Premium Essay

Contract Law, Offer and Acceptance

In: English and Literature

Submitted By nourwan
Words 20962
Pages 84
Contract Law Notes
Contracts ‘A’

Offer

- Bilateral contracts
- Unilateral contracts
- Offers to the public at large

What is an offer?
- Mere puff
- Supply of information
- Invitation to treat

Categorizing transactions
- Advertisements
a) Advertisements in a catalogue or a curricular
b) Advertisements in newspapers or magazines
c) Advertisements appearing on the internet
d) Display of goods
- Auctions
a) Advertisement of auction
b) Auctions with reserves
c) Auctions without a reserve
- Tendering
- Standing offers
➢ Options

Communication of an offer

Termination of an offer
- An offer may be terminated by
a) Revocation by the offeror
b) Rejected by the offeree
c) Lapse of time
d) Failure of a condition subject to which the offer was made
e) Death

Acceptance

Requirements of acceptance

Acceptance must correspond to offer
- Offeree must have knowledge of and act in reliance to an offer

Page 9

Page 9

Page 10

Page 12

Page 13

Page 14

Page14

Page14

- A counter offer is not acceptance
- Acceptance must be unqualified
- Mere enquiry does not constitute acceptance

Notification to the offerer of the fact of acceptance
- Method of acceptance
a) Method of acceptance stipulated by offer
b) Acceptance by silence
c) Acceptance by conduct
- Instantaneous communication: Acceptance must be communicated
a) General rule
b) Meaning of instantaneous communication
- Postal acceptance rule
a) Statement of the rule
b) Policy behind the rule
c) To what communication does the rule extend
d) Where is the rule displaced
e) Revocation of acceptance prior to receipt

Acceptance in unilateral contracts
- Acceptance commonly by conduct
- Withdrawal of an offer after acceptance has commenced

Who may accept an offer?

Contract…...

Similar Documents

Premium Essay

Contract Law

...Law Of Contract Definition and Nature A Contract is an agreement between two parties that creates an obligation to perform (or not perform) a particular duty. According to Section 2(h) of the Indian Contact Act of 1872, A Contract is - “An Agreement enforceable by law” In other words, A contract is a binding legal agreement. Thus we can say: Agreement + Enforceability by law = Contract Formation of Contract PROPOSAL/OFFER [SECTION 2(a)]: A person is said to make a proposal when “he signifies to another his willingness to do or to abstain from doing anything with a view to obtaining assent (Agree) of that other to such act or abstinence” Example: 1. Rima offers to sell her Law books to Rony . Here, Rima is offering or giving a proposal to Rony. If Rony accepts a Contact is formed. Proposal & Promise Section 2(b) of the Contract Act 1872 states that, “A proposal (Offer) when accepted becomes a promise” The person making the proposal is called the “promisor” (Offeror), and the person accepting the proposal is called the “promisee” (Offeree). [section 2(c)]. When, at the desire of the promisor, the promisee or any other person has done or abstained from doing, or does or abstains from doing, or promises to do or to abstain from doing something, such act or abstinence or promise is called a consideration for the promise. [section 2(d)]. Consideration is an important element of a......

Words: 4434 - Pages: 18

Premium Essay

Law of Contract

...13 MBA 16 – Business Law & Practice Module 01 - Law of Contract Coverage of: • Law of Contract: Definition, Essentials • Types of Contracts • Offer – Definition & Essentials • Acceptance - Definition & Essentials • Consideration – Definition & Essentials, Exceptions • Capacity of Parties • Free Consent • Quasi Contract • Legality of Object • Performance of Contract – Termination of Contract – Remedies for Breach of Contract Case Studies 1 The Indian Contract Act, 1872 The Indian Contract Act consists of the following two parts:  General principals of the Law of Contracts – covered under section 1 to 75; the principles apply to all kinds of contracts irrespective of their nature  Special kinds of contracts – covered under section 124 to 138 ; These special contracts are Indemnity & Guarantee (u/s124 to 147), Bailment & Pledge (u/s148 to 181) and Agency (u/s 182 to 238) in Chapter X – refer next Module 2) Section 76 to 123 – repealed by Sale of Goods Act, 1930 (refer Module 4) • • Section 239 to 266 – Chapter XI has been repealed by the Indian Partnership Act , 1932 ( not being covered separately; but major issues under different modules) The act does not affect any usage or custom of trade (u/s 1) – these prevail if reasonable & not illegal; an unique feature of this Act – most important branch of business law Some of the contracts not dealt with by the this Act are those related to Partnership, Sale of Goods (refer module 4),......

Words: 15475 - Pages: 62

Premium Essay

Contract Law

...Contract Law  LAW OF CONTRACT Name: Institution:   A contract can be simply defined as an agreement made by parties that is legally binding by its nature. It can also be defined as legally binding set of promises or promises (Lawrence & Elizabeth, 2007). A breach of any aspects of the agreement or a promise that constitutes a contract will lead to a subsequent remedy from the party that has been accused of the breach. The law of contract as shall be later discussed has provided for such remedies. The obligation to perform the duties that the law recognizes the contractual document or agreement specified. This defining characteristic of the contract is broadly known as enforceability. A contract is thus an agreement that is deemed enforceable. However, it is worthy to point out that while it is generally acceptable that all contracts are agreements, the reverse is not true. Not all agreements constitute a contract. The law of contract may classify contracts as follows: specialty or written contracts, contracts that are evidenced in writing, contracts that are under a seal and simple contracts. Specialty contracts are contracts, which the law specifies that they must be written. A formal structured document embodies a specialty or written contract. Examples of contracts that the law classifies as specialty contracts include insurance contracts like marine insurance, lease and hire purchase agreements and the contracts that will put in place proceedings that......

Words: 1685 - Pages: 7

Premium Essay

Rules of Offer and Acceptance in a Contract

...Rules of offer and acceptance in a contract Offer and acceptance are elements required for the formation of a legally binding contract: the expression of an offer to contract on certain terms by one person (the "offeror") to another person (the "offeree"), and an indication by the offeree of its acceptance of those terms. The other elements traditionally required for a legally binding contract are (i) consideration and (ii) an intention to create legal relations. Offer and acceptance analysis is a traditional approach in contract law. The offer and acceptance formula, developed in the 19th century, identifies a moment of formation when the parties are of one mind. ------------------------------------------------- Offer[edit] Treitel defines an offer as "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", the "offeree".[1] An offer is a statement of the terms on which the offeror is willing to be bound. It is the present contractual intent to be bound by a contract with definite and certain terms communicated to the offeree. The expression of an offer may take different forms, such as a letter, newspaper advertisement, fax, email and even conduct, as long as it communicates the basis on which the offeror is prepared to contract. Whether the two parties have reached agreement on the terms or whether a valid offer has been made is an issue......

Words: 2902 - Pages: 12

Premium Essay

Contract Law

...another company based in New York State called Yarner, Inc.. Terra, Inc. then sent a purchase order for the materials to Yarner, Inc. and the order had no terms as to how disputes regarding the contract would be handled. Yarner sent back an acknowledgment of the order and provided a clause stating that all disputes must be submitted to arbitration. Terra kept the acknowledgment and didn’t object to the arbitration clause. ISSUE: The first issue is wether, under New York law, the acknowldgement that contains an additional term is binding. The second issue is wether, under New York law, the contract was altered materially making the contract unenforceable. RULES: U.C.C. § 2-207 . Additional Terms in Acceptance or Confirmation. (1) A definite and seasonable expression of acceptance or a written confirmation which is sent within a reasonable time operates as an acceptance even though it states terms additional to or different from those offered or agreed upon, unless acceptance is expressly made conditional on assent to the additional or different terms. (2) The additional terms are to be construed as proposals for addition to the contract. Between merchants such terms become part of the contract unless: (a) the offer expressly limits acceptance to the terms of the offer; (b) they materially alter it; or (c) notification of objection to them has already been given or is given within a reasonable time after notice of them is received. In the case of Aceros......

Words: 1253 - Pages: 6

Premium Essay

Contract Law

...Contracts Agreements between two entities, creating an enforceable obligation to do, or to refrain from doing, a particular thing. Nature and Contractual Obligation The purpose of a contract is to establish the agreement that the parties have made and to fix their rights and duties in accordance with that agreement. The courts must enforce a valid contract as it is made, unless there are grounds that bar its enforcement. Statutes prescribe and restrict the terms of a contract where the general public is affected. The terms of an insurance contract that protect a common carrier are controlled by statute in order to safeguard the public by guaranteeing that there will be financial resources available in the event of an accident. The courts may not create a contract for the parties. When the parties have no express or implied agreement on the essential terms of a contract, there is no contract. Courts are only empowered to enforce contracts, not to write them, for the parties. A contract, in order to be enforceable, must be a valid. The function of the court is to enforce agreements only if they exist and not to create them through the imposition of such terms as the court considers reasonable. It is the policy of the law to encourage the formation of contracts between competent parties for lawful objectives. As a general rule, contracts by competent persons, equitably made, are valid and enforceable. Parties to a contract are bound by the terms to which they have agreed,......

Words: 12598 - Pages: 51

Free Essay

Offer and Acceptance

...(offeree) for acceptance, and which becomes legally enforceable if accepted by the offeree. A explicit proposal to contract which, if accepted, completes the contract and binds both the person that made the offer and the person accepting the offer to the terms of the contract. http://www.duhaime.org/LegalDictionary/O/Offer.aspx Terms and conditions under which an offer is made, such as quantity, price, discounts, delivery date, shipping costs http://www.businessdictionary.com/definition/offer.html Acceptance of an offer is the final and unequivocal expression of assent to another's offer to contract. http://www.duhaime.org/LegalDictionary/A/Acceptance.aspx "Acceptance means the signification by the offeree of his willingness to enter into a contract with the offeror on the terms offered to him by the latter. Without an acceptance there can be no contract ...." "In the ordinary case ... there is a manifestation of willingness to be bound by one party followed by a manifestation of an assent by the other by words or conduct, generally and usefully called offer and acceptance." "Each of (these) definitions contemplates a willingness, either in words or by conduct, to be bound by the terms of the offer. But each definition also entails a manifestation, or a signification, or an indication of such willingness." Book 9(1) of Halsbury's Laws of England, 4th Edition (2007) “termination of offer”, and can happen in a number of ways, for a variety of reasons. Termination of offer......

Words: 1181 - Pages: 5

Premium Essay

Contract Law

...|Coursework Header Sheet |[pic] | |186606-24  | | |[pic] [pic] [pic] [pic] [pic] [pic] [pic] [pic] [pic] [pic] | | |Course |LAW1091: Business & Co Law |Course School/Level |BU/UG | |Coursework |Business and company Law |Assessment Weight |100.00% | |Tutor |MF Ottley |Submission Deadline |01/12/2011 | [pic] |Coursework is receipted on the understanding that it is the student's own work and that it has not, in whole or part, been presented | |elsewhere for assessment. Where material has been used from other sources it has been properly acknowledged in accordance with the | |University's Regulations regarding Cheating and Plagiarism. | [pic] 000613042    [pic] [pic] [pic] [pic] [pic] [pic] [pic] [pic] [pic] [pic] [pic]    Han Tun  |Tutor's comments   ...

Words: 2059 - Pages: 9

Premium Essay

Law of Contract

...Law of Contract The nature of contract law: The law relating to contracts is a subject matter of private law. The governing law of contracts is the Contract Act 1872, which is predominantly a private law. The public law, however, comes into play when the parties are at breach of contracts. For example, the courts can award damages/compensation for the breach of contract, which is an act of public law. Contract law is part of law of obligation, which has other sources such as law of torts which govern compensatory remedies for legal injuries arising out of breach of legal, not contractual, duties. An example of tort law is compensation for injury arising from the use of a faulty product, not based on a contract. Contract permeates every day business life. Business managers often need to enter into, and sometimes even draft, contracts with other enterprises or people. Sometimes, contracts give rise to disputes which need to be settled through courts or arbitration. A well-drafted contract however can minimize the rise of disputes, which in many ways depends upon the legal adviser’s or the manager’s knowledge about contract law. The contract law deals also with the laws of agency, partnership, and the sale of goods. Of these issues of contract law, contract law proper and the law of agency re governed by the Contract Act 1872, a British-era enactment. Definition of a contract: According to s. 2 (h) of the CA 1872 an agreement enforceable by law is a contract. Te...

Words: 2809 - Pages: 12

Premium Essay

Law of Contract

...Section 2(b) Contracts Act, 1950, ‘contract’ can be defined as ‘an agreement enforceable by law. It can be understand that a contract is an agreement which is legally binding between parties. There are 5 basic elements constituting a contract such as offer, acceptance of the offer, intention to create legal relations, consideration, certainty and capacity. Abu who operates small business manufacturing engine oil filters. He placed an advertisement in a car trade magazine stating that he would supply a filters at RM35.00 per unit, but he will consider reduction the price for large orders. Then a week later he received a letter from Brothers to asking about the quotation to supply 1000 units of oil filter. Under the law of contract, when Abu do the advertisement in the news paper is consider as an invitation to treat. The case of Grager & Sons v William Lane Gough (Suveyor Taxes) [1896] it was held that the price list was an attempt to induce offers from recipients, not an offers itself. A week later Abu received the quotation from Brothers Sdn Bhd asking about the quotations, and he replied, offering to supply the filers at a cost of RM28.00 each is the preminary negotiations where not will be taken as a proper offer that can be bring into the contract. An offer must be distinguished between the party. The case of Harvey v Facey [1893], the court held that there was no contract been made as the offer was never accepted. The telegram was not an offer merely to......

Words: 1088 - Pages: 5

Premium Essay

Law(Acceptance)

...3.0 Acceptance 3.1 Definition of acceptance Acceptance is an express actor implication by conduct that manifests assent to the terms of an offer in a manner invited or required by the offer so that a binding contract is formed. The exercise of power conferred by an offer by performance of some act. The act of a person to whom something is offered or tendered by another, whereby the offered demonstrates through an act invited by the offer an intention of retaining the subject of the offer. According to law of contracts, acceptance is one person’s compliance with the terms of an offer made by another. Acceptance occurs in the law of insurance when an insurer agrees to receive a person’s application for insurance and to issue a policy protecting the person against certain risks, such as theft. 3.2 Requirement of acceptance 3.2.1 Absolute and unconditional Acceptance must be absolute and unconditional. An acceptance must be unconditional and unqualified. Accepting an offer with conditions, varitions and reservations amounts to counter offer and rejection of gthe origional offer. A variations or alteration, howeer, small of the offer, will make the acceptance invalid. According to case Hyde v Wrench [1840] EWHC Ch J90 is a leading English contract law case on the issue of counter-offers and their relation to initial offers. In it Lord Langdale that any counter-offer cancels the original offer. 3.2.2 Normal and reasonable Acceptance must be normal and reasonable.......

Words: 397 - Pages: 2

Premium Essay

Offer & Acceptance

...for any price is a valid offer. One of the requirements of a valid offer is that the offer must be clear in meaning. Section 30 of the Contracts Act 1950 also provides that agreements are void if there is uncertainty in the meaning or when the meaning is capable of being made certain. In Ahmed Meah & Anor v Nacodah Merican, the defendant promised to build a ‘suitable house’ upon the marriage between plaintiff and the defendant’s daughter as a gift to them. The plaintiff sought for specific performance of the agreement but it was held that the agreement cannot be enforced as the promise is void for uncertainty. This is because the ‘suitability of the house’ was uncertain to the nature as well as the value of the house to be built. In the present case, Shaggy’s statement that he is willing to pay any price for the display case is too vague to be constituted as an offer. What is the range of value represented by the term ‘any price’? Would RM 1.00 suffice? What if the price is beyond his financial capability? An offer has to be unequivocal and clear. It could then be deduced that his statement was to induce Freddie to offer him the display case as well as to show Shaggy’s mere expression of willingness to enter into negotiations. Subsequently, Freddie was the one who actually offered to sell to Shaggy the display case at the price of RM 160,000.00. The second issue in this case is whether Shaggy’s silence can amount to an acceptance of Freddie’s offer of the display case,......

Words: 1160 - Pages: 5

Premium Essay

Contracts and Acceptance Offer

...Contracts: Offer and Acceptance Iris M. Rodriguez LAW 531 November 30, 2011 Jonathan Beyer Contracts: Offer and Acceptance Quick Tape Video is a television Production Company experiencing difficulties with the operation of outdated editing equipment. The editing equipment has been outdated for over 10 years. The post-production supervisor, Janet Mason, is advocating replacing the equipment with more up-to-date digital technology. Hal, the production company’s owner, made a promise to Janet that he will look into the possibility of acquiring the much needed upgrade to the editing equipment. In response to Janet’s request, Hal scheduled a meeting with a representative from Non-Linear Pro; the company responsible for the sales and distribution of editing equipment. Contract Formation According to Privette (1985), a contract is defined as a written or a verbal agreement. There are certain elements that need to be present for the formation of a contract. The elements of a contract are agreement, consideration, contractual capacity, and lawful object (Cheeseman, 2010). The essential elements of a contract are present in the scenario from Contracts: Offer and Acceptance Video. Therefore, there is a contract formation between Hal and Jack. The elements found in the video scenario, which formed the contract, are......

Words: 2080 - Pages: 9

Premium Essay

Contract Law

...According to law for a contract to be sufficient but need not be adequate. There are four major elements which is very important in contract laws. First element is offer, whereby there must be an offer offered by the offeror or by offeree to each other which is accepted by the parties and which consequently creates a binding contract; offer is also an expression of willingness to contract done with an intention of creating a binding contract in as soon as the offer is accepted. The nature of offer differs if it’s an invitation for treat or a unilateral contract. However, in Rahman’s case it is an invitation to treat rather than normal offer and acceptance. The chair was exhibited in antique exhibition and it is very much expected to get many offers for that chair as it’s an invitation for offers. The second principal acceptance, whereby acceptance occurs when an offeree agrees to be mutually bound to the contracts conditions by giving considerations or something in value to close the deal. When a valid acceptance takes place a binding contract is created. Referring to this case, Rahman did offer a deposit of Rm500.00 to Kenny Yu but the offer was refused by Kenny, whereby at this point of time there was no binding contract between Rahman and Kenny Yu. The third principle is consideration and it is one of the most important principles among the four major elements. Consideration must be sufficient but no adequate; consideration must involve some kind of value in order to......

Words: 800 - Pages: 4

Premium Essay

Offer and Acceptance

...OFFER AND ACCEPTANCE OFFER When one party expresses interest to buy or sell an asset from another party. The offering price is often the highest the buyer will pay to purchase an asset, and the lowest that the seller will accept. The person that makes offer is called "offeror or promiser".The person to whom offer is made is called "offeree". Offer can also be called a "Proposal". EXAMPLE: 1) Ali offers to sell his watch to Ashraf , here Ali is making an offer to Ashraf. 2) When purchasing a house, prospective buyers will make an offer to the seller, and will often list the highest price he or she is willing to pay. However, if another prospective buyer enters the scene and a bidding war ensues, each buyer will continue to bid until his or her maximum price level is attained OFFER and its types : Express Offer: An offer may be made by express words, spoken or written. Suchan offer is known as an express offer. Implied Offer: An offer may also be implied from the conduct of the parties or thecircumstances of the case. This is known as implied offer.For example, An offer by the Transport Co. to carry passengers for a certain fare. Specific Offer: When an offer is made to a definite person, it is called specific offer. General Offer: When an offer is made to the world at large, it is called as generaloffer. A mere making of an offer does......

Words: 3140 - Pages: 13

Hanatsuki Hime | Скачать | Künstler- & Zeichenbedarf