PROPOSAL/OFFER

BY KIRAN KHATRI

Person who makes the offer. he is said to make a proposal. With a view to obtaining assent of that other to such an act or abstinence.MEANING OF OFFER SECTION 2(a) When person signifies to another his willingness . . To do or to abstain from doing anything. An offer is synonymous with proposal.Offeror/ Promisor Person to whom offer is madeOfferree/Promisee.

3)CROSS OFFER: When two parties exchange identical offer. 2)SPECIFIC OFFER: It is made to definite person. Carbolic Smoke Ball. 5)STANDING/OPEN/CONTINUING OFFER: Allowed to remain open over a period of time. 4)COUNTER OFFER: Qualified acceptance of offer subject to modifications and variations. 6)EXPRESS/IMPLIED OFFER Case law: Wilkie v.KINDS OF OFFER 1) GENERAL OFFER: It is made to public at large. Celebrated case of :Carlill vs. . London Passenger Transport Board.

RULES TO OFFER THERE MUST BE TWO PERSONS OFFER MUST BE COMMUNICATED. Case laws: Lalman v Gauri Dutta(1913) and Fitch v Snedaker(1868). OFFER MUST BE CAPABLE OF CREATING LEGAL RELATIONS Case laws: Gould v Gould (1970) and Balfour v Balfour(1919) THE TERMS OF THE OFFER MUST BE DEFINITE AND CERTAIN Case law Scammel v. Ouston (1941) .

he promised her £30 a month until he came back to Ceylon.  Mrs. As Mr. In July she got a decree and in December she obtained an order for alimony. because a jungle climate was not conducive to her health.  In 1915. they both came back to England during Mr. and Mr. Balfour was under an obligation to support his wife. Balfour's leave. Balfour's boat was about to set sail. Balfour was a civil engineer. . Balfour got rheumatic arthritis. In March 1918. Sargeant J held that Mr. Her doctor advised her to stay. Balfour was living with him. But Mrs. Balfour sued him to keep up with the monthly £30 payments.Balfour v Balfour(1919)  Mr.  At first instance. and worked for the Government as the Director of Irrigation in Ceylon (now Sri Lanka). Balfour wrote saying it was better that they remain apart. They drifted apart. Mrs.

Haeckel Ceylon Jungle River .

AN OFFER MAY BE DISTINGUISHED FROM: . OFFER SHOULD NOT BE SUCH THAT THE NONCOMPLIANCE OF WHICH MAY BE ASSUMED TO AMOUNT TO ACCEPTANCE.RULES TO OFFER OFFER MUST BE MADE WITH A VIEW TO OBTAINING ASSENT.

Facey informed Harvey that the lowest price was $ 900 without stating that he was willing to sell at that price. Harvey telegraphed that he would buy at that price.A STATEMENT OF PRICE IS NOT AN OFFER • Harvey Vs Facey Harvey telephoned to Facey asking the latter to inform him whether he would sell Bumper Hall Pen and if so. Facey gave no reply to the telegram. . It was held that there was no contract because there was no offer from Facey to Harvey. at what price.

or D who are making offers which A may or may not accept. B sends a tender expressing his willingness to pay Rs 10. . Similarly C and D also convey their offers to pay Rs 11.Invitation of Tenders: No offer • Case: Spencers v Harding A invited tenders for the sale of his house but did not undertake to sell to the highest bidder. C.000 respectively. It was held that A made no offer or proposal. He only invited offers and it is B.000.000 and Rs 12.

Railway Co.N.OFFER vis a vis INVITATION TO OFFER • TENDER : It is an offer as it is in response to an invitation to offer. W executed the orders as placed from time to time but later refused to execute a particular order. invited tenders for the supply of stores. W made a tender and the terms of the tender were as follows: “To supply the company for 12 months with such quantities of specified articles as the company may order from time to time. The company accepted the tender and placed the orders. • Held: W was bound to supply goods within the terms of the tender . Case law: Great Northern Railway v Witham (1873) • The G.

Case law: Fisher v Bell (1961) . Nickerson • DISPLAY IN SHOWCASE: The display in shop window is not an offer but an invitation to offer. Case law: Harris v.• AUCTION SALE: It is not considered as offer but only as an invitation to offer.

Case law: Pharmaceutical society of Great Britain v. .RULES TO OFFER . but rather is an invitation to treat. The Court held that the display of a product in a store with a price attached is not sufficient to be considered an offer. Boots Cash Chemist(1953).

Digilandmall.OFFER vis a vis INVITATION TO OFFER • SELF SERVICE STORES: In self service stores the customer offers and the store accepts . So it is an invitation to offer. The content of communication on internet decides whether it is an invitation to offer or offer. and acceptance from the seller. Case laws: Chwee Kin Keong v. invariably the offer would come from the customer. but a self service store is justified in refusing to sell goods selected by the customer. along with payment through a credit card.com(2004). • INTERNET: In case of online shopping . Once the payment is made the servers are made to generate the auto acceptance of the offer. .

OFFER vis a vis INVITATION TO OFFER .

.SO WHAT IS THE DIFFERENCE BETWEEN OFFER AND INVITATION TO OFFER?? OFFER DEFINITE CAPABLE OF CREATING INTENTION INTO CONTRACT INVITATION TO OFFER ONLY CIRCULATION OF OFFER ATTEMPTS TO INDUCE OFFERS .

Case laws: Notice in the hotel room: Olley v Marlborough Court Ltd. (1949) See conditions at the back: Parker v S.(1877) Conditions in small print: Estrange Graucob Ltd.E.SPECIAL TERMS IN A CONTRACT Where there are any special terms in the contract it should be duly brought into the notice of the offeree. Rail Co.(1934) .

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