BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -When two parties make an identical offer to each other, in ignorance to each other’s offer, they are said to make cross offers.

Detailed explanation-2: -Offers of both A and B cross each other. Such offers do not constitute to acceptance of one’s offer by the other. Counter Offer: On the other hand, in counter offer there is a rejection of the original offer and a new offer is made that needs acceptance by the original promisor before a contract can be made.

Detailed explanation-3: -Cross Offer For example, both A and B send letters to each other offering to sell and buy A’s horse for Rs 5000/-. This is a cross offer, but it will be considered as acceptable for either of them.

Detailed explanation-4: -Two offers which are similar in all respects made by two parties to each other, in ignorance of each other’s offer are known as cross offers. Cross offer donot amount to acceptance of one’s offer by the other. Hence, no contract is entered into cross offers.

Detailed explanation-5: -Acceptance in ignorance of offer For an acceptance to be made, it is necessary that the offeree must have knowledge of the offer but if the offeree without knowing the offer performs certain actions that are prescribed in the offer then too it won’t constitute a valid acceptance.