10 Questions
An offer can be accepted even if the offeree is not aware of it.
False
A counter-offer is a type of acceptance of the original offer.
False
An offer must be made with the intention of obtaining the assent of the other party.
True
An offer can be accepted even if the terms and conditions are not communicated.
False
A person who is ignorant of the offer can be said to have accepted it if they fulfill the conditions stipulated in the offer.
False
An offer can be revoked at any time even after acceptance by the offeree.
False
An uncommunicated offer is a valid offer.
False
The acceptance of an offer must be in the exact terms and conditions as stipulated in the offer.
True
An offer made through a telephone but not heard by the offeree is a valid offer.
False
The communication of an offer is only complete when it comes to the knowledge of the person to whom it is made.
True
Study Notes
Essential Elements of a Valid Contract
- Agreement should be clear and specific to avoid confusion
- A contract must be capable of being performed, and impossible acts are not valid
- Certain contracts must fulfill legal formalities, such as being in writing (e.g., sale of immovable property)
Characteristics of a Valid Offer
- Must be certain, specific, and unambiguous (e.g., Taylor v Partington)
- Must be made to another person, not to oneself
- Must give rise to legal consequences and be capable of creating legal relations
- Must be made by someone who is alive and of sound mind
- Automatically revoked if what is offered becomes illegal or is destroyed
- Lapses after a specified time limit, unless renewed
Types of Offers
- Specific Offer: Made to a particular person or group (e.g., a discount for school children)
- General Offer: Made to the general public without specification (e.g., a hotel's services)
- Cross Offer:
- Counter Offer: Rejects the original offer and proposes new terms
- Expressed Offer: Made through spoken or written words (e.g., a letter offering to sell a house)
- Implied Offer: Implied by a person's conduct (e.g., a bus company's services)
Communication of Offer
- Must be communicated to the offeree in the intended manner
- Un-communicated offer is not a valid offer and cannot be accepted (e.g., Lalman Sukla v Gouri Dutt)
- Communication of proposal is complete only when it comes to the knowledge of the person to whom it is made
Learn about the essential elements of a legally binding contract, including clarity and possibility of performance. Understand how unclear or impossible agreements can lead to confusion and invalid contracts.
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