Law Of Contract Offer And Acceptance Pdf
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Offer and acceptance are generally recognised as essential requirements for the formation of a contract, and analysis of their operation is a traditional approach in contract law. The offer and acceptance formula, developed in the 19th century, identifies a moment of formation when the parties are of one mind.
- Offer and Acceptance Under Indian Contract Act, 1872
- Extra questions
- What are the elements of a contract?
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Offer and Acceptance Under Indian Contract Act, 1872
Other requirements are that agreement must be certain and final. OFFER:a Offer defined Definition: an expression of willingness of one party to contract on specified terms, made with intention that is to become binding as soon as it is accepted by the person to whom it is addressed. Objective test: An apparent intention may suffice, i.
Moran v University college Salford No. Subjective element: But depends on the state of mind of offeree B did he believe that offeror intended to be bound? Possible states of mind for B Test embodies principle of convenience. Not objective over subjective criteria.
Conduct as offer: an offer may be addressed to individual, group or world at large. May be expressly done or by conduct. Many preliminary communications go on before offer is made. Question whether statement is offer or ITT is one of intention with which it was made. Offer may be withdrawn before hammer falls. Offer lapses as soon as higher one is made and auctioneer cant accept next highest if new offer withdrawn.
Customer makes offer to buy when he presents goods for payment. Here retailer offeree may accept or reject offer. Intention to be bound being infered from the fact that no further bargaining is expected to result from them, same for other unilateral contracts. Cases:Carlill v Carbollic smoke ball co Gibbons v Proctor Bilateral ones are not often held to be offers as they often lead to further bargaining. So are ITT. Cases:Partridge v Crittenden Thornton v Shoe Lane parking Chapelton v Barry urban DC c Where and When an Offer takes effectIn one sense, an offer can't take effect until received by offeree, but for purpose of determining whether a contract can be sued on in a particular court, it has been held the an offer sent through post takes effect where it was posted.
On thius test, a mere acknowledgement of an offer being received or understood would not be an acceptance. But it may contain express terms or in a particular context imply that the offeree agreed to the terms of the offer and so accepted it. Continuing negoitations: when parties negotiate over long time, it can be difficult to say when exactly and offer was made or accepted as parties carry on adding terms and negotiating even after an apparent agreement has been made.
Then courts must look at whole correspondacne and decide whether, on its true construction, the parties agreed to the same terms. If so there is a contract. Acceptance by conduct: An offer may be accepted through conduct. But conduct will only have this effect if the offeree did this act with intention as established by the objective principle of accepting the offer. No acceptance where the offeree's conduct clearly indicates an intetnoin to reject the offer.
Acceptance must be unqualified: A communication may fail to amount to an acceptance as it atteepts to vary terms of the offer. Such replys are counter-offers which the original offeror can accept or reject. Butler Machine tool co v Ex-cell-O Corp After parties have reached agreement, offer and acceptance may be set out in formal documents. Reason: is the difficulty of proving an uncommunicated decision to accept it. Main reason for the rules is that it could cause hardship to the offeror if he were bound without knowing that his offer has been accepted.
For an acceptance to be communicated it has to be brought to attention of offeror. If not, then no contract. If he is authorised to receive the acceptance, then contract takes effect as it is communicated to him. For this purpose a letter is posted when in the control of the post office.
Reasons for the rule:-offeror must be considered as making the offer all the time his offer is in the post. And therefore agreement is complete as soon as acceptance is posted. But depends on each cases circumstances. Postal rule favours the offeree.
And can be sometimes justified on the grounds that an offeror who chooses to start negotiations through post takes the risk of delay and accidents in the post. But this is not wholly satisfactory as negoitations may have been started by offeree. The rule does however, serve a useful function in limiting the offerors ability to withdraw his offer at will. Such acceptances are governed by general rule that acceptance must be communicated to offeror.
The postal rule will not apply where it will lead to manifest inconvenience or absurdity. Its scope is determined by practical considerations rather than by deductions from a general rule. Holwell securities v Hughes Misdirected acceptance: when letter of acceptance is lost or delayed due to carelessness or fault of offeree, postal rule will not apply.
Garbled messages: messages may become garbled during transmission through no ones fault. In this case, offeror should take risk of message becoming garbled just as he takes risk of delay or postal accidents. Revocation of posted acceptance: An offeree, may after posting acceptance attempt to revoke it by sending another transmission which reaches offeror before or at same tiem as acceptance. An acceptance which accomplishes that object just as well or better, binds the offeror.
For this exception, the offeree object in view must first be determined. So what if their wishes happen to coincide. Act of acceptance must be given in exchange for offer.
Motive for acceptance: aa person who knows of the offer may do act constiting acceptance with some motive other than that of accepting offer. An act wholly motivated by factors other than existence of offer cannot amount to an acceptance.
But if the offer existing plays some part no matter how small in inducing the person to do the required act, it is a valid acceptance Carlill v Carbollic Smoke Ball co Difficulties arise as a contract may be unilateral in its inception but become bilateral during the course of its performance The Eurymedon General rules as to acceptance: once promise is classified as an offer of a unilateral contract, a number of rules apply:1 Offer can be accepted by fully performing act or forbearance.
But there is dispute as to when the offer is 'accpeted'. Acceptance by part performance: In general, the view is that the offeror makes to offers: 1 the principal offer 2 the collateral offer: to keep principal offer open once performance has begun. Collateral offer accepted by beginning to perform. Notice of thw withdrawal must be given and reach the offeree.
Communication need not come for m the offeror. Sufficeint for the info about withdrawal to come from a reliable source. But can be uncertain when deciding who is reliable source. Revival of a withdrawn offer: an attempt to accept a withdrawn offer is ineffective but may amount to a new offer on the same terms as the previous offer. An attempt to accept offer but with new conditions may amount to a rejection of the original offer coupled with a counter offer. After this, original offer is no longer valid.
But, you must ascertain whether the offeree's statement was infact a counter offer or merely an inquiry. Rejection must be communicated to the offeror. Otherwise it has no affect. An offer which doesn't expressly state time, lapses after a reasonable amount of time. This depends on the circumstances of the goods etc. Such a provision may also be implied.
Death terminates the offer as parties can no longer reach agreement. But, the death of one party may not necessarily mean termination if the contract can continued to be carried out by his employment or other agents. But in the case of personal services. The contract is terminated. But there is debate as to whether this should be regarded as a termination of the contract or a frustration of it.
But the courts do not expect conmerical documents to be drafter with strict precision, and will, particuallry if parties have acted on an agreement, do thweir best to uphold contract. Duty to resolve uncertainty: agreement wit ha vague term may still be binding if one party is unfer a duty to resovle the uncertainty. But not all details necessarily required meticulous detail not needed. Especially where remaining details can be determined by standard of reasonableness or by law statute ii Agreement 'subject to contract'Such an agreement is incomplete until the details of a formal contract have been settled and approved by the parties.
No binding contract until there has been an exchange of contracts, before exchange, there is no uncertainty as to terms of agreement, but no contract because neither party intends to be bound until contracts are exchanged. This collateral contract must satisfy requirement of certainty.
This article presents an overview of comparative contract law. It reveals a number of differences between civilian legal systems and the common law, and also between French and German law as two main exponents of the civil-law tradition and, to some extent, even between English and US-American law. The same is true of other major issues in the field of general contract law that have not been touched upon. But there is a gradual convergence. This convergence is due to developments in all of the four legal systems covered in this article: English, US-American, French, and German law. Access to the complete content on Oxford Handbooks Online requires a subscription or purchase.
What are the elements of a contract?
An agreement between private parties creating mutual obligations enforceable by law. In some states, element of consideration can be satisfied by a valid substitute. Contracts are promises that the law will enforce.
If any of the essential elements of a valid contract is absent, then the contract of sale will not be valid.