OFFER

What is an offer
1. Offer

 Offer/ Proposal: [Section 2(a)]

– When one person signifies to another his willingness to do
or 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.

– Example:
A say to B that he wants to sell his car to him for Rs. 8 lacs.
–
Mode of offer:
Offer may be:
 Express offer: When offer is made in words
spoken or written, the offer is "express offer".
 Implied offer: When offer is "expressed by
conduct", the offer is implied.
Scope of offer: Offer may be:

 Specific offer: When offer is made to a particular

person, or a particular class of person, and that
could be accepted by that particular person or that
particular class of person, the offer is specific.
 General offer: When offer is made to the world at
large, and that could be accepted by anyone
performing the conditions of the offer, the offer is
general. For example, announcement of the reward
to the person, solving some particular problem.
 Communication Of Offer
 An offer must be properly communicated. It
could be written , spoken or by conduct.
 Offer can be made to an individual (between
you and me) or
 group of people (only to members or only to
law students) or
 to world at large (find a dog for reward).
 Advertisements of goods for sale are
normally interpreted as invitations to treat.
However, advertisements may be construed
as offers if they are unilateral, ie, open to the
entire world to accept (eg, offers for
rewards). (general offer).
Case law (general)

 Carlill v. Carbolic Smoke Ball Co.

The classic example is the case of Carlill v. Carbolic Smoke Ball Co
(above). The defendants, who were the manufacturers of the carbolic
smoke ball, issued an advertisement in which they offered to pay £100
to any person who caught influenza after having used one of their
smoke balls in the specified manner, and they deposited £1000 in the
bank to show their good faith. The claimant caught influenza after
using the smoke ball in the specified manner. She sued for the £100
Held that the advertisement was not an invitation to treat but was an offer
to the whole world and that a contract was made with those persons
who performed the condition ‘on the faith of the advertisement’. The
claimant was therefore entitled to recover £100.
Offers v. Invitations to Treat

 Mechanism general public is invited to make an offer

 Followings are Invitation to treat and not an Offer,
1. Display of Goods (intention to sale / not offer)
 The display of goods is as an invitation to treat rather than as an
offer.
 Fisher v Bell [1961] 1 QB 394.
 The case established that, where goods are displayed in a shop
together with a price label, such display is treated as an
invitation to treat by the seller, and not an offer. The offer is
instead made when the customer presents the item to the
cashier together with payment. Acceptance occurs at the point
the cashier takes payment. 
 In contrast, where the display is made by a
machine, the display will probably be an offer
(Thornton v Shoe Lane Parking [1971] 2 QB
163).
 The machine represents the offer, the acceptance is
inserting the money
2.Advertisements.
3.Tenders.
4. Auctions
Partridge v. Crittenden (Advertisement)

The appellant advertised Bramblefinch hens for sale at rs 25.

He was charged with the offence of ‘offering for sale’ wild live
birds contrary to the Protection of Birds Act 1954. It was held
that the advertisement was an invitation to treat and not an
offer and so the appellant was acquitted. Lord Parker CJ stated
that there was ‘business sense’ in treating such advertisements
as invitations to treat because if they were treated as offers the
advertiser might find himself contractually obliged to sell goods
than he in fact owned.
Auction Sales
Harris v. Nickerman

 Facts: The defendant advertised an auction

being held of various items including office furniture.
The plaintiff traveled from another area to buy the
furniture but at the last minute the defendant decided
not auction office furniture. The plaintiff filed a suit for
damages, claiming loss of time and fare.
 Held: The court held that a mere auction to sell
certain thing does not constitute an offer which can be
accepted, thus the plaintiff was not awarded any
damages.
Tenders

 Spencer v. Hardings
 Facts: The defendant’s circular advertised
sale of certain goods by tender. The plaintiff
made the highest bid.
 Held: The circular was only an invitation to
treat and defendant was free to accept or
reject the offer.
 Mere statement of intention to sell, not an
offer.
Termination of an Offer

(1) Revocation ( by offeror ) death.

(2) Lapse
(3) Rejection By Offeree
 Lapse
 Ramsgate Victoria Hotel v. Mortifiers
 Facts: On 8th June the defendant offered to sell 50
shares to plaintiff On 23rd November the plaintiff accepted the
offer however directors had already allotted the shares to
another person,.
 Held: There was no acceptance of offer as it lapsed after
expiry of reasonable time.
(4) Implied rejection , counter offer

 Hyde v. Wrengh
Facts: The defendant offer to sell his farm for £1000. The
plaintiff made an offer of £950 in response which the defendant
refused. The plaintiff then agreed to £1000 and attempted so
enforce the contract of sale.
Held: There was no longer an offer which the plaintiff could
accept since he had with his counter offer destroyed the
original offer of £1000.
Legal Rules as to offer

 Offer must be capable of being accepted and giving rise to legal

relationship.
 Terms of offer: Terms of offer must not be ambiguous,
uncertain and vague.
For example, I will pay you Rs.1,000 more if there is rain on that
day.
 Offer is different from: (i) Declaration of intention, tenders etc.
(ii) Invitation to make offers, quotations, circular etc.
 Offer must be communicated.
 Offer must be made with a view to obtaining the assent, and not
merely with a view to disclosing the intention of making an offer.
 Offer should not contain a term, the non-
compliance which would amount to
acceptance.
For example, I plan to sell you my car for
Rs.500,000. If I don't receive a reply I
presume that you have accepted the offer. In
this case the offer is not accepted if person
don't send reply.
 Offer accepted becomes promise.