Business Law PDF

COURSE CODE: BBA-510
COURSE TITLE: BUSINESS LAW
GOVERNMENT COLLEGE WOMEN UNNIVERSITY FAISALABAD

BACHELOR OF BUSINESS ADMINISTRATION
ASSIGNMENT
DESCRIBE OFFER AND ACCEPTANCE AND ITS ASSENTIALS IN
DETAIL
SUBMITTED BY
ATTIA ASHRAF(ROLL#132)
BACHELOR OF BUSINESS ADMINISTRATION (6th SEMESTER)
ASSIGNMENT INCHARGE: HEAD OF DEPARTMENT:

MS. ASIA DR. NAUSHEEN SYED
ASSISTANT PROFESSOR
CONTENTS
 OFFER
 MEANING
 PROPER DEFINITION
 ESSENTIALS OF MAKING A VALID CONTRACT
 EXPRESS OFFER
 IMPLIED OFFER
 SPECIFIC AND GENERAL OFFER
 LEGAL RULES AS TO OFFER
 CROSS OFFER
 COUNTER OFFER
 HOW TO MAKE AN OFFER?
 CONDITIONS OF OFFER
 ACCEPTANCE
 DEFINITION
 ESSENIALS OF A VALID ACCEPTANCE
 ACCEPTANCE OF A SPECIFIC OFFER
 ABSOLUTE AND UNCONDITIONAL
 REASOMABLE TIME
 EXPRESS OR IMPLIED
OFFER AND ACCEPTANCE
Offer/Proposal Acceptance
Promise
OFFER
MEANING:
An expression of ability(willingness) by one person to different persons to enter into an
agreement on the terms stated by him with an expectation to urge the assent of the alternatives.
PROPER DEFINITION:
“when a proposal signifies to another his willingness to do or to abstain from doings anything,
with a prospective of obtaining the assent of that other to such act or abstinence, he’s said to form a
proposal”
I will sell my car Yes, I will

for 20k.would purchase it.
you purchase
it?
 The person who’s making the offer is known as the, offeror.

 the individual to whom it’s made is named the, offeree or propose.
 When the offeree acknowledges the offer, he’s called the acceptor or promise
ESSENTIALS OF MAKING A VALID CONTRACT
 Offer shall be conveyed with the opposite party
 The offer shall be made with a view to obtaining consent of the offeree.
 The deal must have definite and clear terms.
 The offer must be capable of maintaining legal relationships.
HOW TO MAKE AN OFFER?
 EXPRESS OFFER:
An offer can be made by verbal, spoken or written wording.
FOR EXAMPLE:
When A says to B, “will you get my house at Karachi for Rs.60,00,000”?
 IMPLIED OFFER
An offer can be deduced from the actions or circumstances of the parties.
FOR EXAMPLE:
If a company operates a bus along a specific route, the company creates an implicit offer
to hold passengers for a specific fare.
One person A group The whole world
 SPECIFIC AND GENERAL OFFER:

 When an offer/proposal is created to a specific individual, or a group of people it is called a specific
Offer.
 When an offer is made to the final public and make the globe at large, it’s called general offer.
FOR EXAMPLE:
 An offers to sell car to B (only) for Rs.2,00,000 (specific offer)
 A car Winner Offers bonus number for 100 pounds (general offer)
LEGAL RULES AS TO OFFER
1. This offer must be appropriate in law and must make to a legal contract
2. Terms of offer must be clear, unambiguous and others must not be loose and unclear
3. If a proposal doesn’t create legal relationship between the two and more than two parties, it’s not
a valid offer
4. In business transactions parties must have legal relationships with other parties.
FOR EXAMPLE: C offer to sell his stock to B for RS,2,00,000 and B agrees. It’s an agreement because
the parties’ intent to form legal relationship. But if C invites the B for having dinner with C and B
accepts the invitation. It doesn’t create professional relation. It’s a social agreement.
 CROSS OFFER
When to parties makes identical offers towards one another without knowing other’s offer,
this is known as cross offer.
FOR EXAMPLE: A writes to B to sell him 1 ton of oil for Rs 1 Lac. On the identical day, B writes
to A to shop for 1 ton of oil for Rs 1 Lac. It’s cross offer.
 COUNTER OFFER
When the offeree makes a fresh offer to the offeror rather than of accepting the initial offer,
it’s called the counter offer.
FOR EXAMPLE:
C offer to sell his car to B for Rs 17 Lac. B makes a counter offer of Rs. 15 Lac. The first
offer is rejected.
CONDITIONS OF OFFER
An offer can contain any condition within its offer. There’s no deal unless it meets all of the
offer's terms. Offeree must accept all the conditions that offeror wants to be full filled otherwise offeror
may accept or reject the acceptance.
FOR EXAMPLE:
B asks B send the reply to his offer by Email but B sends reply by letter. A may reject such
acceptance.
ACCEPTANCE
DEFINITION
A contract emerges out of a proposal being accepted. Acceptance is that the offerer's
acceptance of a proposal.
In other words, it is the offeree 's expression of his ability to be bound by the offers terms. 'If the
offeree shows its approval to the offeror, the proposal shall be approved'.
Section 2(b) defines Acceptance as "If an individual to whom the proposal is formed expresses his
approval thereto, it’s said that the proposal is accepted. A promise is could be a commitment when
accepted”
Essential of Valid Acceptance
Here’s the principles of a legitimate acceptances:
 ACCEPTANCE OF A SPECIFIC OFFER:
When a proposal is formed to a specific individual, he alone will accept it. If every second
person accepts it, then there’s no true offer.
 ABSOLUTE AND UNCONDITIONAL
Acceptance must be absolute and without precondition. If offeree in its acceptance imposes
some condition, it is not a true acceptance but becomes a counter offer.
FOR EXAMPLE:
C offer sells his furniture to B for Rs 70,000. B replies that he can buy it for Rs 65,000. It is
not a valid acceptance.
 REASONABLE TIME
Often, the time limit during which an approval is to be given is fixed. In these cases,
acceptance shall be given within the specified time limit. In case there is no specified time, acceptance
should be granted in a suitable period. The word 'reasonable time' depends on the facts of each case
and the circumstances.
FOR EXAMPLE:
An applied for shares of a company in November but allotments were made in December. A
refused to take delivery of shares. It was held that A could refuse because the offer had expired after
expiry of an appropriate time.
 EXPRESS OR IMPLIED
 When an acceptance is made by verbal or written wordings. It is called expressed acceptance.
 When an acceptance is made by action or conduct, it is known as Implied acceptance.
FOR EXAMPLE:
An offered by letter to sell his cycle to B for Rs 15,000. B accepted his offer and sent a mail
of acceptance. It’s is an expressed acceptance.
Attending a football competition, your implied consent is to injury due to hitting the football.

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COURSE CODE: BBA-510

COURSE TITLE: BUSINESS LAW

GOVERNMENT COLLEGE WOMEN UNNIVERSITY FAISALABAD

ASSIGNMENT INCHARGE: HEAD OF DEPARTMENT:

I will sell my car Yes, I will

 The person who’s making the offer is known as the, offeror.

One person A group The whole world

 SPECIFIC AND GENERAL OFFER:

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