Archive | Business Law

When is Communication of Offer Complete The communication of offer is complete when it comes to the knowledge of the person to whom it is made. In case an offer is made by post, its communication will complete when the letter containing the offer reaches the offeree. Example X ofAgra sends a letter by post [...]

ACCEPTANCE Acceptance means giving consent to the offer. It is an expression by the offeree of his willingness to be bound by the terms of the offer. According to Section 2(b) of the Indian Contract Act, 1872, “A proposal is said to be accepted when the person to whom the proposal is made signifies his [...]

RULES FOR A VALID OFFER An offer to be valid must fulfil the conditions discussed below. 1.         Intention to Create Legal Relationship An offer must intend to create legal relations, An offer must be such that when accepted, it will create legal relationship among the parties  2. Certain and Unambiguous Terms The terms of the offer [...]

   OFFER Meaning An offer is the starting point in the making of an agreement. An offer is also called `proposal’. According to Section 2(a) of The Indian Contract Act, 1872, “A person is said to have made the proposal when he signifies to another his willingness to do or to abstain from doing anything with [...]

An offer must be accepted before it lapses (i.e. comes to an end). An offer may come to end in any of the following ways: 1.         By Revocation : An offer lapses if the offerer revokes the offer before its acceptance by the offeree. According to Section 5 of the Indian Contract Act, a proposal [...]

DIFFERENT TYPE OF CONTRACTS The various bases on which the contracts can be classified are discussed below: Contracts on the Basis of Creation On the basis of creation, the contracts may be classified as under: (a)       Express Contract Express contract is one which is made by words spoken or written. Example : X says [...]

ESSENTIALS OF A VALID CONTRACT According to Section 10, “All agreements are contracts if they are made by the free consent of the parties competent to contract, for a lawful consideration and with a lawful object and are not hereby expressly declared to be void.” The analysis of the provisions of Section 10 shows that [...]