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Topic 6: OFFER - TYPES OF OFFER

Definition/Meaning of Offer:
Offer or proposal is the starting point in the formation of a contract. Section 2 (a) defines proposal as “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.”

The word proposal is synonymous with the English word “Offer”. The person making the proposal is called the proposer or offeror and the person to whom the proposal is made is called the offeree.
For example: ‘A’ offers to sell his motor cycle to ‘B’ for Rs. 3,000. ‘B’ agrees to pay ‘A’ Rs 3,000 for the motor cycle. Here ‘A’ is called the offeror or promisor and ‘B’ the offeree or promise.

Thus, a proposal is an expression of will or intention. A person making the proposal expresses that he is willing to contract on the terms stated in it provided the other party to whom the proposal is made will likewise express his assent to the same terms.
Section 2 (a) reveals 3 essential elements in an “Offer’:
i) Expression of willingness to do or not to do something
ii) Made to another person (i.e. a person cannot make an offer to himself)
iii) With the object of gaining the consent of the other person to such act or abstinence.
Thus, a casual enquiry, information, invitation to offer, a prospectus, Advertisement, a statement of fact or statement of mere intention lacking the above mentioned three essentials are not offers.





》TYPES OF OFFER

Offers or proposals may be classified on the basis of:
1. How an offer is made?
2. To whom an offer is made?
I. How an offer is made:  An offer may be either express or implied from the conduct of the parties.
1. Express Offer: An express offer is one which may be made by words spoken or written such as letter, telegram fax message, and e-mail or through internet.
For example: ‘A’ offers to sell his pen to ‘B’ fro Rs. 20; it is an express offer.
2. Implied Offer: An implied offer is on which may be gathered from the conduct of the party or the circumstances of the case.
For example: A person goes to a doctor for treatment, here his conduct implies an offer that if the treatment is given, then he will pay the usual charges.





II. To whom an offer is made: An offer may be made to a particular person, a particular group or body of persons, the public at large i.e. the whole world
1. Specific Offer: An offer made to a definite person or body of persons is called a specific offer. A specific offer can usually be accepted only by the person or persons to whom it is made.
For example: ‘A’ promises to give Rs 100 to B if he brings back his missing dog, this is a specific offer and can only be accepted by ‘B’.
2. General Offer: When an offer is offered or addressed to the whole world, it is called a general offer. A general offer can be accepted by any one.
For example: ‘A’ issues a public advertisement to the effect the he would give Rs. 500 to any one who brings back his missing dog, such an advertisement amounts to a general offer and any member of the public can accept the said offer by searching for and bringing back A’s missing dog. 
The leading case on this point is CARLILLV.S CARBOLIC SMOKE BALL CO. (1893)
In this case, the Carbolic smoke ball co. offered by advertisement a reward of £ 100 to any person who should contract influenza after having used the smoke ball three times daily for two weeks according to the printed directions. It also added that £ 100 was deposited in the bank showing its sincerity in the promise. The plaintiff Mrs. Carlill used the smoke-ball according of the directions to the company but contracted influenza. 
It was held that she could recover the reward because the advertisement was not a mere invitation to offer but an offer at large. Performance of the conditions is a sufficient acceptance without notification.



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