1. What is an “offer”? When is it complete? State the rules of a valid offer.

An offer is a promise made by one party (the offeror) to another party (the offeree). The offer is in exchange
for performance by the other party.

The communication of offer is complete when it comes to the knowledge of the person to whom it is made.
In case an offer is made by post, its communication will complete when the letter containing the offer
reaches the offeree.

A person who is not the intended offeree cannot accept the offer. A person cannot accept an offer without
knowing about it. Example: an offer of a reward that is made to certain people or to the general public
cannot be accepted by someone who has never seen or heard of the offer

If the offer is missing essential information, then it is incomplete and legally ineffective.

All offers must identify the price, the subject matter, and the quantity. The amount of essential information
depends on how complex the transaction is.

In most states the essential terms for the sale of real estate lots would include: identity of the specific lot,
price, full terms for payment, date for delivery of possession, and date for delivery of the deed. If any of the
terms were missing then it is not a valid offer. Example: The Great American offers candy bars for sale. The
price is identified, the subject matter is identified.

Rules of valid offer”

 The offer must have its terms definite and clear.

The terms of offer should be clear and definite and certain.If the terms of the offer are not certain , it
is not a valid offer as its not clear what exactly the parties inted to do.

 The offer must be capable of creating a legal relationship

If the offer does not intend to ive rise to legal relationships when accepted it is not valid offer in the
eyes of the law.Offer must be such that when accepted it will result in valid Contract

 The offer must be communicated to the other party

The offer is completed only when It has been communicated to the offeree.Until the offer is
communicated it cannot be accepted.Thus an offer accepted without its knowledge, does not confer
any legal rights on the acceptor.

 An offer must be distinguished from an invitation to offer

An invitation to offer is an action inviting other parties to make an offer to form a contractIn case of
invitation to offer the person sending out the invitation does not make an offer but only invites the
 other party to make an offer. It is a prelude to an offer inviting negotiationsor preliminary
disucssions.E: Goods dispayed in the shopwith the price marked on them is an advertisement for
sale of oods by auction, catalouges of prices are all examples of invitation to offer.

 An offer must be distinguished from a mere declaration of invitation

 A statement of price is not a offer
 Offer should not contain a term, non compliance of which would amount to acceptance
 The offer may contain any number of conditions

2. Attempt the following problems, giving reasons:-

A] Over a cup of coffee in a restaurant, A invites B to a dinner at his house on a Sunday.

B hires a taxi and reaches A’s house at the appointed time, but A fails to perform his promise.
Can B recover any damages from A?

Answer: No.
B cannot recover the damages from A as both the parties share a social relationship and there is no intention
to create a legal relationship. So, it was just an agreement which is not enforceable at law.

B] M mows L’s lawn without being asked by L to do so. L watches M do the work but does not attempt to
stop him. Is L bound to pay any charges to M?

Answer: Yes.
L is bound to pay the remuneration as he didn’t stop him from mowing the ground so his implied silence is
equivalent to speech here

C} P applied for the principal’s post of a local college, and the Governing Body passed a resolution
appointing him. After the meeting, a member of the Governing Body privately informed him of the
resolution. The resolution was subsequently rescinded. P claims damages. Will he succeed?

Answer: P cannot claim damages as there was no proper communication of acceptance.