Business Law Contract Revocation of Offer

Presented By;

Aqib Rehman

Muhammad Ahmed

Behram Alam

Business

“Any legal or lawful activity which is done for the purpose of earning profit”

Law“Any rules and regulations which are adopted by people to preform its function if these rules are broken then sanctions are to be imposed”

Contract “An agreement enforceable by law is contract” For Example:Ahmed promises to sell his plot to Behram for Rs. 5 Lac. It is a legal agreement because it creates legal obligations and is enforceable at law.

All contracts are agreement But

All agreements are not contracts.

Schematic View

7

Offer/Proposal Promise Agreement ContractOffer/Proposal Promise Agreement Contract

Revocation of Offer

Notice of Revocation

Ahmed, at an auction gives the highest bid to buy goods of Behram. He withdraws the bid before the fall of hammer. The offer is revoked.

Lapse of Time

Ahmed offered to buy shares of a company Behram, on 2nd Jul. Behram allotted shares to Ahmed on 22nd Nov. Ahmed refused to accept them. Held, that the offer had lapsed, by delay in accepting.

Failure to Fulfill Condition

Aqib agrees to sell her car to Behram for Rs. 3 Lac, if Behram gets admission in Business Law College. Behram fails to get admission.

The offer is revoked.

Death or Insanity of Offeror

X requested to Y, to give credit to Z and guaranteed payment up to Rs. 1 Lac. X died and Y, in ignorance of this fact, continued to give credit to Z. Y sued X legal representatives on the guarantee. Held, that the legal representatives were liable.

Revocation of offer by Offeree

Aqib offers to sell his cycle to Behram and keeps the offer open for ten days. Behram refuses after three days. It terminates even though the period for acceptance of offer has not yet expired.

Counter offer by Offeree

Aqib offers to sell her house to Behram for Rs. 5 Lac. Behram counter offers Rs. 4 Lac. Later, even if Behram is ready to pay Rs. 5 Lac.

The offer is terminated.

Death or Insanity of Offeree

Aqib offers to sell his house to Nouman. Nouman dies before acceptance.

The offer terminates.

Subsequent Illegality

A offers to sell 10 bags of wheat to B for Rs. 1000. Before acceptance, a law bans the sale of rice.

The offer terminates

Destruction of Subject Matter

Shahab offers to sell her Dog to Ahmed. The cat dies before the acceptance of offer by Ahmed.

The offer terminates.

Prescribed Manner

Ahmed offers to sell his Car to Aqib. Ahmed requests Aqib to give acceptance by telephone. Aqib sends acceptance by letter.

The offer terminates.