offer and acceptance

• Contract


  An agreement enforceable by the law
• Elements to create a valid contract


  • Offer & acceptance
  • Certainty
  • Intention
  • Consideration
  • Legal capacity
  • Legality of objects
  • Free consent
  • Formality
• Offer (proposal)


  When a person signifies to another their willingness to do or abstain from doing anything with a view to obtaining the assent of that other
• Acceptance


  When the person to whom the proposal is made signifies their assent to the proposal
• Promisor


  The person making the proposal
• Promisee


  The person accepting the proposal
• Types of offer/proposal


  • Unilateral proposal
  • Bilateral proposal
• Unilateral proposal


  A one-sided contract where only one party makes a promise to offer payment in exchange for an act
• Bilateral proposal


  A contract or agreement involving two or more parties which binds all parties to their obligations
• Particular person offer


  An offer made specifically to a person to whom it is addressed, only that person can accept
• General public offer


  An offer made to the public at large and addressed to anyone who can satisfy the terms
• Invitation to treat (ITT)


  A preliminary communication which is not an offer, it is an invitation to others to make an offer
• Examples of ITT


  • Price tag/display of goods in a shop
  • Advertisement for a job
  • Auction
• Advertisement for reward is an offer, not an ITT
• Communication of proposal/offer


  A proposal is only complete when it comes to the knowledge of the person to whom it is made
• Proposal may be revoked by the communication of notice of revocation
• Proposal may be revoked at any time before acceptance
• Assent


  To get the agreement of that person
• S. 4 Illustration (a)


  • A proposes, by letter, to sell a house to B at a certain price. The communication of the proposal is complete when B receives the letter.
• Termination / revocation of offer


  1. By giving notice of revocation
  2. By lapse of time
  3. Failure to follow conditions
  4. By death or mental disorder of the proposer
• Reasonable time


  The time needed to do what a contract requires to be done, based on subjective circumstances
• Acceptance


  When the person to whom the proposal is made signifies his assent, the proposal is said to be accepted; a proposal, when accepted, becomes a promise.
• Rules of acceptance


  • Acceptance must be absolute and unqualified

  1. Acceptance must be communicated using usual mode or method
  2. Performance of the conditions of the offer is an acceptance
• Postal rule


  Even though there is no communication of acceptance (the promisor does not know about the acceptance), the contract is valid.
• S.4(2)(a) CA


  The communication of acceptance is complete, as against the proposer, when it is put in the course of transmission to him (when the letter is posted).
• S.4(2)(b) CA


  The communication of acceptance is complete, as against the acceptor, when it comes to the knowledge of the proposer (when the letter is received by the offeror).
• Revocation of acceptance


  An acceptance may be revoked at any time before the communication of acceptance is completed against the acceptor (when the offeror received the letter of acceptance).
• What is the definition of operations management?


  Activities related to the creation of goods or services by converting or transforming inputs into outputs.
• What does an operations system produce?


  The organization's physical goods and services.
• What are the basic components of an operations system?


  • Inputs: Resources like materials, labor, capital, and information.
  • Transformation Process: Activities that convert inputs into outputs.
  • Outputs: Final results, which include goods or services.
• What are the final results obtained after the transformation process in an operations system?


  Goods or services.
• Why is operations management important in an organization?


  It enables understanding of how goods and services are produced.
• What does operations management ensure regarding product delivery?


  Timely delivery of the products.
• How does operations management improve productivity?


  By optimizing the processes involved in producing goods and services.
• What are the objectives of operations management?


  • Efficient production of goods and services
  • Timely delivery of products
  • Improvement of overall productivity
• What are the characteristics of goods and services?


  Goods are tangible, while services are intangible.
• How do inputs, transformation processes, and outputs relate in an operations system?


  Inputs are transformed into outputs through the transformation process.
• What is the role of inputs in an operations system?


  Inputs are the resources that go into the transformation process.
• What is the transformation process in an operations system?


  Activities that convert or transform the inputs into outputs.
• What is the significance of the operations system in an organization?


  It is one of the major functions that produces goods and services.