CHAPTER NO.2 (OFFER AND ACCEPTANCE)

BUSINESS LAW
(KHALID MAHMOOD CHEEMA)

CHAPTER NO.2 (OFFER AND ACCEPTANCE)



Q: DEfine proposal or offer & described the essentials of valid offer?
Proposal: (offer) section 2(a)Proposal or offer are in use in s same sense & there is no diference in their meanings.
" When one person signifiese to another to his willingness to do or abstain from doing anything with the view to absatining a consent of that other such or such act said to make a propossal".
e.g: A promise to sel his cycle to S for Rs 1500 , A makes an offer toS.
Promiser/ offer: The person who said the proposal is called promiser.
Promisee/ offeree: To whom the proposal is made is calledpromisee.
There are four types of offer.
1) General
2) Specific
3)Express
4)Implied
1) General:When proposal is made with the entire words it is called general proposal .The contract is made only with the person who performed the condition of a proposal.
2) Specific proposal: It is made to specific person or specific class it is also accepted by specific proposal.
3) Express proposal: When proposal is expressed words & writting it is called express proposal.
e.g: A says to N that he will sell his house to him for Rs 2Lac. it is an express proposal.
4) Implied proposal: When proposal is conveyed by the contract of the offered it is called implied proposal.

Essentials of the valid offer

Following are the essetial point of valid contract.
1. Legal ralationship: It is essential valid offer that it must be made with the intention of creation relationship otherwise it will be onl invitation. A social initation may not create legal relationship.
e.g: MR Kamal invite MR Hasan to dinner create a legal relationship.
2. Clear term & Condition: Proposal should be cleared understand & simple. it may not create confusion in a mind of proposee it must be cleared & definite.
e.g: MR Mohsin offered to sell his house to MR Kashif for Rs 5 Lac. & he agrees . its a contract which create legal relationship.
3. General & Specific offer: When peoposal is opened to general public it is called general proposal. on the other hand when it is made to specific person. it is called specific offer In case of generel peoposal contract is made with person to accept the offer.
e;g; A announes in a TV a reward of Rs 5000 for any who will return his lost radio, it is a general offer .
2= A makes an offer to N to sell his bike for Rs 50000 it is a specific offer . in this case only N can accept.
4. Communicated: It is also important role for the vilidity of proposal. wihout communication acceptance of proposal by the proposee/ . how& offer can be accepted unless had been brought to the knowledge of a person to who it is made.
5 .Object: Proposal with out legal object withnot be void. The object of the proposal must be to get the consent of the other party to whom the offfer has been made.
6. Distinguished b/w proposal & invitation: Proposal is different than the invitation of tenders price list of goods & quatation . These are only initvation .
7. Communication Methods: There are three method of communication by which proposal by made orally, written or by conduct general proposal are made orally or written.
8. Acceptable proposal: If the acceptance of the proposal is not possible then it wil not be a valid proposal it is essentials that accceptance must be possible.