Offer

Offer or Proposal: when one person signifies to another his

willingness to do or to abstain from doing any thing, with a view to
obtaining the assent of that other to such act or abstinence, he is
said to make a proposal.

The person making the offer is called the offeror or promisor. The
person accepting the offer is called a promisee or acceptor.

The words offer and proposal are used interchangeably in different

legal systems.

For instance, A says to B that he will sell his cycle to him for Afg.
2000. this is an offer.
 Essentials of a valid Offer
The following are the legal rules or essentials of a valid
offer.

1: It may be express or implied: An offer may be

made by words or by conduct. An offer which is made by
words spoken or written is called an express offer. The
implied offer appears from the actions, conduct of
parties, course of dealings or circumstances of the case.

For example, M says to N that he will sell his motorcycle to

him for Afg. 20000. It is an express offer. In contrast, a
railway coolie carries the luggage of B without asking
him to do so. B allows him to do so. It is an implied offer.
2: It must create legal relations: The offer must be
made to create legal relations otherwise there will be no
agreement. If an offer does not give rise to legal
obligations between the parties, it is not a valid offer.

For example, A invites B to dinner and B accepts the

invitition. It does not create legal relations, so there is no
agreement. In contrast, in Simpkins vs. Pays three
friends agreed to enter a newspaper competition and
share any winnings. It was held that they intended to
create legal relations so there was a contract.
3: It must be definite and clear: An offer
must be definite and clear. If it was not so, it
cannot be called a valid offer. If such offer is
accepted, it cannot create a binding contract. An
agreement to agree in future is not a contract
because the terms of agreement are not clear.

For example, A has two computers. He offers B to

sell one computer for Afg. 30000. It is not a valid
offer because it is not clear which computer A
wants to sell.
4: It is different from invitation to offer: An offer is different from an invitation to
offer. In an invitation to offer, the person making the invitation does not make an offer
but only invites the other party to make an offer. His object is to inform that he is
willing to deal with anybody who is willing to deal with him. Fro there to be proper
offer, the terms need to be worded in a way that are definitive and require only the
assent of the other party for the formation of an agreement.

Display in shop windows are not offers but invitations to treat. In Pharmaceutical Society
of GB vs. Boots Chemists the court held that display of goods at a shop, even a self
service shop does not constitute an offer on behalf of the owner of the shop to sell
the goods and constitutes a mere invitation to treat.

Likewise, in Haris vs. Nickerson, a person advertised to sell his furniture at Bury on
specified day. A person came from London to attend the auction but all furniture was
withdrawn from sale. The person who had come to attend the auction sued the one
who advertised. Held that the plaintiff could not recover the expenses because the
advertisement was an invitation to offer. Thus, catalogues, display of goods,
announcement to hold auction, free distribution of articles ,etc. are not offers but
invitations to offers.
5: It may be specific or general: When an offer is made to a specific person or
group of persons, it is called specific offer. Such an offer can be accepted only by the
person or persons to whom it is made. A general offer is one which is made to public
in general and it may be accepted by any person who fulfils the conditions mentioned
in it.

For example, M makes an offer to N to sell his car for Afg. 90000, it is a specific offer. In
this case only N can accept it. In contrast, if A announces in a newspaper a reward of
Afg. 3000 to any one who will return his lost radio. It is a general offer.

General Offers or Mere Puffs: There is difference between general offers and mere
puffs. Thus, street shop advertisements are almost all mere puffs and not general
offers.

In Carlill vs. Carbolic Smoke Factory, the offer to pay 100 pounds to anyone who became
sick after using the smoke ball was held to be not a mere puff since the defendants
by adding the statement of depositing 1000 pounds in an account to sho their
sincerity had taken the statement away from being a mere puff and had made it into
serious contractual offer.
6: It must be communicated to the Offeree: An
offer is effective only when it is communicated to the
offeree. If an offer is not communicated to the offeree, it
cannot be accepted.

Thus, in Lalman vs. Gauri Datt, a persons nephew was

missing from home. He sent his servant, Lalman, in
search of the boy. When the servant left, he announced
a reward of Rs. 501 to any one who gives information
about the boy. The servant before announcement found
the boy and informed. Later on, he claimed reward. He
failed on the ground that he could not accept the offer,
unless he had the knowledge of it.
7: It should not contain negative condition: An
offeror cannot say that if acceptance is not
communicated up to a certain date, the offer would be
presumed to have been accepted. If the offeree does not
replay, there is not contract because no obligation to
replay can be imposed on him on the grounds of justice.

For example, A wrote to B to sell his book adding that if he

did not replay within 5 days, the offer would be
considered as accepted. There is no contract.
8: It may be subject to conditions: An offeror may
include any condition in his offer. There is no contract,
unless all the conditions of the offer are accepted. If the
offeror asks for sending the acceptance by telegram and
the offeree sends the acceptance by letter, the offeror
may reject such acceptance.

For example, A asks B to send the replay of his offer by

telegram but B sends replay by letter. A may reject such
acceptance.
9: It must not contain cross offers: When
two parties make similar offers to each other, in
ignorance of each others offer, such offers are
called cross-offers. The acceptance of cross-
offers does not result in complete agreement.

For example, A wrote to B to sell him 1 ton of iron

for Afg. 1 lakh. On the same day B wrote to A to
buy 1 ton of iron for Afg. 1 lakh. There in no
contract.