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Offer and acceptance


Offer and proposal are same in the meaning Definition: According to Indian Contract Act 1982, Sec 2(a), When one person signifies his willingness to do or to abstain from doing anything; with a view to obtaining the assent of that other to such act or abstinence, he is said to make a proposal

Three essential of the proposal:

It must be an expression of the willingness to do something or not do something Such expression must be to the other person. One cannot propose anything to oneself The object must be to obtain the assent of that other person to what is being proposed.

Parties to the proposal

Promisor: The person making the proposal or offer is called as promisor.
Promisee: The person accepting the proposal or offer is called as promisee.

Rules regarding the valid offer:

1. An offer may be express or implied: Offer expressed in words is an express offer Offer which is inferred from the conduct of a person is an implied conduct

2. Creating enforceable legal relations:

An offer must aim at creating legally enforceable obligations between the parties. Proposal creating social obligations is not considered as a valid offer.

3. Terms must be certain:

If the terms to the proposal are not definite and clear, it does not mean a lawful proposal. Horse Case

4. An invitation of offer is not an offer

An offer is different from an invitation of offer In case of invitation of offer, a person does not make an offer but he invites for making an offer. Eg: Advt for auction sale, Quotation, Catalogues of price,etc.

5.An offer may be specific or general:

When offer is made to specific person, it is called specific person. When a proposal is made to public at large, it is a general offer. Eg: A has given an advertisement in the newspaper to sell his house for Rs.10,00,000/- .. It is a general offer.

6. An offer must be communicated to the offerer:

A contract is come existence only when:
Offer is made It should be properly communicated It is accepted

The communication of offer is complete when it comes to the knowledge of the person to whom it is made.

7. An offer can be made subject to any terms and conditions:

Proposer can put any terms and conditions The mode of acceptance can also be prescribed in these terms and conditions

8. Two identical cross offers do not make a contract

When two parties make identical offers to each other in ignorance of each others offer, the offer is a cross offer 14th Jan Mr.Harish offered to sell his vehicle to Ms.Rashmi for Rs.30,000/ On the same date, Ms.Rashmi offered to buy same vehicle for same price

9.An offer should not contain such terms, non compliance of which would mean an acceptance of the offer
A person can not say that if the acceptance is not communicated by a certain time, the offer would be considered as accepted. Mr.Amit writes to Mr.Anant that he is offering to buy his old furniture at a throw way price of Rs.10,000/-. He further writes that if Mr.Anant keeps silence, it would amount to acceptance by Mr.Anant. This is not a valid contract

Thank you