Answer to the short answer questions /Offer and Acceptance
The answers are prepared for very short answer questions under the subject of business law. We upload all the matters covering the entire syllabus of the university. It is a series to cover the entire syllabus of BBS/BBA.
1. Define the term offer.
Answer:
Offer or the proposal is a fundamental aspect of the contract. When an individual signifies
his or her willingness to do or not to do something with an expectation of
obtaining the assent of that other person then it is called an offer. So it is
an expression of any person to do or abstain from doing something or anything
made to obtain the assent of the other person to whom he or she has made such a
proposal.
Section 504(3) (1)
of the Civil Code, 2074 defines the term as, “Offer means an offer made by one
person to another person with the intent of obtaining his or her acceptance to
do or abstain from doing any act.”
So it is the
proposal of any particular individual to another or a particular group or to
the group of general people with an expectation of getting the acceptance on the matter that he or she has proposed.
2. When is an offer treated as accepted?
Answer:
The person who
has made an offer first has to communicate it to the offeree. If an offer is
not communicated to the offeree it cannot take place as a valid offer. After
making an offer if it is accepted accurately or accepted without any alteration
in the terms and conditions of offer then it will create the contractual
relationship between the parties. Therefore when the person to whom the offer
is made signifies his assent thereto then the offer is said to be accepted. The
accepted offer now becomes a promise. So the offeree or the person to whom the offer
is made has to show some external expression or some words written or spoken or
does some act that could show offer is accepted. Mere acceptance or mental
acceptance is not able to show the information of acceptance of the offer.
3. What is the cross offer?
Answer:
Offer is an
expression of willingness to do or not to do something to another person with
the hope of getting acceptance or hope of creating legal relations. If both of
the parties of the contract make their offer innocently or honestly to each
other at the same time through any medium, then such an offer is called cross
offer. This type of offer is also known as an identical offer. A cross offer is
not capable to create a contract. There must be an offer from only one side and
the counter side, there should be acceptance.
4. When communication of offer completed?
Answer:
Communication of
offer is an important factor while creating a contract. Communication of offer
means informing about the offer to the party to whom it is made. When the
contracting parties are face to face there is no problem of communication of
offer to the offeree. But when a party sends his offer through email or other
means then it is to be communicated to the offeree. The offer can be
communicated expressly by writing in words or through spoken words and by
impliedly through conduct. When such an offer or communication of offer made by
the offeror comes to the knowledge of offeree then the communication of offer
is said to be completed.
5. State the characteristics of the offer.
Answer:
The major
features of offer are as below;
· It is an
expression of offerer’s intention regarding anything,
· It is related to
doing or not doing something
· It is made with
the hope of getting acceptance from the person, to whom it is made,
· It can be made
by expressed words of mount or written words or by the conduct impliedly
· It may be of
general or specific,
· It turns into
promise when it is accepted by the offeree,
· It should be
communicated to the offeree.
6. What is the general offer?
Answer:
Offer can be
classified into general and specific based on to whom it has made. When an
offer is made or when the offer covers the entire population of a group of all
the people then it is known as a general offer. It is not made for a particular
person in the group. In case of a general offer, the offeror does not know who
will be the offeree and anyone can be the offeree in such a case. It cannot
create a contract until it has been accepted by a person among the large
people.
7. Who are offeree and offeror?
Answer:
There are two
parties in the contract. One is the person who has made an offer to or not to
do something and another is the person to whom such offer or proposal has been
made. Thus the person who makes an offer or who signifies his or her
willingness to do or not to do anything is called offerer and the person to
whom it has made is called the offeree. Offeree becomes acceptor after he or
she accepts the offer.
For example, A
offers B to sell his car for Rs. 5000. Here A is the offerer and B is the offeree.
A has expressed his willingness to sell his car for Rs. 5000 and B is the
person to whom A has made such an offer. So B is the offeree.
8. Who can accept the offer?
Answer:
In general, the
person to whom it is made should accept the proposal or offer. But sometimes
the person to whom it has made by the offerer is not sure in such case anyone
among the people can accept the offer. It is the case of a general offer. So if
the offer is specific and the offeree is mentioned or known them he or she only
can accept the offer but if the offer is general then anyone can accept the
offer among the large people to whom the offer has been made by the offeror.
9. When an offer can be revoked by a notice of
revocation?
Answer:
Offer can be
revoked or terminated by the offeror before its acceptance by the offeree. So
the offeror can revoke his or her offer by giving the notice of revocation to
the offeree. However, the notice of revocation must be given to the offeree before
his or her acceptance comes to the knowledge of the offerer. In such a case
contract is called terminated but non-matching of such condition cannot
terminate the offer and contract are deemed to be concluded. The only condition
is that the notice of revocation by the offeror should be served to the offeree
before the acceptance of the offer.
10. What is acceptance?
Answer:
Acceptance is
defined as the consent or assent signified to the offer. Thus it is an act of
expressing assent to the offer by the party to whom it is made is called
acceptance. It is the outcome of the expression of assent. Acceptance of the
person to whom the offer is made creates the contractual relationship between
the parties and will bound by contractual rights and obligations.
Section 504(3) (2)
of the Civil Code, 2074 defines acceptance as “Acceptance means the acceptance
given by the person to whom the offer has been made in the same meaning in which
the offer is made.”
11. What are the characteristics of acceptance?
Answer:
The major
characteristics of acceptance are as below;
· It is an
expression of willingness to be bound by the terms of the offer,
· It represents
the assent and consent of the offeree to do or not to do something,
· It is also given
to enter into a legal relationship,
· It concludes the contract between parties,
· It is
necessarily made by the offeree to whom the offer has been made.
12. How acceptance is communicated?
Answer:
Like the
communication of offer, acceptance also must be communicated to the offeror to
be regarded as valid acceptance. When the offeree accepts the offer he or she
must inform about his or her assent to the offeror and if he or she does not do
it, the contract is not formed. Communication of acceptance is the process or
system of providing information about the acceptance of offer or proposal
formally to the offeror. In this regard, acceptance is considered as
communicated when the offeror gets notice or letter of acceptance by the
offeree. It means when the letter of acceptance is received by the offeror, the
communication of acceptance is considered as completed.
13. How an offer is accepted impliedly?
Answer:
The acceptance
of an offer may be impliedly or expressly. Acceptance made in written form or
word of mouths then it is called expressed acceptance and if it is made by
behavior or conduct then it is called implied acceptance. Using a public
vehicle is an example of implied acceptance. When offeree without writing any
words and saying any words from the mouth, doing some work, or performing
symbols that show his or her acceptance then the offer is called accepted
impliedly.
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