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offer

English · Contract and commercial

Meaning. A proposal: one person signifying willingness to do or abstain from something, to obtain the other's assent.

Under the Indian Contract Act, a person makes a proposal (offer) when he signifies to another his willingness to do or to abstain from doing anything, with a view to obtaining the assent of that other to it. When the proposal is accepted, it becomes a promise.

An offer may be express or implied, and specific (to one person) or general (to the world at large, accepted by performing the conditions). It must be communicated, so a person who acts without knowing of an offer cannot claim under it. An offer must be distinguished from an invitation to offer, such as a display of goods, a price list or an advertisement for tenders, which only invites others to make offers.

Example

The company's advertisement promising Rs 100 to anyone who caught influenza after using its smoke ball was a general offer, accepted by performance.

In Indian law

  • Section 2(a), Indian Contract Act, 1872
  • Carlill v. Carbolic Smoke Ball Co. (Court of Appeal, England, 1893)
  • Lalman Shukla v. Gauri Dutt (Allahabad High Court, 1913): offer must be known to be accepted

See also

acceptance · invitation to offer · contract · consensus ad idem

Read more in the study notes

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