SUMMARY TEMPLATE - WHAT IS PROPOSAL?
- Definition (Section 2(a))
- A proposal is when a person signifies their willingness to do or abstain from doing something to
obtain the assent of another.
- Essentials of a Proposal
1. Minimum Two Persons A proposal requires at least two parties.
2. Willingness to Act or Abstain Must be clearly communicated.
3. Intention to Obtain Assent Proposal must aim for acceptance without conditions.
- Examples
* To do an act: A offers to paint Bs house for 10,000.
* To abstain from an act: A offers not to sue B if he stops playing loud music after 9 PM.
- Rules Related to Proposal
1. Section 9 Proposal/Acceptance can be:
- Expressed (oral or written).
- Implied (gestures, conduct, or circumstances).
2. Legal Intent Must be capable of forming a legal relationship.
3. Rejection Ends Proposal Once rejected, proposal cannot be accepted again.
(Case: Hyde v. Wrench, 1840)
- Invitation to Proposal (Not a Proposal)
- Indicates readiness to receive offers, not to form a contract.
- Examples: Advertisements, price lists, auctions, etc.
- Case: Harvey v. Facey (1893) Quoting a price is not an offer.
- Kinds of Proposal
- Definition (Section 2(a))
- A proposal is when a person signifies their willingness to do or abstain from doing something to
obtain the assent of another.
- Essentials of a Proposal
1. Minimum Two Persons A proposal requires at least two parties.
2. Willingness to Act or Abstain Must be clearly communicated.
3. Intention to Obtain Assent Proposal must aim for acceptance without conditions.
- Examples
* To do an act: A offers to paint Bs house for 10,000.
* To abstain from an act: A offers not to sue B if he stops playing loud music after 9 PM.
- Rules Related to Proposal
1. Section 9 Proposal/Acceptance can be:
- Expressed (oral or written).
- Implied (gestures, conduct, or circumstances).
2. Legal Intent Must be capable of forming a legal relationship.
3. Rejection Ends Proposal Once rejected, proposal cannot be accepted again.
(Case: Hyde v. Wrench, 1840)
- Invitation to Proposal (Not a Proposal)
- Indicates readiness to receive offers, not to form a contract.
- Examples: Advertisements, price lists, auctions, etc.
- Case: Harvey v. Facey (1893) Quoting a price is not an offer.
- Kinds of Proposal
