Offer , Acceptance and Revocation

Question 1

Offer

Answer 1

A person makes an offer when he shows his willingness to do or not to do something, to obtain the consent of other person.

Question 2

Acceptance

Answer 2

When the offeree shows his consent to offer, it is called acceptance.

Question 3

Agreement

Answer 3

Promises forming consideration for each other , are called agreement.

Promise + consideration = Agreement

Question 4

Contract

Answer 4

Contract is an agreement which is enforceable by law.
Agreement + Enforceability by law = Contract

Every contract is an agreement, but every agreement is not contract.

Question 5

Enforceability by law

Answer 5

A contract becomes enforceable by law when it creates legal obligations for parties.

Following are agreements which cannot be enforced by law:
- illegal Agreement
- Impossible Agreement
- Social, Domestic or Religious Agreement (unless agreed by parties)

Question 6

Specific offer

Answer 6

An offer is specific when it is made to a definite person (or persons). Such an offer can be accepted only by the person (or persons) to whom it is made.

Question 7

General offer

Answer 7

An offer is general when it is made to the world at large or public in general. Any person can accept such offer by acting on conditions of the offer.

Question 8

Counter offer

Answer 8

An offer made by the other party in response to a previous offer. Counter offer cancels original offer.

Question 9

Essentials of offer

Answer 9

1- Two person
2- Intension to create legal relationship
3- Certain and definite
4- Offer must be communicated
5- Conditional offer
6- An invitation to offer is not an offer

Question 10

Lapse/Revocation of an offer/proposal

Answer 10

1- Revocation by offeror
2- Rejection by offeree
3- Non-fulfilment of condition
4- Passing of stipulated or reasonable time
5- Death or insanity of parties before acceptance
6- Counter offer
7- Subsequent illegality or destruction of subject matter

Question 11

Essentials of an Acceptance

Answer 11

1- Acceptance must be absolute and unconditional
2- With stipulated or reasonable time
3- With stipulated or reasonable manner/mode
4- Acceptance must be given only by the person to whom it is made
5- Acceptance cannot precede an offer
6- Rejected offer cannot be accepted unless renewed
7- Negative confirmation
8- Acceptance of consideration, or performance of a condition
9- Acceptance must be communicated
- When it is put in the course of transmission, and is out of power of acceptor
- When it comes to the knowledge of the offeror
10- Revocation of acceptance

Question 12

Invitation to offer

Answer 12

1- An advertisement for sale of goods by auction
2- Display of goods with price tags
3- Circulation of information
4- A notice that goods will be sold/purchased by tender