Class notes

buisness law

3 views 0 purchase

Course
46466969

Institution
Canadian Coast Guard College (CCGC )

Business law is a crucial component of law in general since, without it, the corporate, manufacturing, and retail sectors would all be under a dictator’s rule. Combining business and law seeks to create secure and efficient working environments for everyone associated with the business. You m...

[Show more]

Preview 3 out of 21 pages

View example

Uploaded on February 28, 2023
Number of pages 21
Written in 2022/2023
Type Class notes
Professor(s) Mr jake
Contains All classes

CA$59.48

Added

Add to cart Add to wishlist

100% satisfaction guarantee
Immediately available after payment
Both online and in PDF
No strings attached

P a g e |1

CHAPTER II
OFFER ACCEPTANCE, CONSIDERATION, CONTRACTUAL CAPACITY

In order to make a contract there must be a definite offer by one party and its unqualified
acceptance by the other. Thus A says to B, "will you buy my car for Rs 80,000/-?" This is an
offer. If B says "Yes", the offer is accepted and a contract is formed.

An offer is the proposal by one party to another to enter into a legally binding agreement with
him.

According to Sec.2 (a) of the Indian Contract Act. An offer is," 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 abstinence, he is said to make a proposal”.

The analysis of this legal definition shows that an offer consists of the following two parts:
1.) Expression of one person's willingness to do or to abstain from doing

something.

2.) Such expression should be made with a view to obtain the assent of the other person
to the proposed act or abstinence.
The person making an offer is called offeror or promisor and the person to whom the

offer is made is known as offeree or promisee.

Essentials and Legal Rules for a Valid Offer:
1. An offer may be expressed or implied :

An offer may be made by words either spoken or written is known as express offer. When the
offer is inferred from the conduct of the party or from the circumstances of the case, the offer
is said to be implied.
For Eg: When a transport company runs a bus on a particulars route there is ar implied offer
by the company to carry passengers to a certain destination fo certain charges.

2. The offer must be communicated to the other party: The offer is complete on when it has
been communicated to the offeree, because the offeree cannot accept an off er unless he
knows about its existence. Until the offer is made known to t offeree, there can be no
acceptance and no contract. An offer accepted without its knowledge, does not confer any
legal rights on the acceptor.

Case Law: Lalman Shukla vs Gauri Dutt

BUSINESS LAW CHAPTER – II

ANJALI VIJAY

, P a g e |2

Gauri Dutt's nephew has absconded from his home, he sent his servant to trace his missing
nephew. When the servant had left Gauri Dutt announced that anybody who discovers the
missing boy would be given a reward of Rs.500 The servant discovered the missin g boy
without knowing the reward. When the servant came to know about the reward he claimed
for the same Gauri Dutt refused to pay the reward the servant Lalman Shukla brought an
action against Gauri Dutt to recover the reward,

Judgment: It was held that Lalman Shukla was not entitled to the reward because he did not
know about the offer when he discovered the missing boy.

3. The offer must be made with the view to obtain the consent of the offeree : When a
person is making an offer it means that he is making it with the view to obtain the consent of
the offeree.

For Eg: A jokingly said that he is willing to sell his house for Rs. 50,000. B knowing that A was
not seriously making the offer said that he was accepted the offer. In this case A's offer is not
the real offer as he did not make it with the view to obtain the consent of B

4. The offer must have its terms definite and clear: The terms of an offer must be definite,
clear and certain. If the terms of the offer are vague and uncertain, no contract will come into
existence. The reason is that when the offer is vague or uncertain, it cannot be said what
exactly the parties intended to do. For Eg: A offered to sell 100 tons of oil the offer is uncertain
as there is nothing is mentioned what kind of oil is intended to be sold.

A offered to sell to B his cycle for Rs 500 or Rs 1,000. This offer cannot be accepted as it is not
clear.{the price )

5. The offer must be capable of creating legal relationship: An offer must be such that when
accepted it will result in a valid contract. A mere social invitation cannot be regarded as an
offer, because if such an invitation is accepted it will not give rise to any legal relationship. For
eg, A invited B to a dinner and B accepted the invitation. It is mere social invitation. A will not
be liable if he fails to provide dinner to B.
Case Law: Balfour w/s Balfour.

6. The offer must express final willingness of the offeror: The terms of the offer should be
such that they contain the final willingness of the offeror. Sometimes, a party does not
express his final willingness but proposes certain terms on which he is willing to negotiate. In
such case he is not making an offer because he is not expressing his final willingness to enter
into a contract.
BUSINESS LAW CHAPTER – II

ANJALI VIJAY

, P a g e |3

7. The offer must be distinguished from an answer to a question: The terms of an offer
should be clear so that there is no confusion whether it is a valid offer or an answer to a
question. An answer to a question cannot be taken as an offer.

Case Law: Harvey V's Facey:

In this case 3 telegrams have been exchanged between Harvey & Facey Harvey sent a
telegram to Facey "will you sell us Bumper Hall Pen (plot of land), quote the lowest
prices".Facey replied by telegram "Lowest price for the Bumper Hall Pen is 900 pou nds"
Harvey sent a telegram stating "I agree to purchase the Bumper Hall Pen for 900 pounds esked
by you please send your title deeds". Facey refused to sell the plot of land at that price. Harvey
brought a legal action against Facey It was held that Facey did not make any offer to sell at
that price. He simply answered the question asked by Harvey. The court observed that Harvey
asked the following questions in the 1st telegram:

1. Willingness to sell

2. Lowest price.
Facey replied only to the 2nd question that is lowest price and reserved his answer to
willingness to sell Therefore, he had made no offer. Therefore, there is no concluded contract
between Harvey & Facey.

8. The offer may be made the world at large: It means that it is not necessary that an offer
should be made for specific person. An offer may be specific or General. A specific offer is one
which is made to an ascertained person. A general offer is one which is not made to a specific
person but to the public at large. A general offer is also a valid offer.
Case Law: Carlill v/s Carbolic smoke ball Co.:

Carbolic smoke ball company advertised in the newspaper that anyone who would take,
according to the printed direction. The smoke balls (A kind of medicine) manufactured by it,
would not contact the increasing influenza or cold. The reward of 100 pounds was offered by
the company to anyone who contacted influenza or cold, after having used the smoke balls
according to the printed directions. It was also added that 1000 pounds are deposited with a
bank to show the sincerity of the company.

Mrs. Carlill after reading the advertisement used the smoke balls according to the printed
directions, but subsequently suffered from influenza. She approached the company and
demanded the reward announced by the company. The company refused to pay the reward
on the ground that this offer is not addressed Mrs. Carlill and they do not have any contract
with her. Mrs. Carlill filed a suit against the company for the recovery for reward

BUSINESS LAW CHAPTER – II

ANJALI VIJAY

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller adithacharya. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for CA$59.48. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

75632 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling