GROUP MEMERS

NAME
ROLL NO

Shaheen Priya Utpaal Pratik Suriya

50 54

Offer

Acceptance

Agreement

All agreements are contracts but all contracts are not agreements.

AGREEMENT
According to sec.2(e), every promise or set of promises forming consideration for each other.

OFFER
According to Sec.2(a), when a person made a proposal, when he signifies to another his willingness to do or to abstain from doing something.

EXAMPLE:Ram offers to sell a house to Naresh at a certain price. This is an offer.

ACCEPTANCE
According to sec.2(b), when a person made a proposal to another to whom proposal is made, if proposal is assented there to, it is called acceptance.

EXAMPLE:Ram offers to sell a house to at a certain price and Naresh accept this proposal. This is an acceptance.

EXAMPLE ON OFFER AND ACCEPTANCE

Ram proposes to sell his house to Naresh at a certain price, so Ram is the offeror and Naresh is the offeree. And if Naresh agrees to buy the house at the offered price, then Naresh becomes the acceptor. This result into the Agreement.

1. Who can accept an offer (proposal)? 2. Acceptance of an offer must be absolute and unconditional. 3. Qualified acceptance is a Counter- Offer. 4. Acceptance must be made within a Reasonable time. 5. Mode of acceptance. 6. Mental Acceptance is No at all in Law. 7. Acceptance must be communicated to the Offeror.

1. Who can accept an Offer (proposal)

Accepted only by the person or persons to whom it has been made. When offer made to a Class of persons, it can be accepted by any members of that class. If a proposal is made to the world at large, it can be accepted by any persons in the world, and there will be a separate contact between offeror and offeree. EXAMPLE:A sold business to B without disclosing the fact to his customers C.

2. Acceptance of an offer must be absolute and unconditional.

Even the slightest deviation from the terms of the offer makes the acceptance invalid. EXAMPLE:Mr. Anand offered scooter to Mr. Mohan. not fully paid at right time.

3. Qualified acceptance is a CounterOffer.

Under the Indian contract act, 1872, a qualified , conditional acceptance amounts to the rejection of the offer. EXAMPLE:A offered to sell his house for ` 12,000 to B. B said, Accepted for ` 10,000. This is not an acceptance but a counter-offer or counter proposal.

4. Acceptance must be made within a Reasonable time.

The acceptance must be made within a reasonable time, i.e. must be made before the offer is withdrawn or lapses. EXAMPLE:M applied shares in June, but allotment made in November.

5. Mode of acceptance.
a) b) c) d) e) f) Written words. Spoken words. Conduct. Post. Telegram. Prescribed manner.

6. Mental Acceptance is No at all in Law.

Acceptance to be complete must be communicated by the offeree to the proposer. EXAMPLE:A tells B that he (A) intends to buy Cs typewritter, but does not tell anything to C of his intension. There is no contract at all.

7. Acceptance must be communicated to the Offeror.

An Acceptance must be communicated to the Offeror only and not to his friend or his agent, otherwise no binding contract at all. EXAMPLE:posting of headmaster in school.

Case study.