2 mark
| -0.25 mark |
60 minutes
What does the term 'suo moto' means in the legal context?
Read the passage carefully and answer the questions based on the passageAn offer must be communicated to the offeree for it to be valid in contract law. Communication is crucial because without it, there can be no acceptance, and therefore, no binding agreement. The offeror can specify how the offer is to be communicated, such as verbally, in writing, or through an action. If the offeree modifies the original offer, it is not considered an acceptance but a counteroffer. A counteroffer introduces new terms and effectively rejects the original offer. The original offeror then has the option to accept or reject the counteroffer. An offer can typically be revoked before acceptance, but revocation must be effectively communicated to the offeree. If the offeror provides something in exchange for the offeree's consideration, such as time or exclusivity, the offer can become irrevocable for a specified period. In such cases, the offeror is bound to honor the terms for the duration unless the offeree decides to accept or reject the offer. A counteroffer occurs when the offeree proposes terms different from the original, and it renders the initial offer void. This process allows the negotiation to evolve, with the original offer being replaced by the counteroffer unless it is accepted. An irrevocable offer, such as in an option contract, remains open for acceptance during the designated period and cannot be revoked, typically because of mutual consideration or a binding promise by the offeror.When can an offer be revoked in contract law?
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