General principles of contracts (part two)

1. What is Proposal and Offer?
This section deals with the definition of offer that is valid under law and the various
types of offers like General offers and General offers in continuity. And how those
types of offers can be accepted and turned into a contract valid under law.

2. What is communication of proposal and how is it
done?
According to the Indian Contract Act, 1872, the communication of the proposal is
deemed by an act of the party proposing or accepting an agreement by which he
intends to communicate such proposal and agreement to the other party or which
has the effect of communicating it.

3. What are implied proposals?
An implied offer is one that’s implied rather than overtly stated. For instance, a
person who buys a product from a seller assumes that the product functions
properly without a seller explicitly claiming that the product works. An agreement
stems from the offer, and the offer is then construed as the proposal. According to
the Contract Act, a person who makes an offer, when he or she implies to another
party regarding the validity of a product or service, has officially entered into an
implied offer agreement.

4. How can proposals and acceptances be revoked?
A proposal can only be revoked at any time before the communication of
acceptance is complete as against the proposer and not afterwards.
An acceptance can be revoked at any time before the communication of
acceptance is complete as against the acceptor and not after that.

5. What is the Supreme Court’s view on the
requirement of intention? And Conclusion.
A Supreme Court bench comprising of Justices Rohintan F. Nariman and Sanjay
Kishan Kaul dealt with the issue of requirement of intention. The courts deal with
intention to create a contract by two approaches to establish the intention. Either
the objective approach or subjective approach.
The Indian Contract Act, 1872 comprehensively deals with contracts and explains
what constitutes a valid contract and what the essentials of the contracts are. This
document deals with several parts of contracts and how it is applied with respect
to personal and business relationships.