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Contract Law (Offer (Terminology (Offeror: The party who makes the offer,…
Contract Law
Offer
A person is said to make an offer when he indicates to another his willingness to enter into a
contract on the terms which he sets out in the offer.
Terminology
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Once the offeree accepts the offer, an agreement comes into being
General Rules
An offer may be made to
a group of persons - if so, someone from the group can accept
the world at large - if so, anyone may accept by complying with the terms
a single, definite person - if so, only that person can accept the offer
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An offer must be communicated to the offeree before it can be accepted. The offeree
cannot accept an offer unless he knows of its existence.
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Termination
Revocation of the offer
An offer can be revoked at any time before it is accepted but the revocation must be
communicated to the offeree.
This means that the offeree must actually know of the revocation of the offer by the offeror.
) Rejection by Offeree
the offeree makes a counter offer. A counter offer is a new offer made by the offeree by
modifying the original terms of the offeror's offer.
The party who made the original offer may accept the counter offer which then becomes a binding
contract but the offeree who makes the counter offer cannot change his mind and revive the
original offer unless the offeror agrees to do so.
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) Lapse of offer
Where the offer has not been accepted within the prescribed time. If there is no time limit
set, it lapses after a reasonable time.
Death of either offeror or offeree before acceptance. Death after acceptance does not affect
the contract.
Introduction
The Law of Contract is a very important part of the business
world.The rules in this area touch
every one of us almost daily,
particularly at the workplace. Knowledge of these laws would help
you to plan and manage your business activities better and also to protect your interests.text
Definition
A contract is an agreement which is enforceable by law between two or more persons for some
purpose, their intention being to create a legally binding contract.
Elements of Contract
The basis of a contract is an agreement. To have an agreement, there must be a meeting of
minds. Thus, if one party has one thing in mind and the other party has something else in mind,
there is no agreement, hence no contract. An agreement is usually found to exist when one party
makes an offer which the other party accepts. The use of “Offer” and “Acceptance” is essential for
determining whether a contract exists.
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CONSIDERATIONS
defintion
It is some benefit or profit to one party or some detriment or loss suffered or undertaken by the other
The requirement "something for something" is called consideration. The party making the promise must gain some benefit for the promise while the party receiving must suffer some detriment.
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