Escolar Documentos
Profissional Documentos
Cultura Documentos
OFFER OR PROPOSAL :
Section 2(a) of Indian Contract Act 1872 defines the term offer or proposal. It provides that when one person (offeror) signifies to another person (offeree ) 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 or offer.
ESSENTIALS OF A VALID OFFER 1. Intention to obtain acceptance 2. Intention to create legal relationship 3. Certainty 4. Communication 5. Should not contain a term the non compliance of which would amount to acceptance 6. A mere statement of price is not an offer to sell
7. An offer is different from invitation to an offer 8. An offer may be expressed or implied 9. An offer may be conditional or unconditional
Meaning of cross offer Two offers which are similar in all respects made by two parties to each other, in ignorance of each others offer are known as cross offer. Cross offers do not amount to acceptance of ones offer by the other. Hence, no contract is entered into on cross offers. Example: X of Agra sends a letter by post to Y of Delhi offering to sell his car for Rs.1 lakh. The letter is posted on 1st January and the same day, Y of Delhi sends a letter by post to X of Agra offering to buy Xs car for Rs. 1 lakh. These two letter cross each other. Ys letter is merely an offer and not the acceptance of Xs letter. Here, both the parties are making offer and no party has accepted the offer. Therefore, no contract has been entered into, if they want to entered into contract, at least one of them must send his acceptance to the offer made by other.
1.
2.
3.
ACCEPTANCE:
Section 2(b) of Indian Contract Act,1872 defines the term acceptance. It provides that when the person, to whom the proposal or offer is made, signifies his assent thereto, the proposal or offer is said to accepted.
Consideration:
The term consideration is defined under Section 2(d) of the Indian Contract Act,1872. It provides that when at desire of the promisor, the promisee (offeree) or any other person, 1.Has done or abstained from doing something or; 2.Does or abstains from doing something or; 3.Promises to do or to abstain from doing something,
Types of Consideration:
The Consideration may be of three kinds. It may be past consideration, executed or present consideration and executory or future consideration. On the basis of this, contracts are also called past, executed and executory contracts.
1.Agreement out of natural love and affection between closely related parties. 2.Agreement made voluntarily. 3.Agreement to pay time barred debt. 4.Agreement of agency. 5.Gifts.
1. 2. 3. 4. 5.
forbidden by law or; it is of such nature, if permitted, it would defeat the provision of any law or; is fraudulent or; involves or implies injury to the person or property of another or; the court regards it as immoral or opposed to public policy.
CASE LAWS
CASE - 1 A Company advertised in several newspapers that a reward of Rs.1000 would be given to any person who contracted influenza after using the smoke balls of the company according to its printed directions. One Mrs. Carlill used the smoke balls according to the directions of the company but contracted influenza. DECISION: Held, she could recover the amount as by using the smoke balls she had accepted the offer.
CASE - 2 An auctioneer advertised in a newspaper that a sale of office furniture would be held. A broker came from distant place to attend that auction, but all the furniture was withdrawn. The broker thereupon sued the auctioneer for his loss of time and expenses.
DECISION: Held, a declaration of intention to do a thing did not create a binding contract with those who acted upon it, so that the broker could not recover.
CASE - 3 S sent his servant, L, to trace his missing nephew. He then announced that anybody who traced his nephew would be entitled to certain reward. L traced the boy in ignorance of this announcement. Subsequently when he came to know of the reward, he claimed it.
CASE - 4 A made an offer to sell some goods to B conditional on receiving a reply by return of post. A gave the letter to his peon to post but the peon forgot to post it immediately and posted it after seven days. On receiving As letter, B wrote a reply, accepting the offer, and duly posted it by return of post. In the mean time not having heard from B, A sold the goods to C. Has B any legal remedy against A? DECISION: Yes, There is a contract between A and B (Section 4). But since A has already sold the goods, B can recover damages from A.
CASE - 5 B spent some money on improvement of the market at the desire of the Collector of the district. In consideration of this D who was using the market promised to pay some money to B. DECISION: The agreement was void being without consideration as it had not moved at the desire of D.
CASE - 6 An old lady, by a deed of gift, made over certain property to her daughter D, under the direction that she should pay her aunt, P (sister of the old lady), a certain sum of money annually. The same day D entered into an agreement with P to pay her the agreed amount. Later, D refused to pay the amount on the plea that no consideration had moved from P to D. DECISION: Held, P was entitled to maintain suit as consideration had moved from the old lady, sister of P to daughter, D.
CASE - 7 S bought tyres from the Dunlop Rubber Co. and sold them to D, a sub-dealer, who agreed with S not to sell these tyres below Dunlops list price and to pay the Dunlop Co. Rs.50 on every tyre D undersold. D sold two tyres at less than the list price and thereupon the Dunlop Co. sued him for the breach. DECISION: Held, the Dunlop Co. could not maintain the suit as it was a stranger to the contract.
CASE 8 H who was badly in need of money offered to sell his piano worth Rs.5000 to C for Rs.4000. C refused to buy. H gradually lowered his price until Rs. 1000 was reached which C accepted. Before the piano was delivered, H received an offer of a large sum from T, and he refused to carry out the contract with C, claiming that the consideration was inadequate. C sued H for breach of contract. DECISION: Held, H liable to pay damages to C for failure to carry out his part of the contract.