Offer Sec.2(a)
An Offer Can be Defined as follows:
An expression of willingness to contract on certain terms, made with the intention that it shall become binding as soon as it is accepted by the person to whom it is addressed.
Essentials of offer
- It must be an expression of the willingness to do or abstain from doing something.
- Such expression must be to another person.
- Such expression must be made with the intention to obtain the assent of the other person to such an act or abstinence.
- The communication of a proposal is complete when it comes to the knowledge of the person to whom it is made.
- E.g. - A proposes, by letter, to sell a house to B at a certain price. The communication of the proposal is complete when B receives the letter.
Acceptance: Sec 2(b)
Acceptance is the second „half‟ of a contract. If Bill offers Ben a bag of sweets for 20p, and Ben says „I accept‟, clearly a contract has been made. The law explains that there must be evidence from both sides of genuine agreement between parties – the old idea of consensus ad idem, or meeting of minds.
Acceptance can be defined as:
Agreement to all terms of an offer by words or conduct.
Essentials of acceptance
- Acceptance must be given only by the person to whom the offer is made.
- Must be absolute & unqualified.
- Must be in prescribed mode or reasonable manner.
- Must be communicated.
- Within reasonable time.
- Acceptance must succeed an offer.
- Rejected offers can be accepted only if renewed.
Communication of an acceptance
The communication of an acceptance is complete, - as against the proposer, when it is put in a course of transmission to him, so as to be out of the power of the acceptor; as against the acceptor, when it comes to the knowledge, of the proposer.
E.g. : B accepts A's proposal by a letter sent by post. The communication of the acceptance is complete, as against A when the letter is posted as against B, when the letter is received by A.