er and acceptanceOffer(i.e. Proposal) [section 2(a)]:-When one person signifies to another his willingness to do or to abstain from doing anything, with a view to obtaining the assent of that other person either to such act or abstinence, he is said to make a proposal.
To form an agreement, there must be at least two elements – one offer and the other acceptance. Thus offer is the foundation of any agreement.
“When one person signifies to another his willingness –
1 to do or to abstain from doing anything,
2 with a view to obtaining the assent of that other to such act or abstinence, he is said to make a proposal.”
The person who makes an offer is called “Offeror” or “ ...view middle of the document...
A’s nephew has absconded from his home. He sent his servant to trace his missing nephew. When he servant had left, A then announced that anybody who discovered the missing boy, would be given the reward of Rs.500. The servant discovered the missing boy without knowing the reward. When the servant came to know about the reward, he brought an action against A to recover the same. But his action failed. It was held that theservant was not entitled to the reward because he did not know about the offer when the discovered the missing boy.
2. The offer must be certain definite and not vague unambiguous and certain.
A offered to sell to B. ‘a hundred tons of oil’. The offer is uncertain as there is nothing to show what kind of oil is intended to be sold.
3. The offer must be capable of creating legal relation. A social invitation is not create legal relation.
A invited B to a dinner and B accepted the invitation. It is a mere social invitation. And A will not be liable if he fails to provide dinner to B.
4. Offer may be express and implied
The offer may be express or implied; An offer may be express as well as implied. An offer which is expressed by words, written or spoken, is called an express offer. The offer which is expressed by conduct, is called an implied offer [Section 9].
5. Communication of complete offer
A offered to sell his pen to B for Rs.1,000. B replied, “I am ready to pay Rs.950”. OnA’s refusal to sell at this price, B agreed to pay Rs.1,000. held, there was not contract at the acceptance to buy it for Rs.950 was a counter offer, i.e. rejection of the offer of A. Subsequent acceptance to pay Rs.1,000 is a fresh offer from B to which A was not bound go give his acceptance.
6. Counter offer – A counter offer amounts to rejection of the original offer
7. Cross offer do not conclude a contract
8. An offer must not thrust the burden of acceptance on the offeree.
A made a contract with B and promised that if he was satisfied as a customer he would favorably consider his case for the renewal of the contract. The promise is too vague to create a legal relationship.
1 The acceptance cannot be presumed from silence.
2 Acceptance is valid only if it is communicated to the offeror.
9. Offer must be distinguished from invitation to offer.
Example: Menu card of restaurant is an invitation to put an offer.
Price – tags attached with the goods displayed in any showroom or supermarket is also an invitation to proposal. If the salesman or the cashier does not accept the price, the or the cashier does not accept the price, the interested buyer cannot compel him to sell, if he wants to buy it, he must make a proposal.
Job or tender advertisement inviting applications for a job or inviting tenders is an invitation to an offer.
Example: An advertisement for auction sale is merely an invitation to make an offer and not an offer for...