It is only the second type of offers about which we are concerend in the Indian Contract Act. Both types of offers are Valid. Acceptance A contract comes into being from the acceptance of an offer. The offer is legally binding on the parties. In other words, they must be capable of entering into a contract.
Consideration need not be in cash or in kind. Further, as per section 205, if the agency is for a fixed period, the principal cannot terminate the agency before the time expired, except for sufficient cause. But the acceptor will be bound by his acceptance only when the letter of acceptance has reached the proposer. An offer should be such that when the other party will accept it then it will make the legal relationship among the parties. In simple words, when an offer is accepted it becomes promise.
Held that the offer to take shares had lapsed as the reasonable time had passed since the making of the offer and M was not bound to take shares. If they want to enter into a contract, at least one of them must send his acceptance to the offer made by the other. Article shared by Essential elements of a valid contract in business law are explained below: According to Sec. Offer must be communicated: The offer, to be valid must be communicated to the offeree. Void or voidable nd offer and offer to sale etc…I think why not search on the Website.
The notice of the conditions should be given before or at the time of the contract but not afterwards. Y, one of her relatives, understands her position and spends his own money for cremation. The shopkeeper cannot be compelled to sell the goods at the price mentioned. Very easy to use and edit document in clear English. If offer accepted without any proper communication and information is not valid.
When the former party accepts, the offer made by the other parties, it becomes a contract, which is binding on the parties. Example: An offer is made to take shares indicating that the acceptance is to come by a telegram. This means that there must be consensus ad idem i. Thus, a tender, in response to an invitation, is an offer. Unenforceable: A contract which has not properly fulfilled the required legal formalities is called unenforceable contract. Example: A offers to sell his car to B for a sum of Rs.
Consensus ad idem , this identity of minds is agreement. Upton Rural District Council v. However it is a consideration as per Indian law. For example: Sitting in a Train can be taken as example to implied contract between passenger and owner of the bus. Further, acceptance must be given beforre the offer lapses or before the withdrawn.
. Mistake may be bilateral mistake where both parties to an agreement are under mistake as to the matter of fact. After a week of the said proposal and payment of the advance money, A learns through a broker that B was selling his house in the market to another party. Further, reasonable notice has to be given by one party to the other; otherwise, damage resulting from want of such notice, will have to be paid Section 206. Bharat had done the mgmt for the party. Exampl e : A bus company runs a bus on a particular route. If offer is made particularly to one person, it is called specific offer.
The acceptance of the offer is complete as soon as a passenger gets into the bus. Since the release has been brought about by coercion, such release is not valid. If the terms of the offer made are unclear, then no agreement can be gone into because it is not clear regarding what precisely the parties expected to do. The offer stands completely only when the offeree is communicated about the same. Exampl e: a A tendered to supply goods upto a certain amount to B over a certain period.