Offer and kinds of offer contract act LLB Notes

Offer and kinds of offer

Definition of Offer [section 2(a)]:-

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 person either to such act or
abstinence, he is said to make a proposal.
To form an agreement or contract, there must be at least two elements – one offer and the other
acceptance. Thus offer is the foundation of any contract.

“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.”

A proposal is a promise to be bound on particular terms.
The person who makes an offer is called “Offeror” or “ Promisor” and the person to whom
the offer is made is called the Offeree” or “Promisee”.

Example 

Mr. A says to Mr. B, “Will you purchase my car for Rs.1,00,000?” In this case, Mr. A is
making an offer to Mr. B. Here A is the offeror and B is the offeree.

KINDS OF OFFER

1)Express offer ;-

     When the offeror expressly communication the offer the offer is said  to be an express offer the express communication of the offer may be made by  Spoken word  or Written word .

2)Implied offer ;-

     when the offer is not communicate expressly. An offer may be implied  from:-

• The conduct of the parties or 
• The circumstances of the case 

3) Specific:-

 It means an offer made in

(a) a particular person or

(b) a group of person: It can be accepted only by that person to whom it is made communication of acceptance is necessary in case of specific offer.

 4)General offer: - 

It means on offer which is made to the public in general.  General offer can be accepted by anyone.
If offeree fulfill the term and condition which is given in offer then offer is accepted.  Communication of acceptance is not necessary is case of general offer.

Example 

Company advertised that a reward of Rs.100 would be given to any person who would suffer
from influenza after using the medicine (Smoke balls) made by the company according to the
printed directions.

One lady, Mrs, Carlill, purchased and used the medicine according to the printed directions of
the company but suffered from influenza, She filed a suit to recover the reward of Rs.100. The
court held that there was a contract as she had accepted a general offer by using the medicine
in the prescribed manner and as such as entitled to recover the reward from the company.       
(Carlill v Carbolic Smoke Ball Co. 1893 )

5)Cross offer: - 

When two parties exchange identical offers in ignorance at the time of each
other’s offer the offers are called cross offer. Two cross offer does not conclude a contract. Two offer are said to be cross offer if they are  made by the same parties to one another  Each offer made in ignorance of the offer made by the the terms and conditions contained in  both the offers’ are same.

Example:-

 A offers by a letter to sell 100 tons of steel at Rs.1,000 per ton. On the same
day, B also writes to A offering to buy 100 tons of steel at Rs.1,000 per ton.

Counter offer: -

 when the offeree gives qualified acceptance of the offer subject to modified
and variations in the terms of original offer. Counter offer amounts to rejection of the
original offer.

Legal effect of counter offer:-

(1) Rejection of original offer

(2) The original offer is lapsed

(3) A counter offer result is a new offer.

In other words an offer made by the offeree in return of the original offer is called as a
counter offer.

Example: 

A offered to sell his pen to B for Rs.1,000. B replied, “ I am ready to pay Rs.950.” On A’s refusal
to sell at this price, B agreed to pay Rs.1,000. Held, there was not contract as the acceptance to
buy it for Rs.950 was a counter offer, i.e. rejection of the offer of A. Subsequent acceptance to
pay Rs.1,000 is a fresh offer from B to which A was not bound to give his acceptance