BUSINESS LAW

CONTRACT AND ITS KINDS

Offer

Offer
Section 2(a) defines a proposal 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.

It means an offer shows the willingness of an offeror to do or not to do

some act to obtain the consent of the other person regarding that act.

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Offer

Essentials of Valid Offer

1. Express or Implied
2. Legal relations
3. Definite and clear
4. Invitation to offer
5. Specific or general
6. Communication of Offer
7. Negative condition
8. Conditions of offer
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Offer

1. Express or Implied
An offer must be express or implied. An offer which is made by words
spoken or written is called an express offer. An offer which appears
from the action is called an implied offer.

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Offer

2. Legal Relation
An offer must be made in order to create legal relations with the other
party. If an offer does not create legal relations between the parties, it
is not a valid offer. In business transactions, it is presumed that the
parties intend to create legal relations.

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Offer

3. Definite and Clear

An offer must be definite and clear. If the terms of an offer are not
clear, it is not a valid offer. If such an offer is accepted, it does not
create a contract.

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Offer

4. Invitation to offer
An invitation to an offer is not an offer. In an invitation to offer, the
person does not make an offer but only invites the other party to make
an offer.

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Offer

5. Specific or General
When an offer is made to a specific person or particular group of
persons, it is called specific offer.
A general offer may be accepted by any person.

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Offer

5. Communication of offer
An offer is valid only when it is communicated to the offeree.

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Offer

6. Negative condition
An offer must not contain a negative condition, The offeror cant include
a condition that if the offer is not accepted upto certain date, the offer
will be treated as accepted.

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Offer

8. Condition of offer
An offeror may include any condition in his offer. There is no contract
unless all conditions of the offer are accepted.

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