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OFFER AND
ACCEPTANCE
By Advance Saraswati Prakashan Pvt. Ltd
Tinkune, Kathmandu
01-4790359, 9851103159, 9851103169
COURSE CONTENT

 Meaning And Rules regarding Offer

Revocation/lapse of Offer
Meaning and Rules regarding Acceptance
Communication of Offer and Acceptance

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OFFER
 Meaning of Offer
 When one person signifies to another his willingness to do or
not to do something with a view to obtaining the consent of
that other it is said to be offer.
 According to the Indian Contract Act , 1872 , we can see the
following features of an offer.
o An offer is an expression of willingness to do or not to do
something.
o It is made to another party (particular person or general people
)
o There is an intention to obtain the assent of the offers.
According to Black’s Law Dictionary “Offer” means a promise
to do or refrain from doing some specified thing in the future , a
display of willingness to enter into a contract on specified terms
made in a way that would lead a reasonable person to
CONTD…
CHARACTERISTICS OF OFFER ARE AS FOLLOWS:
I. Offer must create legal relationships.
II. Offer must be Clear ,not Vague.
III. Offer must be communicated to the offeree.
IV. Offer may be Conditional
V. Offer cannot contain a Negative Condition.
RULES REGARDING A VALID OFFER
 A Valid offer must be in conformity with the following rules:
a. It may be Express and implied
b. Creating legal relations
c. Clarity and certainty
d. An invitation to offer is not an offer
I. Auction
II. Quotation , Catalogues and Display of Goods
III. Tender
e. An Offer May be “Specific” or “General”
f. Communication of Offer
 REVOCATION OR LAPSE OF OFFER
• Offer lapses and becomes invalid i.e., comes to an end in the following
circumstances :
1. By the Expiry of Stipulated Time
1.

2. Death
2. or Insanity of the Offeror (Sec. 510
(C) , (E) )
3. By Notice (Sec. 509)
3.

4. Non-fulfillment of a Conditional Offer (Civil

REVOCATIO
Code, 2074 510)
N OR LAPSE
5. By the failure of Prescribed Mode
5
OFFER
6. By
6. Rejection

7. Subsequent
7. Illegality or Destruction of
Subject Matter
THE ACCEPTANCE
Meaning of Acceptance
 “A proposal when accepted becomes a promise” and “when
the person to whom the proposal is made signifies his assent
thereto, the proposal is said to be accepted.”
 Thus, “acceptance” is the manifestation by the offeree of his
assent to the terms of the offer.
 According to Indian Contract Act, 1872,” When a person
signifies to whom the proposal is made, signifies his assent
thereto the proposal is said to be acceptance. A proposal,
when accepted, becomes a proposal.
 Acceptance means the consent of the offeree over the subject
matter in the same sense which is taken by the offeror. There
must be a meeting of the minds of the offeror and offeree.
CONTD..

 CHARACTERISTICS OF ACCEPTANCE ARE AS FOLLOWS:

 Acceptance to be valid, offeree must have known of the offer
first and consciously accept it.
 It is given with intention to enter into a contract.
 It concludes the contract between the parties.
 Acceptance may be expressed or implied.
 Acceptance must be given with the prescribed time frame.
RULES REGARDING VALID ACCEPTANCE
Rules regarding to acceptance are :
 Can be Accepted only by the Offeree
 Must be absolute and unconditional
 Mode of acceptance
 Communication of Acceptance
 Communication of Acceptance the Offeror
 Must be Communicated by the Acceptor
 Time of Acceptance
 Acceptance must Succeed the Offer
 Rejected Offers
 Knowledge of Offer
REVOCATION OR LAPSE OF ACCEPTANCE

 A contract cannot be performed if the acceptance is revoked or

lapsed. An acceptance can be revoked or lapsed in the
following circumstances :
a. Acceptance Revoked by Notification
b. Revocation by Death or Insanity of Offeree
c. Acceptance Lapses and Revoked by Double Notice
COMMUNICATION OF OFFER AND ACCEPTANCE

COMMUNICATION OF OFFER
 Communication of offer refers to process of informing the offer
made by the offeror.
 Offer can be communicated by words spoken or written or by
conduct.
COMMUNICATION OF ACCEPTANCE
 Acceptance is the assent by the offeree to the offeror regarding
the offer put forward by him
 Communication of acceptance is the knowledge of the
acceptance by the offeree to the offeror.
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Assignment
Brief Answer Questions
1. Define the term offer and acceptance.
2. State any three nature of offer.
3. What is revocation of offer?
4. Distinguish between “ General “ and “Specific” offer.
5. What do you mean by communication of offer and acceptance?
6. State any three methods of revocation of acceptance.
7. Mention various rules regarding valid acceptance.
8. What is general offer? Illustrate.
Assignment
■ Short Answer Questions
1. Define offer and distinguish between offer and invitation to
offer.
2. “ A counter-offer can constitute an acceptance of an offer”.
Comment.
3. Discuss the role of “offer” and “acceptance” in the formation
of valid contract.
4. “Offer and acceptance are two pillar of a contract by which
the expectations of the parties included in legal recognition.”
On the light of above statement state the rules of a valid
acceptance.
5. State whether a contract is valid even if there is no proper
communication of acceptance.
Assignment
■ Long Answer Questions
1. Discuss the rules relating to offer and acceptance and
mention the circumstances under which offer lapses.
2. Explain role of communication, acceptance and revocation of
proposals in the formation of valid contract.
3. “Offer is said to be an initial step for the formation of an
agreement.” Discuss how offer is made and when it comes to
end?
 Case Study/ Situational Analysis

Please go through the book of Advance Saraswati

Prakashan for relevant Case Study
Any Question?

Contact Us for More Information

Tinkune, Kathmandu
01-4750359, 9843262646
www.advancesaraswati.com
[email protected]
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