OFFER AND ACCEPTANCE - Business Law (BBS 2nd Year)

OFFER AND ACCEPTANCE

Define Offer:

            To offer means to present something so that it may be accepted or rejected. Offer is the proposal of the first party to another parties. NCA defines offer as " An offer is a proposal presented by one person to another with the intention of obtaining his assent for performing any work" And this types of proposal creates a legal obligation if it is accepted by the acceptance parties. A valid offer may be expressed or implied.

i) Specific and general offer: Where an offer is made to a particular person there is a specific offer and where it is made to the general public there is a general offer.

ii) Cross and counter offer: Where both parties make their offer to each other at the same time, there is a cross offer. Such types of offer is not a valid offer for the contract because to create a contract there must be an offer from one side and acceptance from other side.

Where an offered intends to accept the offer after alteration in any term of offer, there is a counter offer.

Note : ( the above types of offer is just for understanding purpose that may unnecessary for exam)

Rules Regarding the valid offer                               (important question)

i) Creating a legal relationship: the offered must have intention of creating legal relationship. After the acceptance of the offer it must create some legal obligation.

ii) Offer should not be certain and should be made to a definite person.

iii) Offer may be conditional: An offer may be made subject to conditional and that must be clearly conveyed to the offered. An unreasonable treatment and ignorance of offered to the conditions are not valid.

iv) Offer and of free must be communicated.

v) The offer can be expressed in different for written, spoken) and implied

vi) Offer is seeking acceptance of other party

vii) offer may be specific to the person or be to general public or globally.

viii) Offer should not contain the term that non-communication or rejection would amount to an acceptance.

ix) Invitation to offer is not an offer.

x) Advertisement is not the offer.