Agreement

Offer + acceptance = agreement.

Every promise or set of promises
forming consideration or each
other
Offer and acceptance
Offer or proposal is made by a person
called offeror.
Acceptance of the offer is made by a
person called offeree
What agreements are contract

All agreements are not contracts but
only those agreements that create
legal obligations and are
enforceable by law are called as
contracts.
Enforceable by law = an agreement
must fulfill certain conditions.
Essentials of a valid
contract.[sec.10]
Parties to a contract.
Legal capacity to enter into a contract.
Consensus ad idem=identity of minds.
Lawful consideration.
Free consent.
Lawful object.
Legal obligation.
Possibility of performance.
Terms must be certain.
Legal formalities if any is to be complied with.



All contracts are agreements
but all agreements are not
contracts.
Agreements that are not contract.
That involves only moral obligations.
One without consideration.
That obtained by coercion, undue
influence ,fraud or misrepresentation
etc.
Where parties are not competent.
Uncertain terms and conditions.
Unlawful object.
offer
Starting point in the formation of a
contract.
When one person signifies to another
his willingness to do or to abstain from
doing anything, with a view to
obtaining the assent o other o such act
or abstinence he is said to make an
offer.
Different kinds of offer.
Express offer-expressed by words.
Implied offer-conduct o parties.
General offer to the public at large.
Specific offer-to a particular person.
Cross offer-making similar offers
simultaneously to each other.
Counter offer-acceptance made with
changes in the offer made
Essentials of valid offer
Terms of offer must be certain and definite.
Offer must be communicated.
Contractual intention.
Offer can be express or implied.
Offer can be specific or general.
Offer should not contain a term, the non compliance
of which will be assumed as acceptance.
An invitation to offer is not an offer.
Specific terms If any is to be communicated to the
other party.
How an offer is lapsed.
after the stipulated time.
Death or insanity of offeror before
acceptance.
By subsequent legislative intervention.
Revocation of offer by the offeror.
Rejection of offer by the offeree.
Counter offer by the offeree.
Acceptance.
Assent or consent given to the offer by
the offeree.
As per the act
When the person to whom the offer is
made signifies his assent thereto, the
offer is said to be accepted.



Different kinds of acceptance.
Once an offer is accepted an
agreement or a promise between
offeror and offeree.
Express acceptance-by words.
Implied acceptance-by conduct of the
offeree.
Essentials of a valid
acceptance.
Must be absolute and unconditional.
Must be made by offeree.
Must be made only after the knowledge of
the offer.
Must be communicated to the offeror.
Must be in the prescribed mode.
Must be in time.
must have a Contractual intention.
Communication when gets
completed.
Offer-communication is complete
when it comes to the knowledge of
offeree.
In case of post letter-when the letter
of offer reaches offeree.
If through Telephone - as soon as
offeree hears the words of offer.
Communication of acceptance-
when it is complete.
As against offeror -when posted, duly
stamped and properly addressed.
As against the offeree-when it reaches
the offeror.



Revocation of offer and
acceptance.
An offer can be revoked at any time
before it is accepted.
Acceptance can be revoked by offeree
at any time before it reaches the hands
of the offero.
Under English law-acceptance to
an offer is what a lighted match to
a train of gun powder