PROPOSAL,ACCEPTANCE AND
REVOCATION
• PROPOSAL:-Acc. to section 2(a) of the Indian
contract Act, “When one person signifies to
another his willingness to do or abstain from
doing anything ,with a view to obtaining the
assent of that other to such act or abstainance,
he is said to make a proposal.’’
• The person making the proposal is called the
promisor or offerer.The person to whom the
offer is made is called the promisee or offeree.
ELEMENTS OF PROPOSAL
•There must be two parties
•Willingness to do or not to do
something
•Object of the proposal is to obtain the
assent of the other party.
DIFFERENCES
1. Difference between Proposal and Intention to make Proposal
(The case of HARIS VS NICKERSON need to be mentioned here)
Advertisement of a auction by Nickerson And cancelled afterwards.
Case-Montreal gas co.v/s Vesen –if satisfied thenrenewal can be
considered sympathatically.
2.Difference between a proposal and an invitation to make a
proposal
) EXAMPLES for invitation to make a proposal.
1.
Tenders
2.
Price list
3.
Prospectus
4.
Sales advertisementAnswers for inquiry.
5.
Inviting applications for vacant posts.
6.
Answers for inquiry.-harvey v/s facey-inquiry for sale of land.
LEGAL RULES AS TO PROPOSAL
1.The offer must be made to create legal obligations:
Case-Mr. Balfour vs. Mrs Balfour)
2. The terms of proposal must be certain not vague:
Case-Gothing vs. Iyon-purchase of other horse if proves to be lucky.
3. Proposal can be general or specific:
Case-- Mrs Carlill vs Carbolic Smoke Ball Company
4. Proposal may be Express or Implied.
5.Proposal should be in the form of a request and not an order:
6.The offer must be communicated:
Case-Lalman Shukla vs. Gauri Dutt-Lalmun munim ,nephew of Gauri
Dutt lost.
7. The special terms of the proposal must be communicated:
8. Proposal must be for possible act
ACCEPTANCE
According to section 2 (h) of the Indian Contract Act, “ When the person to
whom the offer is made signifies his assent there to, the offer is said
to be accepted.”
LEGAL RULES AS TO ACCEPTANCE
1.
Acceptance must be given only by the person to whom the offer is
made
Boulten vs. jones -- and Mrs Carlill vs. Carbolic Smoke Bill co
2.
3.
4.
5.
6.
7.
8.
9.
Acceptance must be absolute and unconditional. Case-neale v/s
merret-agreement for sale of land ,afterwards amt. paid in
instalments.
Acceptance must be in the prescribed manner.
The Promisor cannot prescribe the way of refusal.
Rejected offers cannot be accepted untill it is renewed.
The acceptor must be aware of the proposal at the time of
acceptance.
Acceptable may be express or implied.
Communication of acceptance an offer is necessary.
(the case of POWER VS. LEE need to be mentioned here)
Acceptance must be made before lapse or withdrawl of offer.
• Law Relating to communication and
Revocation of Proposal and acceptance
Acc. to sec 3 of the indian contract act , “Communication of
Proposal ,acceptance of proposal and revocation of Proposal and
Acceptance, respectively are deemed to be made by an act or
omission of the party proposing , accepting or revoking by which he
intends to communication such proposal,acceptance or revocation.
The various rules applying on the above situations can be divided into four
parts :-
•
•
A. communication of proposal
B. Communication of acceptance
C. Revocation of proposal
D. Revocation of acceptance
Methods or Modes of Revocation of
offer
According to section 6 of the contract Act, the
following are the modes by which an offer can be
revoked :1.
2.
3.
4.
5.
6.
7.
8.
9.
By offer
By lapse of time
Not being accepted according to the mode prescribed
By non-fulfillment of essential precondition
By death or instainty of the proposer
By counter-offer
By death or insainty of the acceptor
By change in law
By non-acceptance or rejection of the proposal
Communication and Acceptance of special
Conditions
Case--Parker v/s S.E.R. Railway Company