Contract and Offer

Introduction A contr motion is defined as an agreement enforceable by police. Hence for all contracts there should have an agreement. The agreement a salary increases by genius of the parties fashioning an claim and its espousal by the new(prenominal) troupe. Both set up and acceptance realize an agreement. In simple contract should first contain an crack cocaine made by one party to the former(a). What is an allege? As per Sec 2(a) of the contract act When one individual signifies to a nonher his willingness to do or abstain from doing anything, with a view to obtaining the assent of that others to such act or abstinence is think to make a device.The word spell of the English law is synonymous to the word proposal of Indian contract act. The person make the proposal is called the proposer or crack cocaineor and the person accepting the proposal is called the offeree. A proposal is an pronounceion of will or intention. A person making the proposal that he is wi lling to contract on the foothold stated in it. The proposal is made to obtain the assent of the other party to whom the proposal is made. When A expresses his willingness to bewray motor car for Rs. 10, 000 with a view to get Bs acceptance to his offer, A is tell to make a proposal. How is offer made?Offer is made either by words spoken or by words written. This is an express offer. If A either tells or writes to B that he is prep bed to sell his car for Rs. 20, 000 it is an express offer. An offer is made by conduct or behaviour. Then it is an implied offer. For example, A is standing in a queue for get ticket for a train. Characteristics of valid offer 1)The terms of an offer essential be clear and legitimate or at least subject of being made authentic. The terms of an offer must be definite, certain and clear. It should non be indefinite, loose or feeble. The vagueness of an offer will non create any contractual relationship.The main reason is that the court cannot s ay what the parties are to do or expected to do a vague offer does not convey what exactly it means. Example- A agrees to B a hundred tons of oil. There is nothing what so ever so to show what kind of oil whether coconut or gingili oil was mean to be sold. Hence the agreement is void for ambiguousty and vagueness under character 29 of the contract act. In Taylor Vs Portington A agreed to decorate the mode according to present style, the court held that present style is vague and uncertain term and therefore the promise could not be enforced.According to section 29 of the contract act, the agreement in which the term is not certain or capable of being made certain are void and the alike cannot be enforced in a court of law. 2)Offer must be communicated to the offeree An offer becomes effective only when it has been communicated to the offeree, otherwise it cannot be bangn whether the parties are of the same mind. Until an offer is made known to the offeree, he does not know wh at he has to accept. The offeree must have some knowledge about the offer. other than any act done by him will not create any contractual obligations.In Fitch Vs Snedakar a person gave information (which would prevail to the arrest of the murderers of two policemen) without knowing that an award was offered for it, and claimed the award subsequently. It was held that he was not entitled to the award as he was not aware of the same. 3)An offer must be made with an intention of creating jural obligations The most principal(prenominal) characteristic of a valid offer is that it must create lawful obligation among the parties, otherwise it is not an offer in the eye of law. An offer will not become a promise unless it is made with a view to create legal obligations.If the parties agree that breach of entire party will not give rise to legal rights there is no contract, pull down though the offer and acceptance have been reduced into writing. An offer must impose some legal duty on the party making it. An offer to perform companionable act or an invitation to social affairs are not valid offers in the eye of law, because in such cases there is no intention between the parties to create legal obligation. Example- A invited B to dinner at his class on a particular day. When B went to As house on the particular day for dinner, A was not available in the house and the dinner also was not filey.In such a case ,B could not enforce it or claim any compensation for expenses incurred by him and retire ca utilize to him by A, because As invitation to dinner did not give rise to a legally binding agreement but is only a social affair. 4)Invitation to an offer is not an offer Quotations, catalogue of goods, advertisements for tender and prospectus of a company are no actual offer. They are unblemished invitations to offer. In case of an invitation to offer there is no intention on the part of the person sending out the invitation to obtain the assent of the other pe rson to such invitation. Example-When a merchant sends his quotation, it is not an offer but is only an invitation on his part of his readiness to transact product line on those terms. Similarly mere arguing of the lowest price at which the vendor would sell, will not amount to an offer. In Harvey Vs Facey it was held that mere statement of price is not an offer. 5)Special terms attached to an offer must be communicate When any circumscribed terms are to be include in a contract it is the responsibility of the offeror to bring those special terms to the knowledge of the offeree. Otherwise the offeree will not be give by them.Offeree can be held liable for the non-fulfilment of the conditions only when they have been expressly communicated to him or reasonable notice of the existence of the conditions is brought to his knowledge. Suppose the words sample back are printed on the face of the ticket and the conditions are printed on the back. In such cases, even if the passenger ha s not actually read the conditions, he will be bound by them. 6)An offer whitethorn be to an individual or to the public at large When an offer is addressed to a definite person or body of persons it is called a specific offer.When it is addressed to the whole world, it is a general offer. In Carlil Vs Carbolic flock ball Company, the company has offered advertisement a reward of Rs one hundred to anybody espial influenza after using the smoke ball according to their direction. Mrs. Carlil used it as directed, but still she had an attack of influenza. It was held that she was entitled to the award of Rs 100 as it was a general offer and she accepted it. 7)Offer may be express or implied An express offer is one which may be made by words spoken or written. Example-A writes to B that he is prepared to sell his house for Rs 2 lakhs. This is an express offer. An implied offer is one which may be gathered from the conduct of the party of the flock of the case. If a person hires a tax i car for going from one place to another he thereby undertakes to pay the fare even thought he makes no express promise to do so. So it is an implied offer. 8)Offer must be made with a view to obtaining the assent of the other party An offer must be distinguished from mere construction of intention.Mere enquiry is not an offer. An offer must be made with a view to obtain the assent of the other party. 9)Offer may be qualified An offer can be made subject to a conditional. In that case it can be accepted only subject to that condition. A conditional offer lapses when the condition is no accepted. 10)Offer should not contain a term, the non compliance of which would amount to acceptance One cannot say while making the offer that if the offer is not accepted before a certain date will be presumed to have been accepted.ASSIGNMENT LEGAL ENVIRONMENT OF patronage SUBMITTED BY SUBMITTED TO LAHIYA. K. S MR. AMRITHAKAPPAN MBA first SEM SUBMITTED ON ROLL NO35 3-9-2012 BMIMASSIGNMENT LEG AL ENVIRONMENT OF BUSINESS SUBMITTED BY SUBMITTED TO SEBY BABY MR. AMRITHAKAPPAN MBA 1ST SEM SUBMITTED ON ROLL NO49 3-9-2012 BMIM ASSIGNMENTLEGAL ENVIRONMENT OF BUSINESS SUBMITTED BY SUBMITTED TO CIRIL. JOHNY MR. AMRITHAKAPPAN MBA 1ST SEM SUBMITTED ON ROLL NO17 3-9-2012 BIBLOGRAPHY * L. R. POTTY * WWW. LAWDICTIONERY. COM