BUSINESS LAW- OFFER, TYPES AND RULES REGARDING THE VALID OFFER
The offer means to present something so that it may be accepted or rejected. It is the proposal presented by one person to another. This types of proposal create a legal obligation if i is accepted by the acceptance parties.
A valid offer may have expressed or implied.
For e.g: A offer to sell his motorcycle to b for rs. 3000.B agrees to pay A Rs.3000 for the motorcycle.Here A is called thre offeror or promiser and B the offerree or promise.
TYPES OF OFFER
Specific & General Offer: A offer which is made to a particular person is called the specific offer and where it is made to the general public is called the general offer.
Cross & Counter Offer: When both parties make their offer to each other at the same time is called the cross offer. This offer cannot be a valid offer because acceptance and offer are required from the two parties for making a contract.
When an offeree intends to accept the offer after alternation in any term of the offer is called counter offer.
RULES REGARDING THE VALID OFFER:
- Creating a legal relationship.
- The offer should not be certain and should be made to a definite person.
- Offer may be conditional
- Offer and offeree must be communicated.
- Th offer can be expressed in different as written, spoken and implied.
- Offer is seeking acceptance of other parties.
- Offer may be specific to a person.
- An offer should not contain the term that non-communication or rejection would amount to an acceptance.
- Invitation to offer is not an offer.
- An advertisement is not the offer.
LAPSE & REVOCATION OF OFFER(When Contract is ending):
- An offer lapses after reasonable and given time.
- An offer lapses by not being accepted in the mode prescribed in some usual and reasonable manner.
- An offer lapses by rejection. If Offeree rejects the offer then offer is rejected.
- An offer lapses by the death or insanity of the offeror or offeree before acceptance.
- When an offer is illegal.