What is a cross offer and give an example?

Cross-offer is a contract law term that refers to an offer made to another in ignorance that the offeree has made the same offer to the offeror. An offer by A to sell to B on certain terms and an offer by B to buy from A on the same terms unaware of the A’s proposition at that time, is an example of a cross-offer.

What is the difference between counter offer & Cross offers?

Cross offers: These are the offers that party make to each other in ignorance of each others offer. 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.

What is the effect of a cross offer?

It governs entering into a contract, execution of the contract, and the effects of breach of contract. So for a valid contract, there should be an agreement which should also be enforceable by law. Also, the agreement must create a legal obligation or duty.

Can two identical Cross offers make a contract?

Two identical cross-offers made in ignorance of the other do not amount to a contract, unless/until one is accepted.

Is Cross offer an acceptance?

Both the offer and acceptance must be communicated. A cross offer is made when both the parties make identical offers to each other without knowing that the other has made a similar offer. It lacks acceptance and communication. Thus, it does not form a valid contract.

What is missing in a cross offer?

Two cross offer does not constitute a contract. In the cross offer, the offers are made by the same parties to one another, each party not knowing about the offer made by the other party.

How the Cross offer should be?

The terms and conditions of the offer must be clear and not vague. The offer must be made with the intention to form a legal relationship. An offer can either be positive or negative. It can be a promise to do some act, and can also be a promise to abstain from doing any act/service.

What is mistake of fact in business law?

When both parties of a contract are under a mistake of fact essential to the agreement, such a mistake is what we call a bilateral mistake. And so there is no contract at all, i.e. the contract is void due to a mistake of fact.

Is Cross offer valid?

Cross offers are not valid offers. For example- if A makes an offer to sell his car for 7 lakhs to B and B in ignorance of that makes an offer to buy the same car for 7 Lakhs, they are said to make a cross offer, and there is no acceptance in this case, hence it cannot be a mutual acceptance.

Is Cross offer void?

Cross offers can never lead to a valid contract as they lack all the essential ingredients. A cross offer is made when both the parties make identical offers to each other without knowing that the other has made a similar offer. It lacks acceptance and communication. Thus, it does not form a valid contract.

What are the 3 requirements of a valid offer?

Offers at common law required three elements: communication, commitment and definite terms.

• Communicated. The person making the offer (the offeror) must communicate his offer to a person who may then choose to accept or reject the offer (the offeree).
• Committed.
• Definite Terms.
• Other Issues.

What is a cross offer in contract law?

Cross-Offer Law and Legal Definition. Cross-offer is a contract law term that refers to an offer made to another in ignorance that the offeree has made the same offer to the offeror.

What are the essentials of a cross offer?

The essentials of a cross offer are as follows: Same offer to one another: The first pre-requisite of a cross offer is that two or more persons should make similar offers with the same details. Without knowledge: Such identical offers must be made in ignorance of the offer made by the other party.

What is the difference between a counter offer and a cross offer?

Accordingly, there is no counter offer unless it creates a power of acceptance to the previous offeror. On the other hand, cross-offers are similar or identical offers made by two or more persons, one to the other, in ignorance of each other’s offer.

What is offer?

It is also a proposition made by one party called the offeror, to another party called the offered, clearly and precisely indicating the terms under which the offeror is willing to enter into a contract with the offeree. An offer may take many forms.