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Saturday, 25 February 2012

OFFER AND ACCEPTANCE


A Contract is an agreement enforceable by law. An agreement is every promise and every set of promises forming the consideration for each other [Section 2 (e)]

Section 2 (b) defines a promise a follow: “A proposal, when accepted, become a proposal.” It means an agreement is an accepted proposal.
Therefore, these must be proposal or offer by one party and its acceptance by the other party for making an agreement.

A offer to sell his Matiz car to Mr. B for Rs. 3 lakhs. B accepts the offer. It will result into a contract.

So, offer and its acceptance subsequently is the universally accepted process for creating a contract whether it is express or implied.


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