Types of offer in indian contract act. Laws of Business: Offer in Contract 2019-02-26

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Difference Between Offer and Invitation to Offer (with Examples and Comparison Chart)

types of offer in indian contract act

Example s : a A passenger had purchased a ticket for a journey. Acceptance, in order to be valid, must be made under circumstances which would show that the acceptor is able and willing to fulfil the promise. Thus, a tender to supply goods as and when required over a certain period amounts to a standing offer. If it is done at the instance of a third party or without the desire of the promisor, it will not be good consideration. Example- A man marries a woman with her consent but later on the woman dies due to illness.


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10 Essential Elements of a Valid Contract in Business Law

types of offer in indian contract act

Lal V, Han Charan Lal. One of the conditions was that the railway company would not be liable for personal injuries to the passenger. This means that as long as there is consideration for the promisee, it is immaterial, who has furnished it. In both cases offer is made and oral acceptance is expected. The most obvious example of such an offer is where a reward is publicity offered to any about that object, who will recover a lost object or wll give some information, there the party claiming the reward has not to prove anything more than that he has performed the conditions on which the reward was offered. Conversely, the major elements of an agreement are agreement and its enforceability by law.

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Laws of Business: Offer in Contract

types of offer in indian contract act

Therefore, there must be an agreement and it should be enforceable by law. An offer should be such that when the other party will accept it then it will make the legal relationship among the parties. As per Section 2 c , when the offeree accepts the proposal by the offeror than he becomes the Acceptor of that offer. In this way, the Indian Contract Act came into force, which was enacted by the British Government because at that time they were ruling on India. An acceptance of the offer, in ignorance of the offer, is no acceptance and, therefore, no valid contract can arise.


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Offer: Meaning, Types & Rules

types of offer in indian contract act

Similarly, where a condition to an offer is against public policy, it will not be enforced merely because it has been accepted by the acceptor. Now B gives telegram to A send one pen. Example: B sold his business to P without disclosing the fact to his customers. Thus, a specific offer is made to a specific person, and only Miley can accept the offer. It is not only the business community which is concerned with the Contract Act, but it affects everybody.

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Difference Between Offer and Invitation to Offer (with Examples and Comparison Chart)

types of offer in indian contract act

Acceptance must be absolute and unqualified Acceptance must be expressed in some usual and reasonable manner ,unless the proposal prescribes the manner in which it is to accepted. Acceptance must be given within the time stpulated or within a reasonable time if time is not mentioned. It is a positive act on the part of X. An act constituting consideration must have been done at the desire or request of the promiser. Court decides that acceptance is not made within reasonable period and hence the allotment is not valid.

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Offer And Acceptance

types of offer in indian contract act

This is an implied offer by the bus company to take any person on the route who is prepared to pay the prescribed fare. This law is applicable to the whole of India, except the state of Jammu and Kashmir. Communicatio n of offer: Se. A part-time contract generally hovers around the 30-hour mark per week. It is unenforceable as against the Petitioner-Company. If they want to enter into a contract, at least one of them must send his acceptance to the offer made by the other.

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Law of Contract: Types of Contract & Cases under The Indian Contract Act, 1872

types of offer in indian contract act

That means unenforceable contract suffers from some technical defect which may be insufficient stamp etc. The person making the declaration will not be liable to the person who has suffered some loss because of relaince on the delcared intention. Legal Obligations: Offer must be capable of creating legal relation. For example, if printing of the ticket is not clearly visible due to the smallness of the type it could not be taken that the carrying company had made sufficient arrangement for the communication of the conditions. All agreements are not enforceable by law and therefore, all agreements are not contracts. Past consideration is not consideration according to English law. In this case Gowridutt is fond of children, but he has no children.

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Difference Between Agreement and Contract (with Examples, Similarities and Comparison Chart)

types of offer in indian contract act

Special and General Offers- When an offer is made to a specific or special person, it is known as a specific offer but when the same is not made to any particular person but to the public at large it is known as general offer. Introduction The Indian Contract Act occupies the most important place in the Commercial Law. On the back of the ticket, there were certain terms and conditions. Here the company makes a general offer saying that those capsules can cure influenza very quickly and prior consumption of their capsules will avoid attack by influenza. A statement of the lowest price at which a landowner is prepared to sell has been held not to be an offer thus, when an owner of property says he will not accept less than Rs. When he failed to pay the amount, the wife brought an action to enforce the agreement. Sometimes, a person declares that he has the intention to do something; this does not amount to an offer.

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Offer

types of offer in indian contract act

If no such intention is present, the acceptances is not valid. Example: there is a Contract between P and Q where Q is a minor who has no capacity to contract. In this case A makes an offer to sell his car to B at a price of Rs. It was enacted by the Imperial Legislative Council on 25th April, 1872 and the law came into force on 1st September, 1872. The court held the services were rendered on an implied promise to pay for them.

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