27 February, 2016

Classification of Offer

The words proposal and offer are used interchangeably and it is defined under Section 2 (a), Indian Contract Act, 1872 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 or abstinence, he is said to make a proposal. Thus, for a valid offer, the party making it must express his willingness ‘to do’ or ‘not to do’ something.
The word ‘proposal’ used above is synonymous in English Law with ‘offer’.  
(a) General Offer: - It is an offer made to the public in general and hence anyone can accept and do the desired act. Section 8 of the Indian Contract Act points out that performance of the conditions of a proposal is an acceptance of the proposal.
(b) Special Offer: - When offer is made to a definite person, it is known as specific offer an such offer can be accepted only by that specified person.
(c) Cross Offers: - When two parties exchange identical offers in ignorance at the time of each other's offer, the offers are called Cross offers. There is not biding contract in such a case as one's offer cannot be construed as acceptance by the other.
(d) Counter Offer: - When the offeree offers to qualified acceptance of the offer subject b modifications and variations in the terms of original offer, he is said to have made a counter offer. Counter-offer amounts to rejection of the original offer.
(e) Standing, Open or Continuing offer: - An offer is allowed to remain open for acceptance over a period of time is known as a standing, open or continuing offer. Tender for supply goods of  is a kind of standing offer time the offer would be considered as accepted.

Courtesy:- Legal Point Foundation

No comments: