8/7/2019 LAB WEEK 2

1/16

8/7/2019 LAB WEEK 2

2/16

y Glossary

y Offeror, Proposer or Promisor - Person making the

offer.

y Offeree or Proposee To whomoffer is made.

y

Aceeptor or Promisee When Offeree/Proposee acceptsthe offer.

8/7/2019 LAB WEEK 2

3/16

y Offer

y An offer is a proposal byone party to another to enterinto a legally binding agreement with him. Elements

of Mercantile Law by N.D . Kapoor.

y Key:y Definite Offer

y Unqualified Acceptance - Restricted Acceptance

y Assent - To Agree

8/7/2019 LAB WEEK 2

4/16

y Express Offer

y Is anyoffer which is spoken, written or verbal.

y Implied Offery An offer which has logical consequence from conduct of

the parties or its circumstance.

y

Specific Offery If an offer is made toparticular person.

y General Offer

y

Is an made tomass anyone.

8/7/2019 LAB WEEK 2

5/16

y Offermust be such as in law is capable of beingaccepted and giving rise tolegal relationship.

y Terms ofoffer must be definite, unambiguous and

certain.y An Offer may be distinguished from:

y A Declaration

y A Statement or Announcement

y An invitation tomake an offer or to do businessy Newspaper advertisements are not offers

y Offermust be communicated

8/7/2019 LAB WEEK 2

6/16

y Offermust be made with a view toobtaining theassent.

y Offer should not contain a term the non-compliance of

which may be assumed to amount to acceptance.y Ex: Publishing Company Media Corporation sends you

a mail stating you will be made a member of newCosmopolitan Magazine for an yearlymembership feesof $500 if you do not reply to this letter within 15 days wewill consider you have accepted to be our member.

y A Statement ofprice is not an offer

y Ex: Quoatation

8/7/2019 LAB WEEK 2

7/16

y A tender is definite offer or standing offer.

y Definite Offer Tenders One time transaction

y Standing Offer Tenders Continuing transactions

8/7/2019 LAB WEEK 2

8/16

y To an offer what a lighted match is to a train ofgunpowder. It produces something which cannot berecalled or undone.

y Offer when accepted = Promise

y Express Or Implied

8/7/2019 LAB WEEK 2

9/16

y Itmust be absolute and unqualified

y Itmust be communicated to the offeror MOU, Draft

y Itmust be according to the mode prescribed or usual

and reasonable modey Itmust be given within a reasonable time

y It cannot precede an offer

y Itmust show an intention on the part of the acceptorto fulfil terms of the promise

y Itmust be given by the partyor parties towhom theoffer is made

8/7/2019 LAB WEEK 2

10/16

y Itmust be given before the offer lapses or before theoffer is withdrawn

y It cannot be implied from silence Magazine

Members

8/7/2019 LAB WEEK 2

11/16

8/7/2019 LAB WEEK 2

12/16

y Itmay be an act, abstinence or forbearanceor a returnpromisey Example compromise of disputesy Example settlement with creditors

y Itmay be past present or future

y It need not be adequate

y Itmust be real and not illusory

y Itmust be something which the promisor is notalready bound to do

y Itmust not be illegal, immoralor opposed topublicpolicy

8/7/2019 LAB WEEK 2

13/16

y Minorsy Any agreement is voidy He/she can be a promisee or a beneficiaryy His agreement cannot be ratified by himon attaing the ageofmajority.y If he has received any benefit under an void agreement he is entitle to keep the

goods or services and not pay any compensation.

y He/She can always claimminority.y There is no specific performance of the agreement .y He/She cannot enter into a contract of a Partnership.y He/She cannot be declared bankrupty He is liable for necessaries supplied or necessary servicesy He/She can be an agenty Parents/Guardians are not liable for contracts with minory Aminor is liable in civil wrong

y Persons of unsound mind

y Persons disqualified by anylaw to which the subject

8/7/2019 LAB WEEK 2

14/16

8/7/2019 LAB WEEK 2

15/16

y Ifit is forbidden bylaw

y Ifit is of such a nature that ifpermitted, it would

defeat the provisions oflawy Ifit is fraudulent

y Ifit involves or implies injury to the person or propertyof another

y If the court regards it as immoral

8/7/2019 LAB WEEK 2

16/16

y Ex turpi cause non oritur actio No actions

y In pari delicto, potior est conditiodefendentis Oneparty has performed and another fails toperform No

reversalor obligation enforced by court.