Section 2(a) of the Indian Contract Act, 1872, says
“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 or offer”
In other words, an offer is a proposal made by one party (the offeror) to another party (the offeree), indicating a willingness to enter into a legally binding agreement under certain terms and conditions. It is an expression of willingness to contract on specific terms, communicated to the offeree with the intention that, if accepted, it will create a binding contract between the parties. An offer typically includes essential details such as price, quantity, quality, and any other important terms necessary for the agreement.
Essentials of valid offer:
1- Intention to Create Legal Relations:
The offeror must intend to create a legally binding agreement, demonstrating a serious – 1- intention to be bound by the terms of the offer upon acceptance.
2- Offer may be express or implied:
The offer may be made either by the word of mouth or in writing. Such an offer is known as an express offer. On the other hand, if the offer is inferred, or indirectly understood either from the conduct of parties or from the circumstances, such offer is known as implied offer.
3- Communication to Offeree:
The offer must be communicated to the person to whom it’s directed (the offeree). The offeree must be aware of the proposal and its terms.
4- Free from Vagueness:
The offer shouldn’t be vague or uncertain. It should clearly convey the act or abstinence expected from the offeree in exchange for something.
5- Capability of Performing:
The offer must propose something that’s legally possible to perform. An offer to sell something illegal or impossible to deliver wouldn’t be valid.
6- Legal Capacity:
Both parties must have the legal capacity to enter into a contract under Indian law. This means they must be of sound mind, legal age, and not under any legal disability that would prevent them from entering into a contract.
These elements collectively ensure that an offer is valid and capable of forming the basis of a legally enforceable contract under the Indian Contract Act, 1872.
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)
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