The Contract Act-1872

Offer and Acceptance

1.Formation of contract:

All contracts are made by the process of a lawful offer by one party and lawful acceptance by the other party.

X says to Y “will you bye my house for Tk 50,000? This is an offer. If Y says “yes”, the offer is accepted and a contract is formed. 

 

2.An “offer” involves the making of a “proposal”.

Proposal means ‘when one person signifies to another his willingness to do or to obtain from doing anything, with a view to obtain the assent of other’.

3. Offer:

A proposal is also called an offer. The promisor or the person make the offer is called offeror. The person to whom the offer is made is called the offeree. 

 

4. Promise :

A proposal when accepted becomes a promise.-Sec.2 (b)

The person making the proposal is called the ‘promisor’ and the person accepting the proposal is called the ‘promisee’.

Examples:

a) Specific offer-X says to Y “will you bye my house for Tk 50,000? This is an offer. If Y says “yes”, the offer is accepted and a contract id formed. 

a)(a) Specific offer-P puts up a notice offering to pay a reward of Tk 100 to any student who finds out and returns a book lost in the NUB. Q a student, read the notice and then finds and brings the book to P. P’s notice is an offer and Q is the acceptor.

b)(b) General offer-a transport company runs tramway cars along the streets. This is an offer by the company to carry passengers at the scheduled fares. The offer is accepted when a passenger gets upon on a tram of becoming a passenger.