1. BUSINESS LAW& LEGAL
ENVIRON.
Lecture 4
(2/3/2015)
Presenter;
ISMATULLAHBUTT
PhD(S)

2. Business Law & Legal Environ.
The Proposal orOffer:
 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.
{ Sec. 2 (a)}
 This definition reveals the following three essentials of a ‘proposal’:
(i) It must be an expression of the willingness to do or to abstain from
doing
something.
I. The expression of willingness to do or to abstain from doing
something must be to another person.
II. The proposal must be made with a view to obtaining the assent of
the other person to such an act or abstinence.
 The person making the proposal is called Promisor (Offeror) and to
whom the proposal is made is called Promisee/Offeree/acceptor.
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3. Business Law & Legal Environ.
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Legal Rules forValid Offer:
1. An offer may be ‘express’ or ‘implied’.
2. An offer must contemplate to give rise to legal consequences and
be capable of creating legal relations.
3. The terms of the offer must be certain.
4. An invitation to offer is not an offer.
5. An offer may be ‘specific’ or ‘general’.
6. An offer must be communicated to the offeree.
7. An offer should not contain a term the non-compliance of which
would amount to acceptance.
8. An offer can be made subject to any terms and conditions.
9. Two identical cross- offers do not make a contract.

4. Business Law & Legal Environ.
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Lapse and Revocation of Offer:
1. An offer lapses after stipulated or reasonable time.
2. An offer lapses by not being accepted in the mode prescribed or if
no mode is prescribed.
3. An offer lapses by rejection.
4. An offer lapses by the death or insanity of the offeror or the offeree
before acceptance.
5. An offer lapses by revocation.
6. Revocation by non-fulfillment of a condition precedent to
acceptance.
7. An offer lapses by subsequent illegality or destruction of subject
matter.