Tuesday, 2 August 2011

Define offer or proposal and describe the essential of valid offer or Discuss the various conditions of valid offer and discuss the types or kinds of Proposal

Proposal and offer both are used in the same sense and there is no difference in their meanings. It is defined in the following words :
"When one person signifies to another his willingness to do or to abstain from doing anything with a view to abstaining the ascent of that other such or such act or abstinence he is said to make a proposal."

( i ). The person who makes the proposal is called proposer offerer or promisor.

( ii ). The person to whom offer is made is called offer or promisee.

Note :- There will be no agreement, if the proposal is made without the intention of creating legal rights and obligations.


1. General Proposal :-
When proposal is made with the entire world it is called general proposal. But contract is made only with the person who performs the conditions of the proposal.

2. Specified Proposal :-
It is made to specific person or specific class. It is also accepted by specific person.

3. Express Proposal :-
When the proposal is expressed in words or in writing it is called express proposal.

4. Implied Proposal :-
When the proposal is conveyed by the contract of the offerer, it is called implied proposal.

Following are the important conditions :

1. Legal Relationship :-
It is essential for a valid proposal that it must be made with the intention of creating legal relationship otherwise it will be only invitation. A social invitation may not create legal relationship.

Example :- Mr. Jhon invites Mr. Robbin t dinner and he accepts. It does not create any legal relations.

2. Clear Terms and Conditions :-
Proposal should be certain clear, understandable and simple. It may not create any confusion in the mind of proposee should be precised and definite.

Example :- Mr. Agha offers to sell his house to Miss. Peenu for Rs. 10 lac she agrees. It is a contract and create legal relationship.

3. General and Specific Offer :-
When proposal is opened to the general public it is called general proposal on the other hand when it is made to the specific person, it is called specific offer. In case of general proposal contract is made with person who accepts the offer.

4. Must be Communicated :-
It is also an important rule for the validity of proposal. Without communication acceptance of proposal by the proposee is not possible. How an offer can be accepted unless it has been bought to the knowledge of a person to whom it is made.

5. Assent Must be an Object :-
Proposal without object will not be valid. The object of the proposal must be to get the assent of the other party to whom the offer has been made.

6. Distinction Between Proposal and Invitation :-
Proposal is different than the invitation of tenders. Price list of goods and quotation. These are only invitation of an offer and not the proposal.

7. Communication Method :-
There are three methods of communication proposal can be made orally, in writing or by conduct. Generally proposals are made orally or writing.

8. Acceptable Proposal :-
If the acceptance of the proposal is not possible then it will be not a valid proposal. It is essential that acceptance must be possible.


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