DEFINITION OF OFFER/PROPOSAL


Definition of Offer/Proposal:
According to Section 2(a) of the Indian Contract Act, 1872, “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 act or abstinence, he is said to make a proposal”. 

Analysis of the above definition Essentials of a proposal/offer are-

1. The person making the proposal or ouer is called the ‘promisor’ or ‘oueror’: The person to whom the ouer is made is called the ‘oueree’ and the person accepting the ouer is called the ‘promisee’ or ‘acceptor’. 

2. For a valid ouer, the party making it must express his willingness‘to do’ or‘not to do’ something: Mere expression of willingness does not constitute an ouer.

Example: Where ‘A’ tells ‘B’ that he desires to marry by the end of 2017, it does not constitute an ouer of marriage by ‘A’ to ‘B’. Therefore, to constitute a valid ouer expression of willingness must be made to obtain the assent (acceptance) of the other. Thus, if in the above example, ‘A’ further adds, ‘Will you marry me’, it will constitute an ouer.

3. An ouer can be positive as well as negative: Thus “doing” is a positive act and “not doing”, or “abstinence” is a negative act; nonetheless both these acts have the same euect in the eyes of law.

Example: A ouers to sell his car to B for ` 3 lacs is an act of doing. So in this case, A is making an ouer to B. On the other hand, when A ask B after his car meets with an accident with B’s scooter not to go to Court and he will pay the repair charges to B for the damage to B’s scooter; it is an act of not doing or abstinence.

4. The willingness must be expressed with a view to obtain the assent of the other party to whom the ouer is made.

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