Definition:
The term ‘offer’ and ‘proposal’ under contract law is often used interchangeably. Section 2(a) of the Indian Contract Act, 1872 defines the term “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“.
Key Points:
- An ‘offer’ once accepted becomes ‘promise’;
- An ‘offer’ must be definite and certain;
- An ‘offer’ must be communicated;
- An ‘offer’ must be made with the intention to create legal obligations;
- An ‘offer’ is complete as against the acceptor when the offeror puts it in a mode of transmission outside the control of the offeror;
- An ‘offer’ lapses, if a counter offer is made as counter offer is itself considered to be a fresh offer
Types:
Offer cane be of two types:
- General Offer
- Specific Offer
CASE INDEX:
General Offers:
- Carlill v. Carbolic Smoke Ball Company [Summary]
- Lalman Shukla v. Gauri Dutt (1913) 11 ALJ 489 [Summary]
Intention to Create Legal Relationship:
- Balfour v. Balfour (1918-19) All ER 860 (CA) [Summary]
- Merritt v Merritt [1970] EWCA Civ 6 [Summary]
Communication of Offer:
- Taylor v. Laird (1856 25 LJ Ex 329) [Summary]
- Powell v Lee (1908) 99 LT 284 [Summary]
- Bhagwandas Goverdhandas Kedia v. M/s. Girdharilal Parshottamdas (1966 AIR 543) [Summary] [Full Text]
Cross Offer:
- Tinn v. Hoffman 1873 29 LT 271 [Summary]
Standing Offer:
- Perclval Ltd. v. London County Council Asylums and Mental Deficiency Committee (1918) 87 L.JKB 677 [Summary]
- Bengal Coal Co. v. Homee Wadia & Co. (1899) ILR 24 Bom 97 [Summary]
- Union Of India v. Maddala Thathiah 1964 SCR (3) 774 [Full Text]
- R v. Demers [2004] 2 S.C.R. 489 [Full Text]
- Great Northern Railway Co. v. Witham [1873] LR 9 CP 16 [Summary]
Invitation to Offer:
- Pharmaceutical Society of Great Britain v Boots Cash Chemists Ltd. [1953] 1 QB 401 [Summary]
- Harvey v. Facey [1893] UKPC 1 [Summary]
- Harris v. Nickerson (1873) LR 8 QB 286 [Summary]
Counter Offer:
- Hyde v. Wrench [1840] EWHC Ch J90 [Summary]
- Jones v. Daniel [1894] 2 Ch. 332 [Summary, p. 23, para 2.39]
- Routledge v. Grant (1828) 6 LJCP 166 [Summary]
Postal Rule:
- Adams v. Lindsell [1818] EWHC KB J59 [Summary] [Full Text]
- The Household Fire and Carriage Accident Insurance Company (Limited) v. Grant (1878–79) LR 4 Ex D 216 [Summary, p.19]
- Henthorn v. Fraser [1892] 2 Ch 27 [Summary, p.20] [Full Text]
- Countess of Dunmore v. Alexander (1830) 9 Sh 19 [Summary]