Offer is also known as proposal. What is an 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 the act or abstinence, he is said to make a proposal.”
There are two Types of Offer n
- Bilateral offer: Bilateral offer is made to a specific person or group of persons.
- Unilateral offer: Unilateral offer is not made to any specific person rather it is made to the world at large.
Case in unilateral offer: Carlill v. The Carbolic Smoke Ball Company Ltd.
nFacts: Challenge that the medicine will cure influenza- if not ê1000 compensation-
they deposited ê1000 in a bank account.
This case also distinguished offer from ITT,
and also talks about consideration by conduct of the plaintiff.
they deposited ê1000 in a bank account.
This case also distinguished offer from ITT,
and also talks about consideration by conduct of the plaintiff.
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 a promise.”
[Section 2 (b) of the Contract Act]
Acceptance must be absolute and unqualified
“In order to convert a proposal into a promise the acceptance must be absolute and unqualified.”
[Section 7(a)]
Case: Hyde v. Wrench
Facts: The defendant on 6 June June offered to sell his farm to the plaintiff for £1000 and on 8 June the plaintiff replied that he was willing to buy the farm for £950.
The defendant refused to sell the farm for £950.
Then on 29 June the plaintiff was willing to buy the farm for £1000.
Held: No contract was made between them because the plaintiff made a counter-offer.
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