This document discusses offer and acceptance in contract law. It defines an offer as when one person indicates a willingness to do or abstain from doing something to obtain another's assent. An offer must have acceptance of the other party, legal intentions, clear and definite terms, and communication of the offer. There are express offers made through words and implied offers made through conduct. An offer can be made to a specific person, group, or the public. Offers are terminated by lapse of time, rejection, revocation, counter-offer, or non-acceptance in the prescribed manner. Acceptance is when the offeree indicates a willingness to be bound by the offer terms. For a valid acceptance it must be communicated,

1. Created By Rafay Iftikhar

2. Chapter 2
Offer And Acceptance

3. Offer
Offer/Proposal
A Proposal / Offer is defined as "when one person
signifies to another his willingness to do or to abstain from
doing anything, with a view of obtaining the assent of that
other to such act or abstinence, he is said to make a
proposal."

4. Essential Elements Of Offer
1. Acceptance of the other party :
An offer is complete as soon as it is accepted by
the person to whom it is made.
2. Legal Intensions :
When an offer is accepted it must create a legal
relationship between parties otherwise it is counted as
mere or social promise which can not be enforced.

5. 3. Clear And Definite Terms :
The
terms
of
offer
must
be
definite, unambiguous and certain or capable of being
made certain.
4. Communication Of The Offer :
A valid offer is constituted as soon as its
communication is complete i.e. when it comes to the
knowledge of the offeree.
5. Non-Compliance Of The Terms :
Offer should not contain terms the noncompliance of which would amount to acceptance.

6. Kinds of Offer
Express
When an offer is expressed by words
spoken or written it is termed as an express offer.
Implied
Implied offer means an offer made by
conduct.

7. Offeree
To Whom offer is made
An offer may be made to
1. A particular person
2. A particular group or body of persons
3. The public at large i.e. whole world
Types Of Offers
Specific Offer
An offer made to a definite person or body of
persons
General Offer
When an offer is addressed to the whole world
, it is called general offer.

8. Termination Of Offer
An offer lapses after stipulated or reasonable time.
1. An offer lapses by the death or insanity of the offeror or
the offeree before acceptance.
2. An offer lapses on rejection.
3. An offer terminates when revoked.
4. It terminates by counter-offer.
5. It terminates by not being accepted in the mode
prescribed or in usual and reasonable manner.
6. A conditional offer terminates when condition is not
accepted.

9. Revocation
Revocation Of Offer :
An offer can be revoked at any time before it
comes to the knowledge of offeree / acceptor.
1. By notice of revocation.
2. By lapse of time.
3. By non-fulfillment of condition precedent.
4. By death or insanity.
5. By counter offer.
6. By the non-acceptance of offer acc. to the prescribed or
usual mode.
7. By the subsequent illegality.

10. Acceptance
Acceptance :
when the person to whom the proposal is made
signifies his willingness to be bound by terms of offer, the
proposal is said to be accepted.

11. Essential Elements Of the
Acceptance
1. Communication Of The Acceptance :
A valid acceptance is constituted when
its communication is complete i.e. when it comes
to the knowledge of the offerer.
2. Time For Acceptance :
A valid acceptance is constituted when
it is made within a described time or if not
specified than in a reasonable time.

12. 3. Mode Of Acceptance :
Acceptance must be according to the mode
prescribed. Only by the person to whom the proposal is
made.
4. Acceptance By Silence :
Acceptance can’t be implied or presumed from
silence.
5. Acceptance Before Revocation :
Acceptance must be given before the offer
lapses or before the offer is revoked.
6. Mere Acceptance :
Acceptance must be absolute and unqualified/
unconditional.

13. Revocation
Revocation Of Acceptance :
Acceptance of a proposal may be revoked at
any time before the communication of acceptance is
complete as against the acceptor but not afterwards. The
acceptance is binding on the acceptor when the letter of
acceptance actually reaches the proposer.

14. Created By Rafay Iftikhar