Standing Offer meansa)Offer allowed to remain open for acceptance over a period of time.b)Offer made to the public in general.c)When the offeree offers to qualified acceptance of the offer.d)Offer made to a definite person.Correct answer is option 'A'. Can you explain this answer?

Question

Answer

Standing Offer means
A standing offer refers to an offer that is allowed to remain open for acceptance over a period of time. It is a type of offer that is made by one party to another with the intention of creating a binding agreement between them. The offeror makes the offer and the offeree has the option to accept or reject it within a specified time frame.

Explanation:
Standing offers are commonly used in business transactions where the terms and conditions of the offer are already established. The offeror provides the offeree with the opportunity to accept the offer within a certain period of time, usually specified in the offer itself. This allows the offeree to consider the offer and make an informed decision.

Benefits of a Standing Offer:
1. Flexibility: A standing offer provides flexibility to the offeree as they can accept the offer at any time during the specified period. This allows them to assess market conditions, negotiate better terms, or wait for a more favorable opportunity.

2. Time-saving: With a standing offer, the offeree does not need to engage in lengthy negotiations or create a new offer each time they wish to accept. They can simply accept the standing offer as long as it is within the specified time frame.

3. Certainty: A standing offer provides certainty to both parties involved. The offeror knows that their offer will remain open for a specific period, and the offeree knows that they have a set amount of time to accept or reject the offer.

4. Competitive Advantage: For the offeror, a standing offer can provide a competitive advantage by attracting potential customers who are interested in the offer but require time to make a decision.

Conclusion:
In conclusion, a standing offer is an offer that remains open for acceptance over a period of time. It provides flexibility, saves time, offers certainty, and can give a competitive advantage to both the offeror and the offeree. By allowing the offeree to accept the offer within a specified time frame, a standing offer allows for better decision-making and potential business opportunities.

Answer

The various reasons are applied:
1) Offer must be such as in law is capable of being accepted and giving rise to legal relationship.
2) An offer must be communicated to other party.
3) Offer must be made with a view to obtaining the asset.
4) A statement of price is not an offer.

Answer

Standing Offer means:
A standing offer refers to an offer that is allowed to remain open for acceptance over a period of time. It is a type of offer that is not limited to a specific time frame and provides the offeree with the opportunity to accept the offer at any time within the stated period. This type of offer is commonly used in business transactions and contracts.
Here are some key points to understand about standing offers:
1. Definition:
- A standing offer is an offer that remains open for acceptance for a specified period of time.
- It is also known as an open offer or continuing offer.
2. Duration:
- A standing offer has a specific duration during which it remains open for acceptance.
- The duration can be determined by the offeror and can vary depending on the nature of the offer and the agreement between the parties.
3. Flexibility:
- Unlike other types of offers that have a fixed deadline for acceptance, a standing offer provides flexibility to the offeree.
- The offeree can accept the offer at any time within the specified period without the need for further negotiations or reissuing of the offer.
4. Use in Business:
- Standing offers are commonly used in business transactions, especially in procurement processes.
- A supplier may make a standing offer to provide goods or services at a fixed price for a specified period.
- Government agencies and organizations often make use of standing offers to streamline their purchasing processes and establish long-term relationships with suppliers.
5. Revocation:
- The offeror has the right to revoke a standing offer before it is accepted by the offeree.
- Once the offer is accepted, it becomes a binding contract between the parties.
In conclusion, a standing offer is an offer that remains open for acceptance over a specified period of time. It provides flexibility to the offeree and is commonly used in business transactions. The offeror has the right to revoke the offer before it is accepted.

Similar CA Foundation Doubts

Standing Offer means

When the offeree offers to qualified acceptance of the offer subject to modifications and variations he is said to have made a

A offers to sell his house to B, who agrees to purchase it subject to approval by B’s solicitors. Which one of the statements in correct?

The acceptance may be

Top Courses for CA FoundationView all

Quantitative Aptitude for CA Foundation

Accounting for CA Foundation

Business Laws for CA Foundation

Business Economics for CA Foundation

Mock Tests & Past Year Papers for CA Foundation

Top Courses for CA Foundation

Top Courses for CA Foundation

Suggested Free Tests

Related Content

CA Foundation Courses

Other Courses

How To Prepare?

Other Exams

Company