris did not reply to this letter. When Chris
went to Angela's house to collect the car, he was told the car had been
sold on the previous day to Boris for £11500. Which one of the following
statements is correct?
•a. Angela has made a unilateral offer, which Chris has accepted by
turning up at the house to buy the car.
•b. Chris has accepted Angela’s offer and can sue for breach of contract.
•c. There is no contract between Angela and Chris, as Angela cannot
impose silence as acceptance upon Chris.
•d. Angela is in breach of contract because by his silence, Chris did accept
the offer.
ASSIGNMENTS

• Q.1 Define offer and explain all essential elements of a valid offer
with some decided cases.

• Q.2 Explain the various types of offer with the help of suitable
examples and case studies.

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