Types of Offers in Law

The Indian Contract Act, 1872 recognizes several different types of offers in law, each with its own characteristics:

1- Express Offer:

This is a clear and direct communication of a proposal, either written or spoken. The offeror explicitly states their willingness to do or abstain from doing something in exchange for the offeree’s acceptance.

Example: I offer to sell you my car for $5,000.

2- Implied Offer:

Here, the offer is communicated through conduct rather than words. The offeree can infer the offer based on the actions of the offeror. For instance, displaying items on a store shelf with a price tag can be seen as an implied offer to sell those items at the marked price.

Example: If a person takes groceries to the cashier in a store, it implies an offer to purchase those items.

3- Specific Offer:

As explained earlier, this offer is directed at a particular person or a well-defined group of people. Only the designated recipient(s) can accept it and form a a contract.

Example: “I offer to sell my bicycle to you, John, for $100.”

4- General Offer:

This offer is addressed to the public at large or a large group of people. Anyone who meets the conditions of the offer can accept it, forming a contract.

Example: An advertisement offering a reward for the return of a lost pet.

5- Conditional Offer:

This offer depends on the fulfillment of a specific condition before it becomes binding. The offeror outlines a specific event or action that must happen for the offer to be valid.

Example: “I will sell you my car if I get a new job.”

6- Unconditional Offer:

This offer doesn’t rely on any conditions. It’s a straightforward proposal that becomes a binding contract upon acceptance.

7- Standing Offer:

This offer remains open for a certain period or until revoked by the offeror. It’s essentially an invitation for someone to come forward and accept the terms within the specified timeframe.

Example: A company may have a standing offer to buy raw materials from suppliers at a specified rate for the next six months.

8- Temporary Offer:

This offer has a limited validity period. If not accepted within that time, it automatically expires.

9- Counter Offer:

This is a new proposal made by the offeree in response to the original offer. It basically rejects the initial terms and suggests different conditions.

Example: If someone offers to sell their car for $5,000 and the buyer responds with an offer to buy it for $4,500, the second offer is a counter offer.

10- Cross offer:

When two offers of same terms and conditions cross each other at same time, it is called cross offer.

Example: If A offers to sell his bike to B for $200 at the same time B offers to buy A’s bike for $200, their offers cross each other.

These are the main types of offers in law recognized under the Indian Contract Act. Understanding the specific type of offer helps determine its validity and how it can be accepted to form a contract.

Books Recommended:      Check it Out

1. Beatsen (ed.)-Anson’s Law of Contract : (27th Ed. 1998)

2. Anson-Law of Contract (1998), Universal, Delhi

3. Pollock and Mulla-Indian Contract Act

4. Avtar Singh-Law of Contract, Eastern Book Co.(Lucknow)

5. S.K.Kapoor- Samvidha Vidhi (Hindi)