Offer And Acceptance In Contract Law
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FAQ
An offer is an act on the part of one person whereby he gives to another the legal power of creating the obligation called contract. An acceptance is the exercise of the power conferred by the offer, by the performance of some other act or acts. Both offer and acceptance must be acts expressing assent.
Offer and acceptance: An offer is a statement or action that indicates a willingness to agree. Acceptance is an agreement to the terms of an offer by the other party. An offer must be communicated to the person who is meant to accept it and may be made by words or conduct.
Valid acceptance is acceptance that is made by the specified offeree and that meets the conditions of mutual assent (both parties agree to the arrangement), adequate consideration (each party receives a benefit for the promised goods or services of the other party), capacity (both parties are legally capable of ...
Difference between offer and acceptance: offer initiates the contract formation process and can be revoked before acceptance; acceptance completes the process, confirms agreement, and cannot be revoked once communicated.
Say for example A offers to buy B's car for rupees two lacs and B accepts such an offer. Now, this has become a promise. When the proposal is accepted and it becomes a proposal it also becomes irrevocable. An offer does not create any legal obligations, but after the offer is accepted it becomes a promise.