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Mercantile Laws-I

Notes Offer by abstinence: An offer can also be made by a party by omission to do something. This
includes such conduct or forbearance on one’s part that the other person takes it as his willingness
or assent.

Specific and general offers: An offer can be made either to (i) A definite person or a group of

persons, or to (ii) the public at large.
2.11 Self Assessment

Fill in the blanks:
1. An offer, ........................ from the conduct of the parties or from the circumstances of the
case, is known as implied offer.
2. A ........................ by filling up a share application form, usually attached to the prospectus,

is making the offer.
3. ........................ is implied when it is said to be gathered from the surrounding circumstances
or the conduct of the parties.
4. The acceptor may agree to all the terms of the offer and yet ........................ to be bound until
formal agreement is drawn up.
5. The performance of a ........................ depends upon happening or non-happening of some
future event.

6. ........................ are so-called because the obligations associated with such transactions could
neither be referred as tortuous nor contractual, but are still recognized as enforceable like
contracts, in courts.
7. The principle underlying a quasi contract is that no one shall be allowed unjustly to enrich
himself at the expense of another, and the ........................ based on a quasi-contract is
generally for money.
8. A person who is interested in the ........................ which another is bound by law to pay, and
who, therefore, pays it, is entitled to be reimbursed by the other.

9. Obligation of a person enjoying benefits of ........................ act.

10. The phrase ........................ means ‘as much as merited’ or ‘as much as earned’.

2.12 Review Questions

1. Define offer and distinguish between offer and invitation to offer.
2. (i) How is an offer made? (ii) Explain an implied offer, a specifi c offer, a general offer, a
counter-offer?
3. If the special conditions forming part of an offer are contained in a document which is
delivered after the contract is complete, is the other party (say a customer) bound by
them?

4. What are the reasons due to which the offer lapses or is revoked? If no time is fixed by the
offeror within which the offer is to be accepted does the offer remain open for an indefi nite
period of time?
5. (i) When is an offer said to be accepted? (ii) In which way acceptance of offer may be
made?

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