Ser-Siz xopuy aLaNS, su2qgord wonseig | suonsond) sa | suonsond adAL aan0fgo | Amuns | $9105 onan +218 Jo ened Jo yeas 25 SpA | J JAS pda wes OU, wuz-t97 IPS predug ue jo swan “sy suoygoig_wonDeig | suousong) 3s | suonsoNd ‘aKy,annoatao | Armani | sang 9m J0 Sonn pue sey | poop 30 Lanta speanuag Jo soUEULI0d “Fp ‘suzigorg_jemperg | suogsoNd away. | suonsond) od4y, aansofqo | Areunung | sxouno-uoy, Aq afeg | sinoy vag fusjonuy senuog | Suedoxg jo fussed | sr pue urssossog ‘Cuodoug fareer Guuadong jo 2ysueay, “ep wrest suonsond) 9K nipuor pai secse suajgoig qvoHDesg | suonSIN sa] | suoRSoN) ad, 2apsego | Aammuns | (11 335) au. 01 Sones | (pu 6 598) oid AL | a1¥§ Jo snag Jo sEWADeFANS | 2[¥§ Jo DEMLED Jo wonEU aut Aauady Jo rpenqu0y “— satuNature of Contract CHAPTER CONTENTS 1D Object ofthe Law of Contract © Agreements a Very Wide Term The Indian Contract Act, 1872 1 Essential Elements of a Vaid Contract © The Acts Not Extaustve 1 Classication of Contacte © Nature ofthe Law of Contract ‘© Classieation According to Valisty © Law of Contract is Not the Whole Law of | 9 Classicaion According to Formation ‘Agreements Northe Whole Law of Obigations | __o Classieaton According to Performance © Law of Contract Creates jus in personam as | Q Classiieation of Contacts in English Law Distinguished from jus in rem ‘Summary 12 Defrition of Contract Objective Type Questions (© Consensus ad idem Test Questions © Obligation Practical Problems OBJECT OF THE LAW OF CONTRACT ‘The aw of contracts that branch oflaw which determines the circumstances in which promises made by the parties to a contract shal be legally binding on them. Its rales define the remedies that are available ina court of law against a person who fils to perform his contract, and the conditions under which the remedies are available Its the most important branch of business law. It affects al of us in one way ot the other Its, however, of particular importance to people engaged in trade. commerce and industry as ‘bulk of their business transactions are based on contracts ‘The law of contract introduces dfiniteness in business transactions. Sir William Anson observes in this connection thatthe law of contact is intended fo ensure that what a man has been led to expect shall come to pass, and that what has been promised to him shall be performed. In simple words, it ‘may be sai thatthe purpose ofthe law of contract is to ensure the realisation of reasonable expectation ofthe parties who enter into a contrat. THE INDIAN CONTRACT ACT, 1872 ‘The law relating to contracts is contained inthe Indian Contract Act, 1872. The Act deals with (1) the ‘general principles ofthe law of contract (Sees. | to 75), and (2) some special contacts only (Sees. 124 to 238), The first six chapters ofthe Act (which embody the general principles) deal with the different stages inthe formation of a contrac, its essential elements, its performance or breach and the remedies for breach of contact, The remaining chapters deal with some of the special contracts, viz. indemnityON 6 Law of Contract + General Principles of Law of Conn and guarante (Chapter VII (Secs. 124 to 147) bailment and pledge [Chapter IX (Ses. 14819 1g and agency [Chapter X (Sees. 182 to 238)}: M The Act doesnot affect any usage or custom of trade. (Sec. 1, para 1). ‘The references to Sections in Chapters to 12 are to the Indian Contract Act, 1872, unig, ‘otherwise stated ‘The Actis Not Exhaustive ‘TheTadian Contract Act does not profes tobe a complete and exhaustive code. It deals with the gener principles ofthe law of contrat and with some special contracts only. Some ofthe contacts not day ‘ith by the Act are those relating to partnership, sale of goods, negotiable instruments insurance, bil gp lading te. There are separate Acts which deal with these contracts Nature of the Law of Contract, ‘The law of contract differs from other branches of law in an important respect. It oes not ly down 3 number of rights and duties which th law will enforce itconsiss rather ofa numberof imiting principe, subject to which; the partis may create right and duties fr themselves which the law will uphold. The parties toa contract, in a sense, make the law for themselves. So long as they donot infringe some lea prohibition, they can make what ules they ike in respect ofthe subject-matter oftheir agreement, andthe law wil give effect to their decisions [The English Law of Contract by Anson, 22nd ed, 1964, p. 3] Law of Contract is Not the Whole Law of ‘Agreements Nor the Whole Law of Obligations ‘There are several agreements which donot give rise to legal obligations. They ae, therefore, aot ‘contracts. Similarly, there are certain obligations which do not necessarily spring from an agreement, 8. () torts or civil wrongs, (i) quas-contrats, (i) judgments of Courts, These obligations ae not, ‘contractual in nature, But even then they are enforceable. Salmond has rightly observed thatthe law of contac is “not the whole law of agreement, norit isthe whole law of obligations. I iste law of those agreements which create obligation, and those obligations which have their sources in agreement.” Itexcludes from its purview all obligations which are not contractual in nature and agreements which ae social in nature, Law of Contract Creates jus in personamas Distinguished from jus in rem Jasin rem means aright agains or in respect of hing; usin personam means aright against orn respect ofa specific person. A ju in rem is available aginst the world at large; a jus in personam is available only agains particular persons Examples (2) Aowes certain sum of money to B. Bhas aright to recover this amount rom A.This ght can be exercised oly by Band by none else against A This ight of Bis as "persona. (0) Xistho omer of plot olland, He has aright to have quot possession and enjoyment of that land against every member ofthe publ. Smlary every member ofthe publ under anclgnion net dtu Xt possesion a eoymant. Ts Mot 8a jus in rom DEFINITION OF CONTRACT ‘A contract is an agreement made between two or more parties which the law will enforce. See. 2 (8) defines contract as an agreement enforcable by law. This definition is based on Pollock's definition hich is as follows : “Every agreement and promise enforceable at law isa contract."Nature of Contract 1 Sir William Anson defines contract by which igh ae acquired by one or more to onthe part ofthe others, ‘According to Salmond, a contra - Agreement and its Enforceability. If we analyse the definition of contract we find that a contact «sentially consists of two elemens, viz, (1) agreement, and (2) ils enforceabiliy by lev. ding OF, We Poe is a continuing offer. a od, 5 * Rate a rs mig cing fe The op madi the effect that as and when the goods i an aan nc pavon who submited tender and each time a distinct contrat is mag, ee eae saureacmenee Sienesoamennmateem meres veces IS men hrm He nue en ae Scenic a Meenas aa ‘Special Terms ina Contract Where any speci tems ar toe included in a contact, these must be duly brought othe notice of flere at the ime when the proposals made Its not done and ifthe contract iy eae ino. effec willbe bound by them Also, these ers should be presented in sucha mansrde ‘ ressonable man can become aware of them before he enters into @ contract. Examples « Kecetammey se won cre mgr tea yoo isco er oie cnt See mnige! Semen tanner pe the ticket is sued the conditions subject which does no alter the legal posi bod ‘hem or not. The fact that he didnot orcoeld soe Examples (2) Pdeposied a bag in heen ak OOM of om i it on whl “sunny ition. On the face of he ticket, £24.50 as its value. Held, pace Pakage to 8 gre art eng ny £0 Thbay aslo end Pea (© Z.17eed 1 purchase a mace OSE Ral Ga Henson Ne Back of the tcl Sean sree cnn ony Sed we 7,2 CP. those clauses Ea jamall print which poor" to the effect. The contract me mb ate a ta Hl Pas nyOffer and Acceptance a (4. T.atady wto could not road, took ticket from a rway company. On the face of the ticket was witten “For conditions see back’, One ofthe condtions absolved the ralway company from ably fr personal njurias to passengers. Twas injured by 2 allway accident. Held, she was bound by the conditions and could not recover damages [Thompson v, LM. &S. Rall Ca, (1990) 1 KB. 41}, ‘fconditons are printed on the back of a ticket, but there are no words at all on the face of itt draw the attention of the person concemed to those conditions, he is not bound by them. However. ifthe conditions are contained in a voucher or receipt for payment of money which is normally nat supposed to contain the conditions of the contract, they do not bind the person receiving the voucher or receipt ‘Example, Creda deck chair rom Municipal Counc He ald hie of 2 for 2 sessions of 3 ‘hours, He was gven a ket which he putin his pocket urreed. The Scket contained the floning ‘onction: “The Counc wil not be Hable for ary accident or damage ang from hie of chal ‘When C satin the chai, broke and injure him Hold the Councl was lable o Pin damages for Persona injuy Sleser, LJ. obsorvc in my opinion his ket sno more than a recep ands ‘ute trent from arlvay ticket which contains upon ithe ens upon which a ralway company ‘2g7ees fo cary passengers" [Chapletonv. Bary Urban Disict Counc (1940) 1 KB, 252}, Ordinarily, the acceptance of a document containing the contract implies acceptance of all the {terms contained in the document. Exceptions are, however, made in the following cases 1. When there is a misrepresentation or fraud. 2. When the notice of the terms is insufficient, ‘Example. A purchased a ticket which had on its face "Dublin to Whitehaven”. On the back ‘ofthe ticket, there was a term thatthe carying company was nat lable for losses of any kind, But there was nothing on the face ofthe tick to draw As notice tothe terms and ‘conditions onthe back of he ticket. Hela, A was not bound by these terms and conditions [Henderson v. Stevenson, (1875) LA. 2 HL. App. Cas. 470) 13, When there is nothing to lead the purchaser of a ticket to believe that there are add Cross Otters nal terms. ‘When two parties make identical offers to each other, in ignorance of each other's offer, the offers are cross offers. In such a case, the Court will not construe one offer as the offer and the other as the ‘acceptance and as such there can be no concluded contract [Tinn v. Hoffmann, (1873) 29 L.T. 271], ACCEPTANCE ‘contract emerges from the acceptance of an offer. Acceptance isthe act of assenting by the offeree to an offer. In other words, it isthe manifestation by the offeree of hs willingness to be bound by the terms of the offer. It is “to an offer what a lighted match is to a grain of gunpowder. It produces something which cannot be recalled, or undone”. This means when the offeree signifies his assent to the offer, the offer is sai to be accepted. An offer when accepted becomes a promise (Sec. 2(8] ‘Acceptance may be express or implied. It is express when it is communicated by words, spoken ‘or written or by doing some required act. Ii implied when it isto be gathered from the surounding circumstances or the conduct ofthe partes, Examples (a) At an auction sale, S is the highest bidder. The auctioneer accepts the offer by striking the hammer onthe table. This i an imglied acceptance. (6) A.widow promised to sete some immovabe propery on ha nice ithe nice stayed with her In her residence. The niece stayed with her in her residence til her death, Hel, the niece was ented tothe property {V lao v- A. Rao, (1916) 90 Mad. 60,ry Law of Conract + General Princes of Acct wn i Ahan a tacit (implied) formation of intention 4 te ication thc nat ene vet (pe) cto WOT Spoken pg eo, ~~ C seunned seeps Ao mae Wocan Act? tate pension ithe, ea eater Of We mia Fo a Sines ats ay oespne re ae Th a yo pebi se to make a contract with, B cannot substitute himself for withou, trays et fo Oct eee SS sw Bc rt oss, Bouton supped the goods even ough the order was n ceases = Ss wn Sat ne sy Su oe seat i arena orton fon Scan uns eee ben apn an aap ay Soca ssn eas 2 aod to ‘Under a quesicontract, Bouton can however recover the goods trom Jones, cceptance of General Offer. When an offers mad to world at large, any persons to Whom meaner {Carlillv. Carbolic Smoke Ball Co., (1893) 1 Q.B. 256). be oy LEGAL RULES AS TO ACCEPTANCE maseeTaneof anor very eens ofa cnet To be gly fn, its iy following condions: {- Hemust be Absolute and Unqualified, ie, It must Conform with the Offer. An aco inorder tobe binding, must be absolute and unqualified [Sec 7 (1)] in respect ofall arties are not ad idem on PMS ft ‘offer, whether material or immaterial, major or minor. Ifthe, all matee Concerning th offer and acceptance, there is no contract, (1930) WN. 189), omnes (4 Neto na rau attinsare ronerene en ‘warranted the horse quiet in double, Vere we soe . [Jordon Norton, (1898) 4 M. & W. 155}. ames. Hod there smo me AEme tees 2. It must be Comawonleats) to the Offer To conclude a contract between the parties; 8 soceranes must be tof thee SOM perceptible form a mere resolve or mt oranda anal ev 6S nro ae en a Ge a a sare net are conic, ven ¥ C's wing mar 18 C noting ot is intention, Ter"? 80.000". B replies,“ wil purchase itor ‘amounts o a counter tien ror,Offer and Acceptance It must be Given Within a Reasonable 23 (©) Fottered o buy his nephews hors or £90 saying: rs saying" | hear no moce about shall fr avctonee B® 8 ne at 30 The nephew ed not wie to tal but he ti (© Reta agreement relating othe supply of coal was sent othe manager of ay Goma fr his acceptance. The manager wot the Word pproved sn pte {Fat inthe crawor of his abo intending to send ito te companys sober formal contacto be drawn up. By some overage document remained a fhe RavwE Hels. here was no conc (Brydon Mevopeltan Fal Co, (167) 2 In some cases, the offeror may dispense wit the communication ofaeeptance 1 happens when the perfomance of cern conditions takes place, or some requzed ats done (See 8) For example, in Carll v. Carbolic Smoke Balls Co, (1893) 1 QB. 286, where Carll used the smoke balls ofthe company according tits directions and cotaced influenza it amounted to acceptance ofthe offer by doing the required act and she could claim the reward. ‘It must be According to the Mode Prescribed or Usual and Reasonable Mode. If the acceptance is not according tothe mode prescribed, or some usual and reasonable mode (where ‘no mode is prescribed) the offeror may intimate tothe offer within a reasonable time thatthe acceptance is not according to the mode prescribed and may insist thatthe offer must be accepted in the prescribed mode only. IFhe does not inform the offeree, he is deemed to have accepted the acceptance [See. 7 (2) Example. A makes an ofr to B and says: you accept the ofr, reply by wire”. sends ‘he reply by post. willbe avail acceptance unless informs Bhat he aoceptance snot according to the mode presebed. ime. If any time limit is specified, the acceptance ‘must be given within that time. Ino time limits specified, it must be given within reasonable time, Example. On June 8 I offered to take shares in A company. He received @ lter of ‘acceptance on Noverber 23. He refusedto take the shares. Held, Mwas ented to rehise ‘as is offer had lapsed as the reasonable period during which It could be accepted had lapsed [Ramsgate Victoria Hoel Co. v. Montefiore, (1886) LA. 1 Ex. 109 . It Cannot Precede an Offer. Ifthe acceptance precedes an offer, it is nota valid acceptance and does not result in a contrac. ‘Example. Ina company, shares were alloted toa person who had not applied for them, ‘Subsequent, when he applied for shares, he was unaware ofthe previous allotment. The allotment of shares previous to the application is inva, It Must Show an Intention on the Part of the Acceptor to Fulfil Terms of the Promise. If ‘no such intention is present, the acceptance isnot vali, [It Must be Given by the Party or Parties to Whom the Offer is Made, It Must be given before the Offer Lapses or hefore the Offer is Withdrawn. It cannot be Implied from Silence. The acceptance of an offer cannot be implied from the silence of the offeree or his failure to answer, unless the offeree has by his previous conduct indicated that his silence means that he accepts-b SE) —————_ es General Principles of Law of ¢ ny Law of Contract * 24 11 doit hea om youn seve gay vane myer 1000.11 HOM 70 amt gery H tp enon, ‘eee lo Gn 0 ced ere 8 She en erly Acceptance En Likes infomation ros ror Peon sie acceptane iinetetve in a owes Le, (1908) 24 TLR. 608) Accoptance ubjectto Contract nee sujet to contact” a subject formal cont” of“, Sie ins inthe negotiation Age andthe pari” score mote wet sem ane eg a nr emia mace ane ed Sai ea 8 2 i amo tee ere Pactra Spel er Setedoes ee ge Ee eS Ses arene Bocas ned are exchanged. gubjact toa contract”. The terms of the formal is countorpar. E posted his counterpart but post his counterpart. Held, there was no (1948) Ch. 93 wh the separate counterparts 50 sit Example, E bough certain property from B contract were agreed and each pary signed is inthe meantime changed his mind and didnot binding contrat between the parties (Eccles v. Bryant ‘Agreement to Agree in Future Fe parties have not agreed upon the terms of ther contract, but have made an agreement to agresin future, there is no contract. Lord Wensleydale observed that “an agreement to be finally settled mx comprise all the terms which the partes intend to introduce into the agreement. An agreement fo enter into an agreement pon terms to be afterwards settled between the parties isa contradiction in tems. is absurd o say that a man enters nto an agreement til the tems of agreement are setled; until those toms at setted, he isa liberty to retire from the bargain” [Ridgeway v. Wharton, (1857) 6 H.L.C. 238]. Examples (a) An acess was engaged by a theatical company fora certan period, One ol he ‘cre he gaa was le oy was sown Lode, sh va ee eed upon. Hel thre was no cont [Lote Monta! Gas Co x. Vso, (600) A.C 505, discussed inthe preceding Chapt. (6 Foley Cassin, Conca i, (894) 2K. osu ear ba Cab COMMUNICATION OF OFFER, ACCEPTANCE AND REVOCATION ‘cn contacting purse fc wher ania 1 Be completed must be omni the moment the ofete ives his abslue nd ungulifed necro io offeror. When the ars ae aa dane aid the offer and acre go) ro a through pos, by le rele, the res conned in Sex 9 to 3 pln: Tee nes follows:‘offer and Acceptance 25 Mode of Communication (Sec. 3) ‘The communication of offer, its acceptance and their revocation respectively are deemed tobe made by any (@) act, oF (9) omission, of the party offering, accepting or revoking. Such ct or omission must Shawever" have the effect of communicating such offer, acceptance of revocation. In other words, offer, acceptance oF revocation may be communicated by words spoken or written, or by conduct. Thus instalation ofa weighing machine ata pubic place san fr, puting ofa coin in he slot ofthe machine jie accepance of the offer, and switching ofthe machine amounts o revocation ofthe offer. ‘When is Communication Complete (Sec, 4) ? Communication of ofr [Se 4, par}. The communication of wn afer i complete when it comes to the knowledge ofthe person to whom its made ‘Example. A proposes, by attr, to sella house to Bat a certain price. The eter is posted fn 10h July. I reaches Bon 12th July. Loe ‘The communication of the offer is complete when B receives the letter, ¢., on 12th July Communication of acceptance (See. 4, para 2). The communication of an acceptance is complete ~ as against the proposer when itis put into a course of transmission to him, so as to be out of the power of the acceptor ; 4s against the acceptor when it comes to the knowledge of the proposer. Example, 8 accepts A's proposal, inthe above case, by a letter sent by post on 13th instant. The letter reaches A on 15th instant. The communication of the acceptance is Complete, as against A, when the leter is posted, Le, on 13th, a8 against B, when the letter is received by A, ie. on 15th, ‘Communication of revocation (See. 4, Para 3), Revocation means “taking back” “recalling” or “withdrawal”. It may be a revocation of offer or acceptance. The communication of a revocation is complete — as against the person who makes i, when itis put into @ course of transmission to the person to whom itis made, s0 as to be out of the power ofthe person who makes it; 1s against the person to whom itis made, when it comes to his knowledge. Examples (2) A proposes, by a eter, to sell a house to B at certain price. The letters posted on ‘sn May, reaches Bon 19th May. A revokes hs offer by telegram on 18th May. The {elogram reaches 8 on 20th May. The revocation is complete as against A when the telegram is despatched, .e,,on 18th tis complete as against B when he receives, it,Le.,on 20h, (6) Toltered, by letter of October 1, o sell goods to Bin New York. Breceived the offer ‘on 1th and immediately telegraphed his acceptance. On 18th, T wrote a letter ‘evoking his offer, The letter was received by B on 20th Held. the revocation was of fo effect unl it reached B. A contract was made on 11th October when B accepted the offer [Byrne & Cov. Van Tienhoven{1880) 5 C:PD. 344]. Lindley J observed in this case, “A state of mind not notified cannot be regarded in dealings between man ‘and man, and thal an uncommunicated revocation is, fr all practical purposes and in point of law, no revocation at al. ‘Time for Revocation of Offer and Acceptance (Sec. 6) ‘Time for Revocation of Proposal (Sec, 5, Para 1), A proposal may be revoked at any time before the communication ofits acceptance is complete as against the proposer, but not afterwards.us Law of Contract + General Principles of Law of Contract eked a tine x So $, Para 2} An acetanc y Be - ete as against the acceptor, but not afterwards, ‘Time for revocation of accep ‘before the communication ofthe acceptance is comph Example Apo 1 posted on ite sont by pst set tis howe to B.The ater forte men Baccus propa! eters pot on te 4 The tr teaches A onthe 6h Amay revoke his offer at any time before post his eter of aeceptance, He, Ath, but not afterwards ‘Bray revoke his acceptance at any tims before the leter of acceptance reaches A, fe, 6th but not afterwards ret ce tot pa Seep a iy ce chsp eter ste heme er et Sea me chaperone es PINE oma reer ee eas pelea eeereto minicar stint ae serene Coeeeene Contracts overTelephone or Telex or Oral Communication ‘Modem busines is mostly done through telephone or telex. A contract by telephone or tlex has the sue efectos an oral agreement entered into between the parties when they ae face to face, But the offeree must make sue that his acceptance is properly received, je, heard and understood by the offeror [Kanhavalal v. Dineshwara Chandra, ALR. (1959) MP. 234). Example. A makes an ofr to 8 across iver ora courtyard. Bshouts back accepting As oer, but A doesnot hear B's rpt as itwas drowned by an aircraft ying ovemead. There iso contact at that moment. I Bwishes to make a contract, ho must walt il the arcratis ‘220e and then shout backs acceptance so that can Hear what says, Untl Anoars ‘ep tere is no cont. ‘An example given in Ente. Miles Far Bast Corporation (195: is wal poration, (1955) 2ANE.R, 493s enlightening “Now tke case where two people make a contract by telephone, Suppose, fr instance, that 1 make an offer to a man by telephone, and inthe middle of his reply, the line goes “dead so that 1 do not bear hit words ofaceplance. There is no conta hat mament. The other san may nt know the petise moment when he lin fied, But he wl know tat the lee emerson va sty ano ea pepe sully somethings end wisest make a conte i eft cnveraton fhe vi contrac, he must therefore, gt trough again so The principle of the Envores case was endorsed by the S Girdharilal, ALR. (1966) 8.C. 543. by the Supreme Court in Bhagwan Dass Kedia v. When Does an Offer Come to an End? ‘An offer may come to an end by revocation or lapse, or rejection,offer and Acceptance ” Revocation or Lapse of Offer. Sec, 6 deals with various modes of revocation of offer. Aecording to it, ‘an offer is revoked ~ 1. By communication of notice of revocation ‘complete as against him (Sec, 6 (1). Example At an auction sale, Amakos ne ‘before the fall of the he ote by the offeror at any time before its acceptance is highos bid for Bs goods He withraws the bid hammer. The ons been revoked blr le accopance, By lapse oftime iit isnot accepted within the prescribed ime. Ithowever, no ime is presri it lapses by the expity ofa reasonable time [Sec. 6 (2) " a Examples (2) Ramsgate Vera Hote Cav Parwoat Vt Monotfr, (1868) LR 1 Ex. 109, discussed carer (©) $ ofered to sot woo to 8 on Thursday and agreed to ge him tree days! tne to cop: accepted tha fe on ond, batty a tne Sache we Fel ‘he aller hac lapsed (Heed. Dlggon, (1828) 9M. & P87) 3. By non-ulflment by the offre ofa condition precedent o acceptance (See. 6 (3). Example. S sor, agrees o sl certain gods subject othe conden tha the ber, paysthe agreed pice bee cra data Bs pay pc bya a he fe Stands revoked 4, By death or insamity ofthe offeror provided the offeree comes to know of i before acceptance {Sec. 6 (4)]. If he accepts an offer in ignorance of the death or insanity ofthe offeror, the sccepiance is valid In adition othe above eases dealt with in Sec. 6, an offer is also revoked — 5. Hacounter-offer is made oit{U.P State Electricity Board. Goel Electric Sores, ALR. (1977) AL 494, 497). Where an offer i accepted with some modification in the terms ofthe offeror With some other condition not forming pat ofthe offer, such qualified acceptance amounts toa counteroffer. Examples () Wolfered to sel a farm to H for © 1,00. H ofered £950, W refused the ofr ‘Subsequenly, 1 offered to purchase the farm fr & 1,000. Held, there was no contact es Hb offering £980 ed jected th orgal offer The couteroter a ‘proposal amounts tits eecion (Hyde. Wrench, (1840) 3 Bea. 384 (i) An oferee agred to accept ha the quatty of good offered bythe oir onthe tame terms and condons as would have appled tothe ful contract. Hel, here ‘was no contact as there was a courter-fletothe ofr [Tan . Hofman, (1873) 29 unr. 6. Ifan offers not accepted according to the prescribed or usual mode, provided the offeror gives notice tothe offeree within reasonable time thatthe acceptance i ot according othe prescribed or usual mode, If the offeror keeps quiet, he is deemed to have accepted the aceptance [Sec. 7 @)]. 1. Ifthe la is changed, An offer comes oan end ithe law i changed so as to make the contrat contemplated by the offer illegal or incapable of performance, ‘An offer can, however, be revoked subject to the following rules: 1. lean be revoked at any time before its acceptance is complete as aguns the offeror. 2 Revocation takes effect only when itis communicated tothe ofeee. 3. If the offeror has agreed to keep hs offer open fora certain period, he can revoke it before the expiration ofthat period only ~8 Law of Conract + General Princes oy 1, 4 (cite oe bas inthe mease not been accepted, oF Sy (8) ifthe is consideration fr keeping the offer open. : Rejoin fe Anos may eet the of One he oe that Be aa ig ic Retin ofthe ofr may be expres or implied. Ney Exes Rejecton The ffece may jet the ole expressly, Le, by words writ retin i ete ony when note of reectin reaches the offeror, mpi Rejection. Rejection fhe fei implied by lw — (o) rth ore makes countrafer ( . rench, (1840) 3 Bea. 334) (@) where the offre gives conditional acceptance Varden v. Norton, dscusye Cape) ling OF okey by rs, SUMMARY OFFER facts wig esters clybtn e ent : inte ett SSSI near age ct en ay rn S ances ofthe case, It is specific when it om general when itis made tothe word at age. In is made toa te rms age neon cal pecan Pea comes this kaon sitar ehisknoniege Se. 0) terms foe These mst teri he sco il not band 2 Fhe te ‘esd acon at 4B ich ems, Were te ete te ace ftete sccepor knows tat there ace some ei a 2.1 must be os etd ote oot i I en a eth ae eis general itmay eee Oe. 7. I must be given bye se! menee, Pied by any person, 8. Itmustbe givenbe*Offer and Acceptance + Acceptance subject contract. Anace + Agreement to agree in future. Ifthe age in fr, there so contact. 29 lance sujet to contaetnens tht the patie do oti ‘itiomalconerepepeeg aumento hatte panies do notinendo bbound ates have ot red upon the em of her agreement ut hve agreed to OBJECTIVE TYPE QUESTIONS ‘Multiple Choice Questions: 1. Which be fotoning este nan off (@) Adeciaionotinenton nS? © taint {0 Andersen fring revardto anyone vo finds odo oft serac (Anos mao 2. Amecieofercan be cee by - (@) my pn. (0) ay fiend of ee {6 thepeneno whom (2) any Sendo ec. 2. Ate of sree suit amped and duly adres prin corse of ansmision Theres {@) vexnmct dbl athe opto of eaemae {0) scant oblate option f offer (© cours tall @ saideranct 4 Recon bratty Ber () any toe (0) befreth ener of scepter he ofc, {6 sere leer of expan aces hole (@ before the dex of th ceptor 5 Atbrerieneat sl a ng by extn i made, (@) anofer (@) aninvitation oof, (6 aoofferatall, —(@) s contact, (6) anobiigaion 6, On the fice of th tcket for a journey the words "or conditions se back” are printed in small print. The passenger = (@) is bound by the conditions whether he takes care toread them or nt (©) isnot bound by the condos, (6) may ot take note ofthe conton. (none ofthe above 11. Amofferis made to Man in crowd, It (@) canbe accepted by him alone. (b) may be aceped by any penn who bears it (6) may be acceped by his rote. (day be accepted by his fens 8 Anscceptance isnot according tothe mode prescribed but the oflerer decides o keep quiet. In such a ease there is (@) aconract (@) avoidable cont, (@) anunenforceable contact, (6) no conte, 9, Theresa counteroffer when — (0) the offre pves conditions for aceptanee or introduces fresh term in acceptance, (©) theoteer makes esh offer, (6) theoleree makes some guy (@) the ofece axeps 10, Amakesanofere Bon 1th by alter which reaches ‘Bon 12h B poss eter of cepance on Ith which ‘aches on 160, The communication of scepance is complet as agains on ~ (@ 126, @) th © 16t (@ 10m. 1. Anoffersecepted without knowledge does not confer ny legal ips on the acepioe. (@) Treas the offer anna be accepted without its anole (@) Fale as theres osu egal povisiondeision indhinregad, 12, 4, by eter dt 25* Des 1996, offers el his house {0B fort 10 aks, The ltr reaches Bon 27" Dee. 1998, who posts his aseptnce on 28% Dec. 1998 hich reaches 4 on 30% Des. 1998. Here, the ‘communication of oe complets 00 (@) 25% Dee 1999 (0) 27° De. 1999, (©) 28"Dec, 1999 (4) 30° Dee. 1999 13. Inthe above question No. 12, the cormmaniaton of acceptance is complete agaist A on 28* De, 1998, andapinst B00 (@) 25% Dec. 1999 (6) 278Dec. 1999 (6) 28" Dee, 1999 (@) 30*Dee. 1999 State whether the following Statements are True or False: 1, Whenan offrismadeto the wordt larg, iti called specifier. 2 A socal invitation, if it is accepted, creates legal ‘eltios. 3. Am advertisement fr an ation sle amounts an ‘offer to hold such action ale 4. An offer may contin tem the non-compliance of ‘which may amount to acceptance. 5. Acceptance one made canot be evoked atl 6. Aspecitic offer may be accepted by anyone 7. Ifthe acceptance isnot according the mode prescribed andthe feo does otinfom hoffe, eis deemed tw have accepted he aceptance,