Offer / Proposal

Offer / Proposal

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 to such act or abstinence, he is said to make a proposal.

The word Proposal is synonymous of the English law term Offer.

The person making the offer is called ‘offeror’ and to whom the offer is made is called ‘offeree’.

General Rules of Offer:

  1. An offer may be express or implied.
  2. An offer must be specific.
  3. An offer may be conditional.
  4. An offer must communicate to the offeree.
  5. An offer must have an intention to create a promise.
  6. An offer must have an objective to create legal rights and obligations.
  7. Ignorance of an offer may not create any legal right.
  8. A mire expression of will is not an offer.
  9. A primary negotiation is not an offer
  10. Invitation of offer is not an offer.
  11. An offer may be revoked before acceptance.
  12. An offer may stands for a reasonable time.
  13. Counter offer destroys the original offer and make a new offer.
  14. An open offer stands for all times.
  15. An advertisement of goods is not an offer generally, but any additional statement to an advertisement sometimes treated as an offer.

Revocation of Offer:

  1. Every proposal may be revoked at any time before the communication of its acceptance is completed.
  2. After expiration of the specific periods stands for its acceptance.
  3. In absence of the specific periods, after expiration of the reasonable periods stands for its acceptance.
  4. In case of failure to fulfill the terms and conditions of the offer.
  5. In case of death or legal disability of the offeror before the communication of its acceptance is completed.
  6. If the offer is denied.
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