OFFER AND ACCEPTANCE
OFFER
Meaning and Definition of Offer
The primary element of a valid contract is an agreement between the
parties to the contract. An
agreement comes into existence by a lawful offer by one party and lawful
acceptance by the
other party. An offer is a proposal by one party to another to enter into a
legally binding
agreement with him. According to Section 2 (c), “the person making the
proposal is called the
‘promisor’ or offeror or proposer; the person to whom it is made is called
the offeree or proposee
and the person accepting the proposal is called the ‘promisee’ or
acceptor.”The British refer to it
as ‘offer’ but in the Indian Contract Act, it is called a ‘proposal.
According to Section 2 (a) of the Indian Contract Act, “when one person
signifies to another his
willingness to do, or to abstain from doing, anything with a view to
obtaining the assent of the
other to such act or abstinence, he is said to make a proposal”.
A person making the proposal expresses that he is willing to contract on
the terms stated in it
provided the other party to whom the proposal is made will likewise
express his assent to the
same terms. Section 2 (a) reveals three essential elements in an offer:
i) Expression of willingness to do or not to do something,
ii) made to another person i.e., a person cannot make an offer to himself,
iii)with the object of gaining the consent of the other person to such act or
abstinence.
Types of Offer
Offers or proposals may be classified on the basis of —
1) How an offer is made?
, 2) To whom an offer is made?
1. How an Offer is made: An offer may be either express or implied from
the conduct of the
parties.
a) Express Offer: An express offer is one which may be made by words
spoken or written
such as letter, telegram, telex, fax message, e-mail or through internet.
For example,
when A offers to sell his dissection box to B for Rs. 400, it is an express
offer.
b) Implied offer: An implied offer is one which may be gathered from the
conduct of the
party or the circumstances of the case. Stepping into a local bus,
consuming eatables at a
restaurant, shinning shoes by a shoe shiner, without being asked to do so
etc. create
implied promises to pay for the benefits enjoyed.
2. To Whom an Offer is made: An offer may be made to —
a) a particular person or a particular group or body of persons,
b) the public at large i.e., the whole world.
a) Specific Offer: An offer made to a definite person or a body of persons
is called a
specific offer. A specific offer can usually be accepted only by the person
or persons to
whom it is made.
b) General Offer: When an offer is addressed to the whole world, it is
called a general
offer. A general offer is accepted by any one.
For example, where A promises to give Rs. 100 to B if he brings back his
missing horse, this
is a specific offer and can only be accepted by B; but if A issues a public
advertisement to the
OFFER
Meaning and Definition of Offer
The primary element of a valid contract is an agreement between the
parties to the contract. An
agreement comes into existence by a lawful offer by one party and lawful
acceptance by the
other party. An offer is a proposal by one party to another to enter into a
legally binding
agreement with him. According to Section 2 (c), “the person making the
proposal is called the
‘promisor’ or offeror or proposer; the person to whom it is made is called
the offeree or proposee
and the person accepting the proposal is called the ‘promisee’ or
acceptor.”The British refer to it
as ‘offer’ but in the Indian Contract Act, it is called a ‘proposal.
According to Section 2 (a) of the Indian Contract Act, “when one person
signifies to another his
willingness to do, or to abstain from doing, anything with a view to
obtaining the assent of the
other to such act or abstinence, he is said to make a proposal”.
A person making the proposal expresses that he is willing to contract on
the terms stated in it
provided the other party to whom the proposal is made will likewise
express his assent to the
same terms. Section 2 (a) reveals three essential elements in an offer:
i) Expression of willingness to do or not to do something,
ii) made to another person i.e., a person cannot make an offer to himself,
iii)with the object of gaining the consent of the other person to such act or
abstinence.
Types of Offer
Offers or proposals may be classified on the basis of —
1) How an offer is made?
, 2) To whom an offer is made?
1. How an Offer is made: An offer may be either express or implied from
the conduct of the
parties.
a) Express Offer: An express offer is one which may be made by words
spoken or written
such as letter, telegram, telex, fax message, e-mail or through internet.
For example,
when A offers to sell his dissection box to B for Rs. 400, it is an express
offer.
b) Implied offer: An implied offer is one which may be gathered from the
conduct of the
party or the circumstances of the case. Stepping into a local bus,
consuming eatables at a
restaurant, shinning shoes by a shoe shiner, without being asked to do so
etc. create
implied promises to pay for the benefits enjoyed.
2. To Whom an Offer is made: An offer may be made to —
a) a particular person or a particular group or body of persons,
b) the public at large i.e., the whole world.
a) Specific Offer: An offer made to a definite person or a body of persons
is called a
specific offer. A specific offer can usually be accepted only by the person
or persons to
whom it is made.
b) General Offer: When an offer is addressed to the whole world, it is
called a general
offer. A general offer is accepted by any one.
For example, where A promises to give Rs. 100 to B if he brings back his
missing horse, this
is a specific offer and can only be accepted by B; but if A issues a public
advertisement to the
