by words of mouth, or by writing or conducting in a manner, which has the effect of

communicating the offer to the offered . Section 9 explains the way of the communication, it
is said to be express. In so far as such proposal or acceptance is made otherwise than in
words, promise is said to be implied.”
in the case haji Mohd Ishaq v. Mohd Iqbal, The defendant acknowledged goods supplied by
the claimant and paid part of the price as well. It was held that the defendants were liable to
pay the balance left because their actions signified the plan and its approval.
The defendant called the fire brigade in upton rural district council v.powell (as fire broke out
in his farm) claiming he was entitled to the free service.

COMMUNICATION OF OFFER(WHEN COMPLETES)

Section 4 of the act specifies when a communication is complete. According to it

Communication of a proposal is complete when it comes to the knowledge of the party to
whom the proposal is made.
For example, if A sends a proposal in the mail to B and if the mail is lost, it can be held that
the communication of the proposal is not complete. In the case of Lalman vs Gauri Datta, it
was held that the reward for the missing child cannot be claimed by a person who traced the
child without any knowledge of the announcement. In this case the plaintiff without knowing
the reward brought the lost nephew of defendant. . There was no contract between the two in
the first place because the proposal never came to the knowledge of the person who found the
child and thus he could never accept it. In Williams V. Carwardine, in this case plaintiff
knowing the reward announced gave some necessary information of a murder. It was valid
contract and it was held that she was entitled to claim. In Tinn V. Hoffman it was held that
cross offer cannot be treated as valid contract. In case of general offer(selling of goods) the
offer is made considering a large number of people, so anyone who accepts the offer can sue,
it was held in Carlill V. Carbolic Smoke Ball Co.

According to sec 4 of the act the Communication of the acceptance is complete, as against the
promisor, when it is put in course of transmission to the promisor so as to be out of the power
of the acceptor, as against the acceptor, when it comes to the knowledge of the promisor.
For example, as soon as B drops a letter of acceptance in mail back to A, A is bound by the
promise. However, B is not bound by it unless A receives the acceptance letter. In the case of
Adams v. Lindsell , it was held that a contract arose as soon as the acceptance was posted by
the acceptor. In this case, the plaintiff received the offer to sell wool on 5th and they posted
an acceptance, which was received on 9th by the defendants. The defendants, however, had
already sold the wool on 8th. The court observed that the contract must arise as soon as the
acceptance is posted and is gone out of the reach of acceptor otherwise this will result in an
infinite loop.

HOW AN OFFER IS MADE?

“An offer can be made by (a) any act or (b) omission of the party proposing by which he
intends to communicate such proposal or which has the effect of communicating it to the
other (Section 3).1 An offer can be made by an act in the following ways:”
(a) “By words (whether written or oral). The written offer can be made by letters,
telegrams, telex messages, advertisements, etc. The oral offer can be made either in person or
over telephone.”
(b) “By conduct. The offer may be made by positive acts or signs so that the person acting or
making signs means to say or convey. However silence of a party can in no case amount to
offer by conduct. An offer can also be made by a party by omission (to do something). This
includes such conduct or forbearance on one’s part that the other person takes it as his
willingness or assent.”
“An offer implied from the conduct of the parties or from the circumstances of the case is
known as implied offer.2”
Examples
(1) “A proposes, by letter, to sell a house to Bat a certain price. This is an offer by an act by
written words (i.e., letter). This is also an express offer.”
(2) “A proposes, over telephone, to sell a house to Bat a certain price. This is an offer by act
(by oral words). This is an express offer.”
(3) A owns a motor boat for taking people from Bombay to Goa. The boat is in the waters at
the Gateway of India. This is an offer by conduct to take passengers from Bombay to Goa.
He need not speak or call the passengers. The very fact that his motor boat is in the waters
near Gateway of India signifies his willingness to do an act with a view to obtaining the
assent of the other. This is an example of an implied offer.

1
THE INDIAN CONTRACT ACT, 1872 section 3
2
THE INDIAN CONTRACT ACT,1872 Paperback – 2015 by Narendra kumar
Specific and General Offer
An offer can be made either:
1. To a definite person or a group of persons, or
2. To the public at large.

“Essential elements of an offer:-

(1) There must be two parties.
(2) The offer must be communicated to the offeree.
(3) The offer must show the willingness of offeror. Mere telling the plan is not offer.
(4) The offer must be made with a view to obtaining the assent of the offeree.
(5) A statement made jokingly does not amount to an offer.
(6) An offer may involve a positive act or abstinence by the offeree.
(7) Mere expression of willingness does not constitute an offer.
A tells B’ that be desires to marry by the end of 2008, if does not constitute an offer
of marriage by A’ to B’ A further adds will you marry me. Then it become offer.3”

Legal Rules as to valid offer:-

Offer must be communicated to the offeree: 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.4
Example: LALMAN SHUKLA (VS) GAURI DATT. (1913)
Facts: 'S' sent his servant to track down his missing son,' L.' He then declared that anyone
who finds the nephew would be entitled to a reward. In ignorance of his announcement' L'
traced the kid. He declared it afterwards, when he came to learn of his reward.

Judgment: He was not entitled for the reward.5

2. The offer must be certain definite and not vague unambiguous and certain.
Example:

3
Pollock & Mulla - The Indian Contract Act, 1872 page 110-112

4
THE INDIAN CONTRACT ACT, 1872 SECTION 4
5
Indiancaselaw.com/lalman Shukla vs gauri dutt
Example: A vendable to B. 100 tons of crude' The bid is unclear, because there is nothing to
prove what sort of oil will be offered.

3. The offer must be capable of creating legal relation. Not having legal partnership is a
social invitation. A social invitation, even if accepted, does not establish legal relationship
because legal relationship is not so planned. Therefore, when accepted an offer must be such
that it will result in a binding contract.

Example: B has been invited to a dinner and B has accepted the invitation. This is a pure
invitation to society. And A is not responsible

4. Offer may be express and implied

The bid may be express or implied; a bid may be both explicit and implied. An offer that is
conveyed by words, whether written or spoken, is called an express bid. The bid conveyed by
action is called an implied bid .[Section 9].
5. Communication of complete offer
Example:
A offer to sell its pen for Rs.1,000 to B. B answered, "I'm willing to pay Rs.950" B has
agreed to pay Rs.1,000 on A's refusal to sell at this amount. Held, at the acceptance there was
no deal to buy it for Rs.950 was a counter bid, i.e. rejection of A's bid.
Subsequent acceptance of paying Rs.1,000 is a fresh B bid that A was not expected to accept.

6. Counter offer –A counter offer amounts to rejection of the original offer

7. Cross offer do not conclude a contract
8. An offer must not thrust the burden of acceptance on the offeree.
Example:
A made a contract with B and said he would favorably consider his case for the extension of
the contract if he was happy as a client. The commitment to establish a legal connection is too
ambiguous.
The acceptance cannot be presumed from silence.
Acceptance is valid only if it is communicated to the offeror.
9. Offer must be distinguished from invitation to offer.