Introduction:-
Contract Plays a crucial role in our day-to-day lives.On going to shopping and purchasing clothes or talking job in a company,everywhere we make a contract with another party. The two parties enter in a contract in which one party offer and the second party accept the offer in lieu of some consideration.
What is an Offer :-
Offer is Defined under section 2(a) of the Indian Contract Act,1872.
It states as “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 to such act or abstinence,he is said to make a proposal”.
The person making the proposal is called the “Promisor” or “Offeror” and the person accepting the proposal is called the “promisee” or “offeree”.
Illustration
Person A says to Person B that “will You purchase my house for Rs. 800000?”. In this case the Person A is Offeror and Person B is offree.
Essentials of a valid Offer:-
A) The offer may be “Expressed” or “Implied”:- The offer may be expressed orally or in writing and can also be implied by the conduct, action or act of the offeror.
Example :- Ankur says to Anil he will sell his car to Anil for Rs.500000. This is an Expressed Offer.
B) An Offer must create a legal relationship:- It is very important that offer must create a legal relationship which creates a legal obligation and legal consequences in the case of non-performance of the contract.
C) Offer must be certain and definite :- An offer must not be vague and should have clear and definite terms. The proposal or offer must be made with the goal of winning the offeree’s approval. Example: if ‘X’ is selling ‘Y’ an item, then they should specify what item is being sold, and what set price is decided for its sale.
D) Ab Offer must be communicated :- The offeree must be aware of the offer proposal. The offer must be communicated to the offeree before he can accept it. Untill the offer is made known to offree, there can be no acceptance and no contract.
In Lalman Shukla v. Gauri Datt the Defendent’s nephew absconded from home. He sent his servant,the Plantiff, in search of his nephew.After the servant had left, the defendant announced a reward of some amount of money to anybody giving the information about the boy. The servant before seeing the announcement had traced the boy and informed to the defendant. Later, on reading the announcement of reward, the servant claimed for the reward. His suit was dismissed on the ground that he could not accept the offer,unless he has knowledge of it.
E) An offer can be made subject to any terms & conditions :- An offer may contain some specific condition. The offeree must decide whether to accept the offer under those restrictions.
Classification of offer
A) Express Offer :-An offer may be made by express words, spoken or written. This is known as Express offer.
Example-When ‘A’ says to ‘B’, “will you purchase my car for Rs 2,00,000”?
B) Implied Offer :-An offer may be derived from the actions or circumstances of the parties. This is known as Implied offer.
Example-There is an implied offer by the transport company to carry passengers for a certain fare when a transport company operates a bus on a particular route.
C) General Offer:-A general offer is not made by any specified party. It is one that is made by the public at large. Any member of the public can, therefore, accept the offer and have the right to the rewards/consideration.
Example-‘A’ advertises in the newspaper that whosoever finds his missing son would be rewarded with 2 lakh. ‘B’ reads it and after finding the boy, he calls ‘A’ to inform about his missing son. Now ‘A’ is entitled to pay 2 lakh to ‘B’ for his reward.
D) Specific Offer:-It is the offer made to a specific person or group of persons and can be accepted by the same, not anyone else.
Example-‘A’ offers to sell his house to ‘B’. Thus, a specific offer is made to a specific person, and only ‘B’ can accept the offer.
E) Cross offer:- Two parties make a cross-offer under certain circumstances. It means that both make the same offer at the exact time to each other. However, in either case, the cross-offer will not
amount to accepting the offer.
Example:-‘A’ and ‘B’ both send letters to each other offering to sell and buy B’s house at the same time. This is the cross offer made where one party needs to accept the offer of another.
F) Counter-offer:- A counter-offer is an answer given to an initial offer. A counter-offer means that the original offer has been refused and replaced by another. The counteroffer offers three choices to the
original offerer; accept, refuse, or make another offer.
Example :-if A offers B a car for 10 Lakhs, B agrees to buy for 8 Lakhs, this amounts to a counter offer and it would mean a rejection of the original offer. Later on, if B agrees to buy for 10 Lakhs, A may refuse.
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