Offer
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. – Section 2(a) Contract Act
Parties
Offeror: Person making an offer
Offeree: Person to whom the offer is made
Essentials of Valid Offer
- It may be express or implied
- It must create legal relations
- It must be definite and clear
- It is different from invitation to offer
- It may be specific or general
- It must be communicate to offeree
- It should not contain negative condition
- It may be subject to any terms and conditions
- It must not contain cross offers
Revocation or Termination of Offer
- Notice of revocation
- Lapse of time
- Failure to fulfill condition
- Revocation of offer by offeree
- Counter offer by offeree
- Death or insanity of the Offeror or offeree
- Subsequent illegality
- Destruction of subject matter
Acceptance
When the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted. A proposal when accepted becomes the promise. – section 2(b) Contract Act
Essentials of Acceptance
- It must be given by the offeree
- It must be absolute and unconditional
- It must be in a prescribed manner
- It must be communicated to the offeror
- It may be express or implied
- It must follow the offer
- It must be given within reasonable time
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