1. Offer and its essentials
Proposal and offer both are used in the same sense and there is no
difference in their meanings. It is defined in the following words
In contract law, an offer is a promisein exchange for performanceby
another party. An offer can be revoked or terminated undercertain
conditions. There are also timeswhen an offer can be negotiated to
create a counter PROPOSAL or OFFER:-
"When one person signifies to another his willingness to do or to
abstain from doing anythingwitha view to abstainingthe ascent of that
other such or such act or abstinence he is said to make a proposal."
Willingness of person to get the willingness of another person is called
offer.
KINDS OF PROPOSAL
1. GeneralProposal:-
When proposalis made with the entire world it is called general proposal. But
contract is made only with the person who performs the conditions of the
proposal.
2. Specified Proposal:-
It is made to specific person or specific class. It is also accepted by specific
person.
3. Express Proposal:-
When the proposalis expressed in words or in writing it is called express
proposal.
4. Implied Proposal:-
When the proposalis conveyed by the contract of the offerer, it is called implied
proposal.
2. ESSENTIAL OF VALID PROPOSAL
Following are the important conditions:
1. Legal Relationship:-
It is essential for a valid proposalthat it must be made with the intention of
creating legal relationship otherwise it will be only invitation. A social
invitation may not create legal relationship.
Example: - Mr. Jhon invites Mr. Robbin t dinner and he accepts. It does not
create any legal relations.
2. Clear Terms and Conditions:-
Proposalshould be certain clear, understandable and simple. It may not create
any confusion in the mind of proposesshould be precised and definite.
Example: - Mr. Agha offers to sell his house to Miss. Peenu for Rs. 10 lac she
agrees. It is a contract and creates legal relationship.
3. Generaland Specific Offer :-
When proposalis opened to the general public it is called general proposalon
the other hand when it is made to the specific person, it is called specific offer.
In case of general proposalcontract is made with personwho accepts the offer.
4. Must be communicated:-
It is also an important rule for the validity of proposal. Without communication
acceptance of proposalby the proposeeis not possible. How an offer can be
accepted unless it has been bought to the knowledge of a personto whom it is
made.
5. Assent must be an Object:-
Proposalwithout object will not be valid. The object of the proposalmust be to
get the assent of the other party to whom the offer has been made.
3. 6. Distinction betweenProposaland Invitation:-
Proposalis different than the invitation of tenders. Price list of goods and
quotation. These are only invitation of an offer and not the proposal.
7. Communication Method:-
There are three methods of communication proposalcan be made orally, in
writing or by conduct. Generally proposals are made orally or writing.
8. Acceptable Proposal:-
If the acceptanceof the proposalis not possiblethen it will be not a valid
proposal. It is essential that acceptancemust be possible.
Other points
Legal
Legal consideration
Certain
Competent
Real
Free Consent
Term and Condition
Specific and general
Possibility of performance
Different from Invitation
4. Termination of offer
There are a number of ways for an offer to be terminated. They are events that
may occurafter an offer has been made which bring it to an end so that it can no
longer be accepted.
An offer is terminated in the following circumstances:
Revocation
Rejection
Lapse of time
Conditional Offer
Operation of law
Death
Acceptance
Illegality
Change in Law
Distraction of subject Mater
Term and condition