Offer and acceptance Essay Example | Topics and Well Written Essays - 2000 words

Offer and acceptance - Essay Example Any person who feels that the partner has failed to honor a promise can always seek a legal compensation for the breach. For a contract to occur, there must be other preludes that come in the first place, a contract can only be construed following successful offer advanced by the offeror to the offeree and the offeree responds by agreeing with the terms set by the offeror. The offers made by the offeror to the offeree in most cases are time bound and without communication from the offeree within the specified time, the offeror may consider the offer not considered by the intended person (Elliott, and Frances, 1999). The other important factor in contracts is the mode of communication, if it is determined by the offeror to the offeree, then he/she is bound to use the same means of communication when accepting the offer. If the stated means is not used, then the offeree may not claim breach of contract by the offeror incase there is no response. To understand the formation of a contrac t in commercial law, it is important that we understand into details the components of what makes a contract enforceable legally. In this reference, we are going to look into details what constitutes an offer and acceptance in the formation of a contract, the distinguishing factor between an offer and invitation to treat with reference to presence or absence of an offer to warrant acceptance communication. Offer It is normally made by the offeror to the offeree, it stipulates the terms of the contract and in this sense, the recipient who is the offeree should examine all the factors relating to the terms of the offer and make a judgment to accept or not (Emerson, 2004). Once the offerer has made the acceptance, the contract becomes legally binding. This states that any breach of the terms from the either parties can be determined in the court of law for compensation. Offer can be made orally, faxed, emailed, or written and sometimes the offeror may insist on specific means of commun ication to be used by the offeror when making return communication. This must be adhered to and in the case of non-compliance and the offeree uses another means, contract is said not to have occurred (Emerson, 2004). Invitation to treat is sometimes confused for offer; it simply denotes the willingness of an individual to negotiate a contract with an interested party. Circumstances under which invitation to treat are considered includes, auctions, exhibitions, window displays, and advertisements (Keenan, Denis, and Sarah, 2007). They do not form part of a contract since they are not considered as offer. After the communication of an offer to the intended recipient, the offeree is expected to internalize the offer before making acceptance. The offer should be accepted by the offeree as it reads and any alteration on the offer will be considered counter attack on the offer and kills the spirit of the offer in culminating into a contract. If the offeree considers any change of the term s as communicated by the offeror, they should make up for an add which along with the unaltered initial offer should be communicated to the offeror for consideration (Keenan, Denis, and Sarah, 2007). It is important to note that the communication of the offer can be revoked before the offeree makes the acceptance. This communication will have to be addressed to the offeree individually