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Proposal and Rules regarding valid proposal


Define the term 'proposal'.
Explain with illustration the rule regarding valid proposal .

The whole process of entering into a contract starts with a proposal or an offer made by one party to another. To enter into an agreement such a proposal must be accepted . Agreement is one of the essential element of valid contract. An agreement is made with the help of offer and acceptance so offer is the first and foremost requirement of agreement .
The term offer has been taken from English law it has been define by various persons among them few and important are :-

According to Halsburry, "An offer is an expression by one or a group of person made to another his willingness to be bound to a contract the term & conditions.

However, the firm 'offer' has not been define anywhere in Indian law there is another word 'proposal' which is synonym to offer. Both the word have some meaning.

According to the Indian Contract Act 1872, proposal is defined in section 2 (a) as "when the person will  signified to another person his willingness to do or not to do something (abstain) with a view to obtain the ascent of such person to such an act or abstinence , he is said to make a proposal or an offer".


Thus from the above definition we can say that there are following features of offer :


◾The person making an offer or proposal is known as the 'promisor' or the 'offeror'. And the person who may accept such an offer or proposal will be the 'promisee' or the 'acceptor'.

◾The offeror will have to express his willingness to do or abstain from doing an act only willingness is not enough or simply a desire to do/not do  something will not constitute an offer.

◾The offer must be made with a view to obtain the acceptance of the other party, then only it 
can be said to be an offer.



                                         

Classification of offer 


1) Express offer -  An offer is Express offer if made by spoken or written words.

2) Implied offer -  When an offer is made through the conduct and the actions of the offeror it is an implied contract.

For eg :
A writes a letter to B or tells verbally B that he wars to sell his cay to B for & 80,000,  this is an express offer.  An offer may also be implied from the contract of the offers.

3) Specific offer - 

A specific offer is one which is made to a particular person. It can be accepted by the person to whom it has been made.

For eg :-  Offers to sell his Horse to B for ₹5000/-. Then only B can accept such an
offer because it is specific to him.

4) General offer - 

When offer is made to general public, it is called general offer . It can be accepted by any one satisfying the terms of offer.

An important case of general offer is carlill vs carbolic smoke ball co. (1893)

Carbolic smoke ball co advertised that a reward of ₹5000 would be given to any person who contracted influenza after using the medicine by the co. according to the directions, Mrs carlill , used the medicine according to the directions of the co. but suffered from influenza. She filed a suit to recover the reward of ₹5000. The court held that there was a contract as she had accepted to general offer.

5) Positive offer
6) Negative offer

Essentials of a valid offer

 Some of the few Essentials that make the offer valid.

1]Offer of a must create legal relations.
Offer must intend to create legal obligation. If offer is not made to create legal obligations, it can cannot be valid offer and cannot be enforceable.
For example :- 
A dinner invitation extended by A to B is not a valid offer.

2] Offer must be clear , not vauge.
The terms of offer or proposal must be very clear and definite. If the terms are vauge or unclear, it will not amount to a valid offer.
For example:- 
A offers to sell be worth ₹ 5000/- . This is not a valid offer since what kind of fruit and their specific quantities are not mentioned.

3] Offer must be communicated to the offeree.
A proposal is completed when it's clearly communicated to the offeree. A proposal cannot be accepted without its knowledge
For example:- Lakshman Shukla vs Gauri Dutt

4] Offer may be conditional.
While acceptance cannot be conditional, and offer might be conditional. The offeror can make the offer subject to any terms and conditions he deems necessary. So A can offer to sell goods to B if he makes half the payment in advance. Now B can accept these conditions or make the counteroffer.


 Rules regarding valid acceptance 

1] Acceptance must be absolute and unqualified :-
According to Section 7 (1) of Indian Contract Act - "in order to convert a proposal into a promise the acceptance must be absolute and unqualified". It means acceptance must be given into and must in not be conditional. 
For example:- 
A offers to sell his cycle to B for ₹2000/-. B says he accept if A will sell it for ₹1500/-. This does not amount to offer being accepted ,it will count as counteroffer.

2] Acceptance must be in prescribed manner -According to Section 7(2) of Indian Contract Act - "in order to convert a proposal into a promise, the acceptance must be given in the prescribed manner" if there is no prescribe manner the manner must be recognisable.
So A offers to sell his farm to B for ₹10 lakh. He asks be to communicate his answer via post. B e-mails A accepting his offer. Now A can ask B to send the answer through the prescribed manner but if a fails to do so, it means he has accepted the acceptance of B and promise is made.

3]  Acceptance must be given by the party to whom offer has been made.

4]  Acceptance cannot be given before communication of an offer.





















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