LAW OF OFFER

ESSENTIALS OF A VALID OFFER :
By Chartered Accountant

5. It May Be Specific Or General :

When an offer is made to a specific person or group of persons, it is called specific offer. Such an offer can be accepted only by the person or persons to whom it is made. A general offer is one which is made to public in general and it may be accepted by any person who fulfills the conditions mentioned in it.

EXAMPLES :

a. M makes an offer to N to sell his bicycle for Rs. 800, it is a specific offer. In this case only N can accept it.

b. A announces in a newspaper a reward of Rs. 1,000 for any one who will return his lost radio. It is a general offer.

c. The CSB Co. advertised to pay 100 pounds to any person who contract flue, after having used their medicine, according to the directions. Mrs. Carlill, used the medicine, but suffered from flue. She sued for the reward. The company was held liable. (Carlill vs Carbolic Smoke Balls Co.)

6. It Must Be Communicated To The Offeree :

An offer is effective only when it is communicated to the offeree. If an offer is not communicated to offeree, it cannot be accepted. An acceptance of offer, in ignorance of it is not acceptance and does not create legal obligations. Thus, an offer which is not communicated is not a valid offer.

EXAMPLES :

G's nephew was missing from home. He sent his servant, When the servant left, G announced a reward of Rs. 501 for anyone who gives information about the boy. The servant before the announcement found the boy and informed G. Later, on he claimed reward. He failed on the ground that he could not accept the offer, unless he had the knowledge of it. (Lalman vs. Gauri Datt)

7. It Should Not Contain Negative Condition :

An offeror cannot say that if acceptance is not communicated up to a certain date, the offer would be presumed to have been accepted. If the offeree does not reply, there is no contract because no obligation to reply can be imposed on him on the grounds of justice.

EXAMPLE :

A wrote to B to sell his book adding that if he did not reply within 5 days, the offer would be considered as accepted. There is no contract.

8. It May Be Subject To Any Conditions :

An offeror may include any condition in his offer. There is no contract, unless all the conditions of the offer are accepted. If the offeror asks for sending the acceptance by telegram and the offeree sends the acceptance by letter, the offeror may reject such acceptance. He must give notice to offeree regarding rejection. If he does not inform the offeree about his rejection, he is considered to have accepted the acceptance.

EXAMPLES :

A asks B to send the reply of his offer by telegram but B sends reply by letter. A may reject such acceptance.

9. It Must Not Contain Cross Offers :

When two parties make similar offers to each other, in ignorance of each others offer, such offers are called cross-offers. The acceptance of cross-offers does not result in complete agreement.

EXAMPLE :

A wrote to B to sell him 1 ton of iron for Rs. 1 lac. On the same day B wrote to A to buy 1 ton of iron from Rs. 1 lac. There is no contract.