Offer and Acceptance

Bailment

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Offer and Acceptance

Offer:- When one person signifies to another his willingness to do or to
abstain from doing anything, with a view to such act or abstinence, he is
said to make a proposal.
Essentials

of proposal:- There are three essential part of proposal. These

are:
abstain

(1) It must be an expression of ones willingness to do or to

from doing from something.

from

(2) It must be an expression of ones willingness to do or to abstain

doing something to another person.

from
the

(3) It must be an expression of ones willingness to do or to abstain

doing from something must be made with a view to obtaining
assent the other person to such act.

Rules regarding to offer:

(1) Offer may be expressed or implied.
(2) Offer may be specific or general.
(3) Offer must have an intention to create legal relationship.
(4) Offer must be clear, define and unambiguous.
(5)Offer must be communicated to the offeree.
(6)Offer may be conditional.

Rules of acceptance:
(1) Acceptance may be express or implied.
(2) Acceptance may be specific or general.
(3) Acceptance must be absolute and unqualified.
(4) Acceptance cannot be conditional.
(5) Acceptance must be communicated to the offeror.
(6) In case of general offer acceptance need not to be communicated.
(7) Acceptance must take place before the laps of time.

Invitation to offer:
Invitation to offer is an advertisement inviting others to make an offer. It
is not an offer, which capable of being turned into an agreement by
acceptance. Thus,
(1) Auction
(2) A Catalogue of goods
(3)Advertisement of job
(4) Quotation of price
(5)Time table.

Case study analysis:

Problem No: 1
Harish says in conversation to Suresh that he will give Rs.10,000 to a
person whosoever marries his daughter. Alok marries Harishs daughter
and files a suit to recover Rs.10,000.
Will he succeed?

Solution:
No, Harish has expressed his wish only and has never made an offer with a
view to obtaining the assent of the other party. It is not an offer because it
is a
simple conversation.
Offer means when one person signifies to another his willingness to do or
to abstain from doing anything, with a view to obtaining the assent of
that other to such act or abstinence, he is said to make a proposal.
Now, we say that it is not an offer it is a simple conversation.
Problem No: 2
X sees a book displayed in selling of a book shop with a price tag of Rs.85.
X tenders Rs.85 on the counter and ask for the book .The book seller
refuses to
sell saying that the book has already been sold to someone else
and he does
not have another copy of that book in the stock.
Is the book seller bound to sell the book to X?
Solution:
No, a display of goods with prices market thereon is only an invitation for
offer , and not an offer itself .Hence the bookseller is free to accept the
offer
or not .It is a simply invitation offer not a direct offer.
Invitation to offer is an advertisement inviting others to make an offer .It is
not
an offer, which is capable of being turned into an agreement by
acceptance.
Now we say that, it is an invitation to offer not an offer.

Problem No: 3
B offered to sell his car to A for Rs 95,000. A accepts to purchase it for Rs 94,500. A
accept to purchase it for Rs 94,500. B refused to sell the car for Rs 94,500.
Subsequently
A agree to purchase the car for Rs 95,000. But B refused to sell the
car. A sues B for the
specific performance of the contract.
Will he succeed?
Solution:
No, Bs offer comes to an end by the counter offer of A and there was no offer
available for acceptance subsequently.
Counter offer means when a contract create against another contract is called
counter offer.
Now we say that it is a counter offer, not an acceptance.
Problem No: 4
sent

P sold his business to Q without disclosing this to his customer. M, an old customer
an order for goods to P by name. Q, the new owner, executed the order.
Is M bound to accept the goods?

Solution:
No, M is not bound to accept the goods because a specific offer made to P can be
accepted only by P and none else.
An offer is said to be specific when it is made to a definite person or persons.
So we can say that it is a specific offer.

Bailment
Bailment:- A bailment is the delivery of goods by one person to another for some purpose upon a
contract that they shall, when the purpose is accomplished, be returned or otherwise disposed of
according to the direction of the person delivering them.
Essential

elements of a bailment:

(1) It is a delivery of movable goods by one person to another.

(2) The goods are delivered for some purpose.
(3) The goods are delivered subject to the condition.
Kinds

of Bailment:

Bailment may be classified from the point of view of(1)Benefit to the parties.
(2)Reward to the parties.
Kinds from benefit point of view(a) Bailment for the exclusive benefit of the bailor.
(b) Bailment for the exclusive benefit of the bailee.
(c) Bailment for the mutual benefit of the bailor and bailee.
Kinds from Reward point of view(a) Gratuitous bailment.
(b) Non- gratuitous bailment.

Duties of Bailee:
(1) Duty to take reasonable care of goods delivered to him.
(2) Duty not to make unauthorized use of goods intrusted to him.
(3) Duty not to mix goods bailed with his own goods.
(4) Duty to return the goods.
(5) Duty to deliver any accretion to the goods.

Termination of bailment:
(1) If the bailment is for a specified period.
(2) If the bailment is for a specific purpose.
(3) A gratuitous bailment can be terminated by the bailor at any time,
even before the specified time or before the purpose is achieved.
(4) A gratuitous bailment is terminated by the death either of the bailor
or of the bailee.
(5) If the bailee does any act with regard to the goods bailed, which is
inconsistent with the terms of bailment.

Case study analysis:

Problem no 1:
Mr X has 100 bag rice in a godown. He has an important work before going to village. Mr X
handling over the key of the goods to Mr Y for seven days. After six days, he returned from
village and wanted his goods. He saw in the godown with 900 bags rice available and 100
bags no more. Mr X sue against Mr Y for 100 bags of rice immediately.
Is there any Bailment? Is Mr X succeed in the sue?
Solution:
Yes, it is a bailment. Because one of the essential element is delivery of movable goods and it
can be two types- actual and constructive. When Mr X delivered the key of the godown to
Mr Y, which is a constructive delivery of movable goods. So Mr X will succeed in the
sue
against Mr Y.
Problem no 2:
A gaves some cloth to the tailor Mr X who is As uncle for making a suit of it. The tailors
charges are settled at Rs 5,000. After the suit is ready Mr X hand over the suit A with the
taking
any charges.
Which kind of bailment it is?
Solution
It is bailment for the exclusive benefit of bailor as well as a gratuitous bailment.
When bailor leaves goods in the safe custody of the bailee without any compensation to be
paid and a gratuitous bailment is one in which neither the bailor nor the bailee is entitled
to
any remuneration. As here Mr X has no benefits and a exclusively benefited, so
its a bailment
for the exclusive benefit of bailor and here is no remuneration. So it is
also a gratuitous
bailment.

Problem no 3:

A lends a horse to B for his own riding only. B allows C, a member of his family, to
ride the
horse. C rides with care but the horse accidently falls and is injured. Who is liable
to make
compensate?
Solution:
B is liable to make compensate to A for the injury done to the horse.

Bailee has some duties to follow, Duty not to make unauthorized use of goods. is
one of
them. If bailee makes any unauthorized use of the goods, he is liable to make
compensation to the bailee for any damage arising to the goods from or
during such
use of them. This liability is absolute. It arises even if the bailee is not
guilty of any
negligence, or damage is the result of
an act of God or
nevitable accident. As B
allow c to ride the horse by making unauthorized
use of it, so simply B has to
bear the liability.

the

Problem no 4:
A gave his watch to his little brother B for use it. B promises A to deliver the watch on
third day. But A want his watch back on the second day. B files suit against A, will he
succeed?
Solution:

No, he wont. As it is a gratuitous bailment, it can terminated any time by A.A

gratuitous
bailment can be terminated by the bailor at any time, even before the
specified time or
before the purpose is achieved, subject to the limitation that where
such termination
causes lose in excess of benefit actually delivered by the bailee,
the bailor must
indemnify the bailee for the amount in which the loss
occasioned exceeds the benefit
derived. As A gave his watch to B without
remuneration, so its a gratuitous bailment and
A can terminated this bailment
whenever he wants. B will never succeed.

Conclusion

We have already solved some cases regarding Offer & Acceptance

and Bailment in business. As we are in ongoing process to be a
business graduate we will have to face some difficulties regarding
business in our professional life. So we must have to know the laws
regarding running a business and also many aspects of business.
This report will help us to meet up the problems that we may face in
future if there is any ambiguity in case of Offer & Acceptance and
Bailment.

THANK YOU
THE END