General Concept and Aspects of Contract and Negligence for Business Essay - 3

General Concept and Aspects of Contract and Negligence for Business - Essay Example A asks B, â€Å"Are you interested in buying this house?† A has not made an offer but is merely asking B if he is interested in making an offer. B replies, â€Å"I’ll pay you  £50000† for this house.† B has made an offer to A and A is at liberty to accept or reject it. In a market where various articles are marked for prices, the marking of price does not mean that the sellers have made offers to sell these items. These are merely invitations to offer. The sellers can refuse to sell these items despite the goods being marked for the price. Communication of offer means that it should be made known to the offeree. The mere desire of entering into an agreement, which is never mentioned to the offeree and remains hidden in the recesses of one’s mind, can never be regarded as an offer. Similarly, when an offer is made through a letter, it is not regarded as an offer until the letter is posted and it reaches the offeree. Also, the offer must reach the offeree through the offeror or his duly authorized agent. If the offeree comes to know of the offer through some outside source, the offer is not valid. An offer can be made generally to the public through the newspaper. But if it is intended for a particular individual, it should be made directly to that individual. Once the offer is made, it needs to be accepted by the offeree for the formation of an agreement. It must be absolute and unqualified. There must be consensus ad idem i.e. both parties must agree to the same thing in the same sense. This means that the offeree should agree to all the terms of the offer. A qualified acceptance is not a valid acceptance. It is regarded as a counter-offer and it terminates the original offer as soon as it is made. If the original offeror agrees to the terms of the counter-offer, an agreement is created. Acceptance should be communicated to the offeror.