OFFER + ACCEPTANCE = AGREEMENT

• An agreement to be a contract requires an offer

and acceptance.

• An offer is the first step in the formation of a

contract.

• Proposal – when one person signifies to another

his willingness to do or to abstain from doing
anything with a view to obtaining the assent of
that other to such act or abstinence, he is said to
make a proposal.
• For an Offer to be valid, the following are the essential elements which need to be
fulfilled:

• An offer must be certain and clear

• An offer must be made with an intention to create legal relations

• An offer must be communicated to the person to whom it is made – Lalman

Shukla v Gauri Dutt
EXPRESS OFFER
KINDS OF OFFER

• General and Specific Offer – Carlill v Carbolic Smoke Ball Co.

• OFFER AND INVITATION TO OFFER
Advertisement
Circulars
Preliminary inquiries
catalogs
ACCEPTANCE

• Acceptance is the next step of an offer.

• Acceptance takes place only when the offeree gives his consent to the terms of the
offer. Acceptance may also be express or implied.
• The following are the essential conditions for a valid acceptance-
Acceptance must be given only by the person to whom the offer is made.
Acceptance must absolute and unqualified/ unconditional
Acceptance must be given with in reasonable time and before the offer lapses or is
revoked
Acceptance must be communicated by the acceptor to the offeree.
• When communication of offer is complete?

• When communication of acceptance is complete?

REVOCATION OF OFFER AND ACCEPTANCE

• An offer can be revoked before its acceptance

• An acceptance can be revoked at any time before the communication of

acceptance is complete as against the acceptor, but not afterwards.
‘Please read this license carefully before using the software or accessing the listings contained
on the discs. By using the discs and the listings licensed to you, you agree to be bound by the
terms of this license. If you do not agree to the terms of this license, promptly return all copies
of the software, listings that may have been exported, the discs and the user guide to the place
where you obtained it.’ [the terms of the license agreement]
• TO BE CONTINUED