Sunday, March 8, 2009

CHAPTER NO.2 (OFFER AND ACCEPTANCE)

BUSINESS LAW
(KHALID MAHMOOD CHEEMA)

CHAPTER NO.2 (OFFER AND ACCEPTANCE)

Q. How can an offer be accaptable? OR (State rule of raelating to the accaptance & offer)?
Acceptance: It is contract act section 2 (b) defined in the following words "When the persom to who the proposal is made significe his consent to the propoal is said to be acceptd. "
Proposal & acceptance both can made by words & conduct, without the acceptance or proposal no agreement come into existance.
Example: Suppose MR Shah to offers t sell his hotel to MR Azam for 50 Lac. rupees .MR Azam accaeptes the offer to purchase the hotel for 50 Lac. This is called Acceptance.

Essesntials of valid accaptance
1)Acceptance of authorized person: Comunication of acceptance should be made by a person who has the authority to accepted .if unauthorized person provide the information it is i effective .
e.g: Mr.Akram sold his company to Mr A to Rs 10LAc. , Mr Ashraf now gives the suply order for the goods to Mr Akram,Mr A received to order & supplies . There was no contract b/w A & Ashraf.
2) Specific time: If time limit specific then acceptance must be given with in that period.
e.g: Mr Akram sold his company to Mr Nawaz for 50 Lac. & Mr Nawaz to pay a money during five year if Me NAwaz to failed to a pay a money the acceptance & proposal is un valid.
3)Acceptance before offer lapses: The acceptance is made offer the laps of offer then it is not a valid acceptance.Acceptance must be made before offer lapses.
4) Acceptance after comunocation : Before the communication is offer acceptance can not be given .Acceptance can not be valid if it is given before the communication.
5)Particular manner: Proposal or offfer nust be made with proper manner . A proposal should communicated with verbal or written from , So it can be accepted.
6) It may be Express or implied: When an acceptance is given by words spoken or written .it is called express acceptance. When it is given by conduct is called implied acceptance .
e.g: A wrote a letter to B to sell his cycle for 200 , B accepted his offer and sent a letter of acceptance . it is an expreess acceptance.

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