BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -When the offeror communicates an offer to contract, the offeree is not required to accept it, but he or she may choose to do so. Consideration is the legal ability to contract. Advertisements are considered invitations rather than offers.

Detailed explanation-2: -Generally speaking, an offeree must communicate acceptance to the offeror. The moment that a contract is formed by offer and acceptance, each party is bound to its terms. The formation of a contract depends on a meeting of the minds or consensus as to thee terms of the proposed contract.

Detailed explanation-3: -Therefore, it was a valid contract. Acceptance must be in the mode prescribed: The mode of communication of acceptance shall be done in the manner prescribed in the offer. If in case the mode of acceptance is not specified then the acceptance can be communicated in a usual and reasonable manner.

Detailed explanation-4: -“Section 2(b), Indian Contract Act, 1872-When the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted, becomes a promise.” Without the communication of acceptance to the proposer, the offer cannot be accepted.

Detailed explanation-5: -Acceptance of the offer must be in the prescribed manner that is demanded by the offeror. If no such manner is prescribed, it must be in a reasonable manner that would be employed in the normal course of business.