image credits- The Editors' Weekly- Editors Canada
Offer is an expression of willingness on a specific set of terms, made with the intention that, it shall become binding as soon as it is accepted by the person to whom it is addressed.
What is acceptance?
Acceptance is an expression of absolute and unconditional consent to all the terms set out in the offer, it can be oral or in writing. Acceptance must be exactly the mirror image of the original offer made.
What is consideration?
Is something of value given by the offeree to the offerer in exchange for something of value. It may consist of a promise to perform a desired act or a promise to refrain from doing an act that one is legally entitled to do. Consideration should have a value that can be objectively determined.
What is a counter offer?
An offer made in response to a previous offer by the other party during negotiations for a final contract. Making a counter offer automatically rejects the prior offer, and requires an acceptance under the terms of the counter offer or there is no contract. Counter offer is made against the original offer, where the other-party changes the original offer and modified offer is made to the original offerer.
What is invitation to offer?
An expression of willingness to negotiate. A person making an invitation to offer does not intend to be bound as soon as it is accepted by the person to whom the statement is addressed. An invitation to offer is an action inviting other party to make an offer. The distinction is important because accepting an offer creates a binding contract while accepting an invitation to offer is making an offer.
What is a contract?
They are agreements between two or more persons, to achieve a particular purpose, specifying the rights and duties between each other. The law governing contracts entered between the parties in India comprises both Indian Law- Indian Contracts Act, 1872 and general principles of law that are established and accepted in the United Kingdom- Common Law.
For an agreement to become a contract that is to be enforceable by law, it has to fulfil certain conditions-
1. The agreement should be by free consent;
2. of parties competent to contract;
3. for a lawful consideration;
4. with a lawful object;
5. and should not be declared to be void by the Indian Contract Act.
Another principle related to that of enforceability is that of 'Privity of Contract'. This means that a contract grants rights only to the persons who are parties to the contract and no other third person, even if such a person is deriving a benefit from the contract (although there are some exceptions to this).
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