Offer and acceptance - specifics

  An offer can be general or specific. Let us suppose a reward is offered through an advertisement to any person who finds and returns the advertiser’s lost certificate. Anyone who returns the lost certificate is eligible for the reward. The offer here is general as anyone can accept it. Usually an offer can be accepted by that person only to whom it is made.

 An offer remains as such until it lapses, or is revoked by the offerer or rejected or accepted by the offeree.  When does an offer lapse?  An offer lapses (1) if it is not accepted within the specified time (2) if it is not accepted in the mode prescribed (3) if it is rejected by the offeree, and (4) if the offeree makes a counter offer in which case the acceptance will have to be done by the original offerer.

 But can the offerer withdraw his offer? Withdrawal of an offer is also known as revocation of an offer. An offer may be revoked any time before it is accepted. Revocation shall be communicated to the offeree and this communication shall reach him before he sends out his acceptance. Can a proposal for life insurance sent to a life insurance company be withdrawn by the proposer before the insurance company “accepts” it? Obviously, the proposer can withdraw his proposal before it is accepted by the insurer.

Does any such condition apply to the offeree? Yes. (1) Acceptance may be oral, written or implied   (2) Acceptance shall be in the manner prescribed in the offer      (3) Acceptance must be unqualified (4) A counter offer or conditional acceptance amounts to rejection   (5) Acceptance shall be communicated, before revocation of offer.


Key words:

Offer
Acceptance
Withdrawal of offer
Counter offer