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What is an offer and acceptance in contract law?

Posted by jobseeker Krish Chandna | Approved
Answers (5)

Offer: A clear proposal by one party to make a contract on specific terms.

Acceptance: The other party’s unconditional agreement to those terms.

Together, they create an agreement, which is essential for a contract.

Answered by jobseeker Lavanya Bhardwaj | Approved

In Indian contract law, governed by the Indian Contract Act, 1872, offer and acceptance are foundational elements for the formation of a valid contract. These concepts, defined under Sections 2(a), 2(b), and related provisions, establish the mutual assent or agreement between parties. Below is a concise explanation of offer and acceptance, their essential features, legal requirements, and relevant case law, addressing the query while correcting the apparent typo ("soffer" to "offer").

Offer (Proposal)
Definition (Section 2(a)): An offer is a proposal made by one party (the offeror) to another (the offeree), expressing willingness to enter into a contract on specific terms, with the intention that it shall become binding once accepted.
Essential Features:
Expression of Willingness: The offeror must clearly indicate readiness to undertake an obligation or create a legal relationship.
Definite Terms: The offer must be specific and capable of acceptance, though minor details can be finalized later.
Intention to Be Bound: The offer must intend to create legal obligations upon acceptance.
Communication: An offer must be communicated to the offeree to be valid (Section 4).
Can Be Express or Implied: An offer can be made through words (written or oral) or conduct (e.g., displaying goods for sale).
Types of Offers:
Specific Offer: Made to a particular person or group (e.g., A offers to sell a car to B).
General Offer: Made to the public at large, capable of acceptance by anyone who fulfills the conditions (e.g., a reward advertisement).
Case Law: Carlill v. Carbolic Smoke Ball Co. (1893) (English case, influential in India) – A company’s advertisement promising £100 to anyone who used their product and still contracted influenza was held to be a valid general offer, as it was clear, definite, and intended to be binding.
Rules Governing Offers:
An offer must not be vague or ambiguous (Lalman Shukla v. Gauri Dutt, 1913 – A vague announcement of a reward was not a valid offer).
An offer lapses if not accepted within a specified time or a reasonable period (Section 6).
An offer can be revoked before acceptance, but revocation must be communicated (Section 5).
An invitation to treat (e.g., advertisements, price lists) is not an offer but an invitation to make an offer (Pharmaceutical Society of Great Britain v. Boots Cash Chemists, 1953, applied in India).
Acceptance
Definition (Section 2(b)): Acceptance occurs when the offeree signifies assent to the terms of the offer, agreeing to be bound by it. Upon acceptance, the offer becomes a promise, forming the basis of a contract.
Essential Features:
Absolute and Unqualified: Acceptance must mirror the offer’s terms without modifications (Section 7(1)). A conditional or varied acceptance is a counter-offer, which rejects the original offer.
Case Law: Hyde v. Wrench (1840) (applied in India) – A counter-offer to buy land at a lower price rejected the original offer, and no contract was formed.
Communicated to the Offeror: Acceptance must be conveyed to the offeror, except in cases of unilateral contracts (e.g., general offers) where performance constitutes acceptance (Section 8).
Example: In Carlill, using the smoke ball as per the advertisement’s terms constituted acceptance without direct communication.
Within Reasonable Time: Acceptance must occur within the time specified or a reasonable period (Section 6).
By the Offeree: Only the person or group to whom the offer is made can accept it.
Mode of Acceptance: Must follow the mode prescribed by the offeror, or if none, a reasonable mode (Section 7(2)).
Rules Governing Acceptance:
Silence does not constitute acceptance unless the offeree’s conduct implies assent (Felthouse v. Bindley, 1862 – An uncle’s offer to buy a horse was not accepted by the nephew’s silence).
Acceptance by post is effective when the letter is posted (Section 4), provided it is correctly addressed (Adams v. Lindsell, 1818, applied in India).
Acceptance must be made before the offer lapses or is revoked (Section 5).

Answered by jobseeker Krishna Kant Gautam | Approved

In contract law, an offer [section 2(a)] and acceptance [section 2(c)]are essential elements that create a legally binding agreement. An offer is a proposal made by one party (the offeror) to another (the offeree), while acceptance is the offeree's agreement to the terms of that offer, forming a legally binding contract.

Answered by jobseeker Garima Rajput | Approved

In contract law, an offer section 2(a) and acceptance section 2 (c) are essential elements that create a legally binding agreement. An offer is a proposal made by one party (the offeror) to another (the offeree), while acceptance is the offeree's agreement to the terms of that offer, forming a legally binding contract.

Answered by jobseeker kashvi | Approved

as per the sec 2a offer menas any thing offering and sec 2c acceptance the party offering either accept or reject

Answered by jobseeker naincy saraf | Approved

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