Legal Aptitude for CLAT: Introduction to Contract Law
(Offeror) A I will sell my car to you for Rs.5 lacs consideration. B (Offeree)
The above sentence is the foundation of a contract. Lets see how.
Offer is made by A to B. An offer is an expression of willingness. A is willing to sell his car to B.
Consideration of Rs. 5 lacs is asked by A from B. A consideration is basically something of value to either party. In simple terms,it is what you get in return of an exchange.
(Offeror) B I will buy the car for Rs. 5 lacs. A (Offeree)
In the above sentence,the offeree has given his consent to buy the car for the asked price.
Acceptance,is the expression of absolute and unconditional consent. It can be given orally (as in above case) or in written (when B would have sent a letter to A accepting the terms).
How about some bargaining here?
(Offeror) B I will buy the car for Rs. 4.5 lacs. A (Offeree)
Here,the offeree is trying to negotiate,i.e. offering a new price. Thus,this becomes an invitation to offer. A legal maxim,”invitatio ad offerendum” stems from it. It is to note,an invitation to offer is not binding on either parties,they can freely decline the offer.
In India,contract law is governed by The Indian Contract Act,1872. English law/common law of U.K. also serves as precedent in taking note of the cases in India.
This was the basics of Law of Contract,we will continue further with other aspects of Contract Law and questions for CLAT.