Page 20 - DMGT102_MERCANTILE_LAWS_I

Mercantile Laws-I Neetu Singh, Lovely Professional University

Notes Unit 2: Offer and Acceptance

CONTENTS

Objectives
Introduction
2.1 Proposal (or Offer) and Acceptance [Ss. 3-9]
2.2 Modes of making an Offer
2.3 Differences between Offer and Invitation to Offer

2.4 Essentials of a Valid Offer
2.5 Revocation of Offer
2.6 Acceptance of an Offer
2.7 Completion of Communication of Offer and Acceptance [S. 4]

2.8 Contingent Contract Defined (S. 31)

2.8.1 Quasi Contracts (Ss.68-72) (Certain Relations Resembling those created by
Contracts)
2.8.2 Cases which are treated as Quasi Contracts

2.8.3 Quantum Meruit
2.9 Summary
2.10 Keywords
2.11 Self Assessment
2.12 Review Questions

2.13 Further Readings

Objectives

After studying this unit, you will be able to:
z Discuss offer and acceptance
z Describe modes of making an offer
z Discuss acceptance of an offer

Introduction

In last unit you have studied about law of contact. As we come to know that a contract is an
agreement, enforceable by law, made between at least two parties by which rights are acquired
by one and obligations are created on the part of another. If the party, which had agreed to do
something, fails to do that, then the other party has a remedy. The Act imparts defi niteness in
business transactions as it ensures that what a person has been led to expect shall come to pass
and what has been promised to him shall be performed. Thus the purpose of the law of contract
is to ensure the realisation of reasonable expectations of the parties who enter into a contract. This

unit provides you significant understanding of offer and acceptance. This unit also discusses the
concept of consideration.

14 LOVELY PROFESSIONAL UNIVERSITY