Offer

OFFER
WHAT IS OFFER?
• According to Section 2(a) of Indian Contract Act,1872 offer is

• “When one person signify to another his willingness to do or to
abstain from doing anything, with a view to obtaining the assent of
the other to such act or abstinence, he is said to make a proposal”.
HOW PROPOSAL IS COMMUNICATED?
• According to Section 3 of Indian Contract Act “The communication of proposals,

are deemed to be made by an act or omission of the party proposing, by which he
intends to communicate such proposal, which has the effect of communicating
it”.
• Proposal can be done in 2 ways as follows: -
1. Expressive
2. Implied
EXPRESS AND IMPLIED OFFER
EXPRESS IMPLIED
• Acc. To Section 9 of Indian Contract • Acc. To Section 9 of Indian Contract
Act,1872 express offers are those offers Act,1872 implied offers are those offers
which are made in words (written or verbal). which are not made by words.
• For Ex. A tells B to sell his home for
Rs.1,00,00,000 then this offer • For Ex. A bid made at an auction or A bus on
a particular route.
WHEN COMMUNICATION OF OFFER IS
COMPLETED?
• According to Section 4 of Indian Contract Act,1872 “The

communication of proposal is complete when it comes to the
knowledge of the person to whom it is made
CASE ON COMPLETION OF COMMUNICATION
OF PROPOSAL
• Defendant sends an offer to plaintiff offering his bike at a reasonable

cost of Rs.50,000 by post and the letter reaches plaintiff after one day
and received by the wife of plaintiff but she did not convey this
information to her husband(plaintiff) then the communication of offer
is said to be not completed as it does not fulfil the condition
mentioned in Sec 4 of Indian Contract Act,1872
TYPES OF OFFER
• Cross offer
• Specific offer
• General offer
• Standing/open/continuing offer
CROSS OFFER
• When the offers made by two persons or parties to each other

containing similar terms and conditions of bargain at the same time
in post. Then this kind of offer is known as cross offer.
• But this offer doesn’t account to acceptance one of person or party is
required to accept the proposal.
CASE ON CROSS OFFER
• In Tinn v. Hoffmann case, A wrote to B indicating his

willingness to sell 800 tons if iron at 69 per sh. Per ton. On
the same day, B also wrote to A offering same conditions.
The two letters crossed each other in post. This kind of offer
is said to be cross offer as there is no acceptance regarding
the offer by any party.
SPECIFIC OFFER
• When offer is made to a specific or an ascertained person then this

kind of offers are known as specific offer.
• For Ex. A tells B that he wants to sell his wrist watch for Rs.8000
then this offer is said to be a specific offer.
GENERAL OFFER
• When the proposal is made to public at large by any means then this
kind of offer is said to be general offer
• For Ex. An offer made in newspaper or advertisement or in any
speech.
CASE ON GENERAL OFFER
• In Carlill v. Carbolic Smoke Ball Co. The defendant offered that by

using their product in prescribed manner can be a preventive remedy
against influenza and if someone is contacted with influenza by using
their product that person will be rewarded with £100. and plaintiff got
influenza as she accepted the offer by performing the prescribed
manner in which it was guided therefore she was entitled to claim the
reward
STANDING OFFER
• An offer which is allowed to remain open for accepting over a period

of time is known as a standing offer
• For Ex. A tender or an application form for recruitment of jobs.
REVOCATION OF OFFER
• Acc to Section 5 of Indian Contract Act “A proposal may be revoked at

any time, before the communication of its acceptance is complete as
against the proposer, but not afterwards”.
• For Ex. A tells B to sell his car to him but next day A withdraws the offer
that he don’t want to sell his car to B, now valid revocation will be
considered if this withdrawal is made before the acceptance of offer by B
CASE ON REVOCATION OF OFFER
• In Managing Committee, S.G.A. High School v. State of Bihar and others

• Dr. Parmanand, the secretary of the managing committee of a school sent his letter of resignation
on 9.7.1980 requesting the committee to accept the same. He sent another letter dated 9.8.1980
withdrawing his resignation. On 11.8.1980 managing committee met they ignored the withdrawal
letter of resignation and decided to accepted the resignation letter.
• So in above case the letter of withdrawing cannot be ignored because it was posted before the
acceptance, hence the Managing committee is required to withdraw its decision of resignation
which was invalid
HOW REVOCATION OF OFFER IS
COMMUNICATED?
• Acc. To Section 6 of Indian Contract Act,1872 “ A proposal is revoked-

1. By the communication of notice of revocation by the proposer to the other party;
2. By the lapse of the time described in such proposal for its acceptance, or, if no time is
so prescribed , by the lapse of a reasonable time ,without communication of the
acceptance;
3. By the failure of the acceptor to fulfil a condition precedent to acceptance; or
4. By the death of insanity of the proposer, if the fact of his death or insanity comes to the
knowledge of the acceptor before acceptance”.
BY NOTICE OF REVOCATION
• In India the notice of revocation has to be communicated by the

proposer and not by anybody else to the other party.
CASE ON REVOCATION OF OFFER BY NOTICE
• Dickinson v. Dodds In this case Dodds make an offer on 10th June to sell his
house for £800 and mentioned offer is opened till 12th June 9:00 AM. On 11th
June Dodds sold the said property to somebody else. Dodds did not inform this
to the Dickinson and Dickinson accepted the offer before 9:00AM and sued
Dodds.
• In this case the offer was revoked on 11th June which amounts to the implied
revocation of the offer.
BY LAPSE OF TIME
• A proposal is revoked by the lapse of time prescribed in such

proposal for its acceptance, or, if no time is so prescribed by the lapse
of a reasonable time, without communication of the acceptance
REVOCATION OF OFFER BY LAPSE OF TIME
• A v. B A mentions an offer to sell his property to B is open until a

particular time, and if B don’t respond to A with acceptance within
stipulated time or in reasonable time then this offer is said to revoked
and now B cannot accept the offer.
BY FAILURE TO FULFIL A CONDITION
PRECEDENT
• When the offer is subjected to some condition precedent, such a

condition has got to be fulfilled by the acceptor before making the
acceptance. If the acceptor fails to fulfill the condition precedent to
acceptance, the offer stands revoked
REVOCATION OF OFFER BY FAILURE TO
FULFIL A CONDITION PRECEDENT
• In State of M.P. v. Goberdhan Dass, tenders for the sale of certain of certain
goods were invited subject to the condition that 25% amount was to be was
paid when the tender was accepted. A’s tender was the highest and the same was
accepted, but he failed to fulfill his condition. Then there is no rise of contract
between them and the offer is said to be revoked because a failed to fulfill the
condition preceded in offer
BY DEATH OR INSANITY OF THE OFFER
• In India an offer is revoked by the death or insanity of the proposer, if

the fact of his death or insanity comes to the knowledge of the
acceptor before acceptance.
• In other words the offer is said to stand revoked if the acceptor comes
to know about the insanity or death of the proposer before his
acceptance.
DIFFERENCE BETWEEN OFFER AND
INVITATION TO OFFER
OFFER INVITATION TO OFFER

• When one gives statement or • When one gives statement or
information with a view to obtain information with a view to inviting
assent of other party. other to make offers on that basis.
• For Ex. A tells B to sell his car of • For Ex. A catalogue of book or any
Rs.5,00,000 then this is an offer other product is an invitation to offer
SUBMITTED BY: - NAMAN JAIN
ENROLLMENT NO. 01720603818
SUBMITTED TO: - MS. AYUSHI SARKAR
DESIGNATION:- ASSOCIATE PROFESSOR
TRINITY SCHOOL OF LAW AND LEGAL STUDIES
TRINITY INSTITUTE OF PROFESSIONAL
STUDIES(TIPS)
DWARKA SEC-9

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OFFER

• According to Section 2(a) of Indian Contract Act,1872 offer is

• According to Section 3 of Indian Contract Act “The communication of proposals,

• According to Section 4 of Indian Contract Act,1872 “The

• Defendant sends an offer to plaintiff offering his bike at a reasonable

• When the offers made by two persons or parties to each other

• In Tinn v. Hoffmann case, A wrote to B indicating his

• When offer is made to a specific or an ascertained person then this

• In Carlill v. Carbolic Smoke Ball Co. The defendant offered that by

• An offer which is allowed to remain open for accepting over a period

• Acc to Section 5 of Indian Contract Act “A proposal may be revoked at

• In Managing Committee, S.G.A. High School v. State of Bihar and others

• Acc. To Section 6 of Indian Contract Act,1872 “ A proposal is revoked-

• In India the notice of revocation has to be communicated by the

• A proposal is revoked by the lapse of time prescribed in such

• A v. B A mentions an offer to sell his property to B is open until a

• When the offer is subjected to some condition precedent, such a

• In India an offer is revoked by the death or insanity of the proposer, if

OFFER INVITATION TO OFFER

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