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Lecture 7 Spring 15

This document provides an overview of a Business & Labour Law course taught by Syed Salman Ahmed. The course will cover topics such as Contract Law, Offer or Proposal, Acceptance, and Legal Rules as to Offer. Assessment will include quizzes, a midterm, final exam, project, and presentation. The instructor's qualifications are also listed.

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salman
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41 views21 pages

Lecture 7 Spring 15

This document provides an overview of a Business & Labour Law course taught by Syed Salman Ahmed. The course will cover topics such as Contract Law, Offer or Proposal, Acceptance, and Legal Rules as to Offer. Assessment will include quizzes, a midterm, final exam, project, and presentation. The instructor's qualifications are also listed.

Uploaded by

salman
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Business & Labour Law

Recommended Text Box


Business Law by Khalid Mehmood
Cheema
Course Assessment:

Quizzes: Minimum 5 quizzes


10 Marks
Mid Term
25 Marks
Final
40 Marks
Project
20 Marks
Presentation
05 Marks

Syed Salman Ahmed


[email protected]
0300-3610026
Yahoo Group Name : bllfall15

Group E-Mail : [email protected]


MBA (Marketing & Finance) (Silver Medal) IBA
Karachi
MEM (Quality Management) (Silver Medal) NED UET
Karachi
MBA (MIS) (Silver Medal) IBA Karachi
MAS (HRM) UoK Karachi
MA (Economics) UoK Karachi
PGD (CIS) (Gold Medal) UoK Karachi
B E (Aerospace) NED UET Karachi
LLB UoK Karachi
Teaching Experience : 26 Years

Contract Law
Offer or Proposal

At the inception of every agreement,


there must be a definite offer by one
person to another and its unqualified
acceptance by the person to whom the
offer is made.

An offer is proposal by one party to


another to enter into a legally binding
agreement with him.

When one person signifies to another


his willingness to do or to abstain from
doing anything, with a view to obtaining

Contract Law
Example of Offer or Proposal

A sys to B, Will you purchase my car


for Rs.5,000?. In this case, A is making an
offer to B as he signifies to B his
willingness to sell his car to B for Rs.5,000
with a view to obtaining Bs assent to
purchase the car.

Contract Law
Definitions

Offeror, Proposer or Promisor. The


person making offer or proposal.

Offeree or Proposee. The person to


whom the proposal or offer is made.

Acceptor or Promisee. When the


offeree accepts the offer, he is called the
acceptor or promisee.

Contract Law
Express offer

When offer is given to another person


either in writing or in oral.
For example : When A says to B, Will
you purchase my house at Lahore for
Rs.2.5 Million?
For example : When A advertises in a
newspaper offering Rs.50 to anyone
who returns his lost dog.

Contract Law
Implied offer

When offer is given to another person


neither in writing nor in oral form. It is
implied from the conduct of the parties or
the circumstances of the case.
For example :
When a transport
company runs a bus on a particular route,
there is an implied offer by the transport
company to carry
passengers for a
certain fare. The acceptance of the offer
is complete as soon as a passenger
boards the bus.

Contract Law
Implied offer
For example :
When a weighing
machine is installed at a public place,
there is an implied offer by the owner of
the machine. Any one putting the
required coin in the slot of the weighing
machine can accept the offer.
Specific offer

When offer is given to a specific person.


It can be accepted only by the person to
whom it is made.

Contract Law
General offer

When offer is given to entire world at a


large.
For example : A company advertised in
several newspaper that a reward of
Rs.10,000 would be given to any person
who swims the River Indus near Kotri
Bridge and come back swimming on the
same day.

Contract Law
Cross offer

When two parties make identical offers


to each other, in ignorance of each others
offer, the offers are cross offers. In such a
case, the court would not be able to
interpret one offer as the offer and the
other as the acceptance and as such there
can be no concluded contract.

Contract Law
Legal Rules as to Offer
1. Offer must be such as in law is
capable of being accepted and giving
rise to legal relationship. A social
invitation, even if it is accepted, does not
create legal relations because it is not so
intended. An offer must be such as would
result in a valid contract when it is
accepted.

Contract Law
Legal Rules as to Offer
2. Terms of offer must be definite,
unambiguous and certain. It shall not
be loose and vague. If the terms of an
offer are vague or indefinite, its
acceptance cannot create any contractual
relationship.
For example : A husband on leaving
his wife promised to pay her Rs.1,500 a
week so long as I can manage it. It
was held by the court that the
vague or
discretionary terms of the arrangement

Contract Law
Legal Rules as to Offer
3. An offer may be distinguished from:(i) A declaration of intention and
an announcement. A declaration by a
person that he intends to do something
gives no right of action to another. Such
a declaration only means that an offer
will be made or invited in future and
not that an offer is made now.
For example : An advertisement
for a
concert or an auction sale does not
amount to an offer to hold such concert

Contract Law
Legal Rules as to Offer
3. An offer may be distinguished from:(ii) An invitation to make an offer
or do business. Display of goods by a
shopkeeper in his window, with prices
marked on them, is not an offer but
merely an invitation to the public to
make an offer to buy the goods at the
marked prices.
For example :
In a self service
system, contract is made, not when
customer selects item, but when cashier

Contract Law
Legal Rules as to Offer
4. Offer must be communicated. An
offer, to be complete,
must be
communicated to the person to whom it is
made.

Unless an offer is communicated to the


offeree by the offeror, there can be no
acceptance of it.

An acceptance of the offer, in ignorance


of the offer, is no acceptance and does not
confer any right on the acceptor.
For example : S offered a reward to
anyone
who returned his lost dog. F

Contract Law
Legal Rules as to Offer
5. Offer must be made with a view to
obtaining the assent. The offer to do or
not to do something must be made with a
view to obtaining the assent of the other
party addressed and not merely with a
view to disclosing the intention of making
an offer.
6. Offer should not contain a term the
non-compliance of which may be
assumed to amount to acceptance.
The man cannot say that if acceptance is

Contract Law
Legal Rules as to Offer
For example :
Where A writes to B, I
will sell
you my horse for Rs.5,000 and if
you do not reply, I shall assume you have
accepted the offer. There is no contract
if B does not reply. B is under no obligation
to speak.

However, if B is in possession of As
horse at the time the offer is made and
continues to use the horse thereafter, Bs
silence and his continued use of horse
amount to acceptance on his part of the

Contract Law
Legal Rules as to Offer
7. A statement of price is not an offer.
A mere statement of price is not construed
as an offer to sell.
For example :
Three telegrams were
exchanged between A and B.
1. A to B: Will you sell your pen?
Telegraph lowest cash price.
2. B to A: Lowest price for pen is
Rs.900. 3. A to B: We agree to buy pen for
the sum of Rs.900 asked by you.
It was held by the court that there
was no concluded contract between

Contract Law
Acceptance

When a person made a proposal to


another and if proposal is assented to by
the one whom proposal is made, it is
called acceptance.

Acceptance is the act of assenting by


the offeree to an offer.

In other words, it is the manifestation


by the offeree of his willingness to be
bound by the terms of the offer.

Acceptance may be express or implied.

Contract Law
Express Acceptance

Acceptance is express when it is


communicated by words spoken or written
or by doing some required act.
For example :
A widow promised to
settle some immovable property on her
niece if the niece stayed with her in her
residence.
The
niece
gave
her
acceptance of the offer and stayed with
widow in her residence till her death. The
niece was entitled to the property as it
was a express acceptance.

Contract Law
Implied Acceptance

Acceptance is implied when it is to be


gathered
from
the
surrounding
circumstances or the conduct of the
parties.
For example : At an auction sale, S is
the
highest bidder. The auctioneer
accepts the offer by striking the hammer
on table. This is an implied acceptance.

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