CLASSIFICATION OF OFFER

Classification of offer


An offer can be classified as general offer, special/specific offer, cross offer, counter offer, standing/open/ continuing offer.


(a) General offer:

  It is an offer made to public at large and hence anyone can accept and do the desired act (Carlill v. Carbolic Smoke Ball Co.). In terms of Section 8 of the Act, anyone performing the conditions of the offer can be considered to have accepted the offer. Until the general offer is retracted or withdrawn, it can be accepted by anyone at any time as it is a continuing offer. 

Case Law: Carlill Vs. Carbolic Smoke Ball Co. (1893)
   Facts: In this famous case Carbolic smoke Ball Co. advertised in several newspapers that a reward of £100 would be given to any person who contracted influenza after using the smoke balls produced by the Carbolic Smoke Company according to printed directions. One lady, Mrs. Carlill, used the smoke balls as per the directions of company and even then suuered from influenza. Held, she could recover the amount as by using the smoke balls she had accepted the offer. 

Case Law: Lalman Shukla v. Gauri Dutt

   Facts: G (Gauridutt) sent his servant L (Lalman) to trace his missing nephew. He then announced that anybody who traced his nephew would be entitled to a certain reward. L, traced the boy in ignorance of this announcement. Subsequently when he came to know of the reward, he claimed it. Held, he was not entitled to the reward, as he did not know the offer.

(b) Special/specific offer:

    When the offer is made to a specific or an ascertained person, it is known as a specific offer. Specific offer can be accepted only by that specified person to whom the offer has been made. [Boulton v. Jones]

Example: ‘A’ offers to sell his car to‘B’ at a certain cost. This is a specific offer.

(c) Cross offer: 

When two parties exchange identical offers in ignorance at the time of each other’s offer, the offers are called cross offers. There is no binding contract in such a case because offer made by a person cannot be construed as acceptance of the another’s offer.

Example: If A makes a proposal to B to sell his car for ` 2 lacs and B, without knowing the proposal of A, makes an offer to purchase the same car at ` 2 lacs from A, it is not an acceptance, as B was not aware of proposal made by A. It is only cross proposal (cross offer). And when two persons make offer to each other, it can not be treated as mutual acceptance. There is no binding contract in such a case.

(d) Counter offer:

When the offeree offers to qualified acceptance of the offer subject to 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. It is also called as Conditional Acceptance.

Example: ‘A’ offers to sell his plot to ‘B’ for `10 lakhs. ’B’ agrees to buy it for ` 8 lakhs. It amounts to counter offer. It may result in the termination of the offer of ’A’. Any if later on ‘B’ agrees to buy the plot for ` 10 lakhs, ’A’ may refuse.

(e) Standing or continuing or open offer: 

An offer which is allowed to remain open for acceptance over a period of time is known as standing or continuing or open offer. Tenders that are invited for supply of goods is a kind of standing offer.