BCOC-133 BUSINESS LAW IMPORTANT NOTES CHAPTER:2 OFFER AND ACCEPTANCE

on

 

bBCOC-133 BUSINESS LAW IMPORTANT NOTES CHAPTER:2 OFFER AND ACCEPTANCE

What is an Offer:-
In a business law an offer is a proposal made by one party( the offeror) and the other party (offeree) indicating a willingness to enter in to a contractual agreement.

The offer must include specific terms such as price, quantity, and other relevant details.it is a crucial elements in the formation of contract. Once offer accepts the offer, a legally binding agreement is established, provided that all other necessary elements of contract met.

How is an Offer made:-

  1. Expressoffer:-it’sastraightforwardandovertproposalmadebyonepartytoanother.It’s

    explicitly communicated either verbally or in writing .

  2. Implied offer:-it’s an offer which is not made by words spoken or written .it’s not explicitly

    in words but is inferred from the conduct, actions or circumstances of the parties involved.

To whom an offer is made:- an offer made to specific party known as the “offeree”. The offeree is an individual or entity to whom the offeror extends the proposal. Expressing a willingness to enter into a contractual agreement on specified terms. The offer is direct towards the offeree, and it’s the offeree’s decision to accept, reject , or negotiate the term of the offer.

Legal rules for valid offer:-

  1. Intention to create a legal relationship:-the offeror must intend for the offer to create a

    legal relationship upon acceptance

  2. Definiteness oft erm:-the offer must be clear, definite and specific in terms ,leaving no

    room for ambiguity

  3. Communication:-the offer must communicated to the offeree, ensuring that the offeree is aware of the proposal

  4. Seriousness of intent:-the offer must have genuine intention to be bound by the terms of

    the offer( demonstrating seriousness and sincerity)

  5. Revocation:-the offer has the right to revoke the offer before it is accepted

  6. Laps of time:-the offer may have a specified duration for acceptance.

  7. Termination:-the offer can be terminated by rejection ,counter offer ,death or incapacity

    of either party.

Cross offer:- a cross offer is like a double coincidence where two people make the same offer to each other without knowing. It’s bit like trying to trade identical items with a friend without realizing you both want to make the same deal. Since neither knows about other’s offer ,it usually doesn’t create a binding agreement unless on person find out and accept the other’s offer

Tender offer:- tender offer(standing offer) is like a public invitation to buy stocks in a company. One company announces it wants to buy share from the public at a specific price, often aiming to gain control.

What is an acceptance:- acceptance is a contract law is when someone agrees to the term of an offer, creating a mutual agreement and forming a binding contact.
Who can accept:-the person who can accept an offer typically offeree. The individual or the entity to whom the offer is made.

How is an acceptance made:-

  1. Expressacceptance:-clearlyanddirectlycommunicatingagreement,eitherverballyorin

    writing

  2. Impliedacceptance:-indicatingagreementthroughactionsorconduct.

Legal rules of a valid acceptance:-

  1. Communication:-theacceptancemustbecommunicatedtotheofferororbeinaformof

    that the offeror can be reasonably infer as acceptance

  2. Inter to accept:- the offeree must have a genuine intention to accept the offer

  3. Mirrorimagerule:-theacceptanceshouldmirrorthetermoftheoffer,without

    introducing new condition.

  4. Authorizedmeans:-theacceptanceshouldbecommunicatedthroughmeansspecifiedin

    the offer or by a reasonable and customary method.

  5. Timelines:-acceptanceshouldoccurwithinthetimeframe

  6. Acceptanceofunilateralcontacts:-inthecaseofunilateralcontracts,performanceofthe

    requested act serves as acceptance

  7. Acceptancemustbegivenbeforethelapseroriswithdrawn.

Communication of offer:- communication of offer involves expressing a clear willingness to enter in to a contract , it can be done verbally, in writing or through actions. Ensure they are aware of the proposal and can be respond accordingly

Communication of acceptance:- the communication can take various forms including verbal expression, written communication( such as letter or emails) or actions that imply acceptance must be effectively.
Contact over telephone/mobile :-a contract by telephone is treated on the same principle as an oral agreement made between two parties when they are face to face each other.

Revocation of offer:-it refers to the withdrawal or cancellation of the proposal by the offeror before the offeree accepts. This can be done through explicit communication of the withdrawal or by taking actions inconsistent with the continuation of the offer. it’s important to note that revocation is generally effective upon communication to the offeree, and once the offeree is aware the offer is no longar valid.

Revocation of acceptance:- revocation of accept is a concept less commonly used in contract of law. once the acceptance is communicated and contact is formed , revoking acceptance is challenging. However certain circumstances like fraud, mutual mistake or duress may provide grounds for revoking acceptance. It is important to note that these situations are usually limited and once valid acceptance occurs, revoking is not a straightforward process

Revocation of communication:- it refers to the withdrawal or cancellation of an offer by the offeror. This can be done explicitly through a clear statement or implicitly through actions. The revocation must be effectively communicated to the offeree.

Laps of an offer:-it occurs when the offer is no longer valid or available for acceptance.

  1. Expirationoftime:-ifaofferspecifiesadeadlineforacceptance.Theofferlapswhenthe

    time expires

  2. Revocation:-theoffercanlapseiftheofferorexplicitlyrevokesitbeforetheoffereeaccepts

  3. Rejection:-iftheoffereerejecttheoffer

  4. Deathorincapacity:-ifeitherparty(offerororofferee)diesorbecameincapacitated

    before acceptance, the offer usually laps

  5. Counteroffer:-acounteroffer.Bytheoffereeterminatestheoriginaloffer,creatingnew

    proposal

“An invitation to offer not an offer”
An invitation to offer is an invitation to negotiate or make an offer, not a definite proposal. It indicates a willingness to receive offer but doesn’t create binding agreement until actual offer is made an accepted.eg: a catalogue , advertisement

General offer:- it is an offer made to the public or a large group of people, and the acceptance through performance of specific act.

“Acceptance must be something more than a mere mental assent”
Acceptance of contract law goes beyond mere mental agreement. It requires the offeree to communicate their agreement to the term of the offer through words, actions or conduct it

Comments

Post a Comment