Meaning and Definition of Offer and Acceptance

Question 1.
In relation to the formation of a valid contract explain the meaning of an offer and
acceptance with definition; describe any FOUR (4) circumstances under which an offer may be
terminated. 1000
Answer:
A contract is an assentation enforceable by law. The law of contract is the premise of commerce.
Each trade action is decided and guided by the understanding of the concerned parties. In reality,
the law of contract is concerned with everyone and each perspective of the trade to perform any
kind of act. And it is concerned with the rights and commitment of the parties entering into it.
Supreme Court of Nepal defines contract as, “An agreement of two or more parties with
condition of contract”.
Meaning and definition of Offer and Acceptance:
Offer means to give or ask something in order that it should be accepted or rejected. It is
basically the proposal of the first party to another party. Offer is the fundamental aspect of any
contract. If a person or institution signifies willingness to do or not to do something with an
expectation of obtaining an assent of that person or institution then it is known an offer.
Offeror is the person who make the offer and offeree is the person to whom the contract was
made.
Offer the kind of proposal forwarded by one party to another that is related to do or not to do any
work or activity willing to enter into a bargain.
Section 504(3) (1) of the Civil Code, 2074 defines the term as, “Offer means an offer made by
one person to another person with the intent of obtaining his or her acceptance to do or abstain
from doing any act.”
Richard, “An offer is an expression of willingness to contract on certain terms made with the
intention that a binding agreement will exist once that offer is accepted.
Example:- Sales of good Contract
 The buyer promises to pay the price of goods or services

 The seller promises to deliver the goods or services.
Acceptance is outlined as the consent or assent signifying to the offer. It is simply an act of
expressing assent of an offer by any person or institution. It is the final result in which final offer
creates a contractual relationship between the parties that is bounded by contractual rights and
obligations.
It is manifestation by offeree of his willingness to be bound by the terms of offer which is an

assent given for the proposal made by the offerer.
Section 504(3) (2) of the Civil Code, 2074 defines acceptance as “Acceptance means the
acceptance given by the person to whom the offer has been made in the same meaning in which
the offer is made.”
An offer is terminated in the following circumstances.
i. Revocation: - Revocation is the situation in which an offer is withdrawn by the offerer.

Offer can revoke at any time before acceptance takes place. But, before acceptance the
revocation should be communicated effectively to offeree . This communication is not
necessary to be made personally rather can be communicated via mail, post, telegram, etc.
If the offeree accepts the offer by post, namely letter, the postal policy / rule would strictly
apply and would not permit to withdrawal. Contrary, once the offer is accepted and acted
upon, it cannot be revoked, this would be considered as incompliance or it would be
considered as a breach of contact.
ii. Rejection: - This is the situation when the offer is refused by the offeree. Rejection is
effective only when it is received by the offeror or Offeror’s agent. A counteroffer by the
Offeree is the rejection of the original offer and making of a new offer.
iii. Conditional Offer: - An offer which explicitly gives that it is to end on the event of a few
condition cannot be acknowledged after that condition has happened; and such a
arrangement may moreover be suggested. In other words, end of an offer may too happen
due to a condition not being met. For case, the offer was made in a suggested condition, to
be specific the car keeping up in its undamaged state may be a conditional point of
reference. Since the car was stolen from the merchants and harmed, the offer was ended
when the condition comes up short and got to be unfit of being acknowledged.
iv. Death: - The death of either the offeror or the offeree will cause such end: the proper
to accept an standard offer isn't transferable. The unaccepted offer of a expired
individual cannot be changed over into a contract official upon his estate.

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Question 1.

Meaning and definition of Offer and Acceptance:

Example:- Sales of good Contract

 The buyer promises to pay the price of goods or services

It is manifestation by offeree of his willingness to be bound by the terms of offer which is an

An offer is terminated in the following circumstances.

i. Revocation: - Revocation is the situation in which an offer is withdrawn by the offerer.

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