Essential of valid offer:

The following are legal rules or essential of a valid offer,

1- Express or implied offer:

An offer may be made by words or conduct. An offer which is made by words spoken or written is called an express offer. The implied offer appears from the actions, conduct of parties, course of dealings or circumstances of the case.

Example:

a-    M says to N that he will sell his car to him for Rs. 400,000. it is an express offer.

b-    A railway coolie carries the luggage of B whith out asking to do so. B allows him to do so. It is an implied offer.

c-    New Khan Company runs buses to carry passengers at scheduled fares. This is an implied offer by the company.

2- Legal relations:

The offer must be made to create legal relations other wise there is no agreement. If an offer does not give rise to legal obligations between the parties, it is not a valid offer. In business transactions it is presumed that the parties intend to create legal relations.

Examples:

a-    A invites Y to dinner and Y accepts the invitation. It does not create legal relations, so there is no agreement.

b-    A offers to sell his watch to W for Rs. 4,000 and W agrees. There is an agreement because the parties intend to create legal relations.

c-    Five friends agreed to enter a newspaper competition and share any winnings. It was held that they intended to create legal relations so there was a contract.(Simpkins vs. Pays).

3- Definite and clear:

An offer must be definite and clear. If the terms of an offer are not definit and clear, it can not be called a valid offer. If such offer is accepted, it can not create a binding contract. An agreement to agree in future is not a contract because the terms of agreement are not clear.

Examples:

a-    A has two motorcycle. He offers B to sell one motorcycle for Rs. 35,000. it is not a valid offer because it is not clear which motor cycle A wants to sell.

b-    X purchased a horse from Y and promised to buy another, if the first one proved lucky. X refused to buy the second horse. Y could not enforce the agreement, as it is unclear. (Taylor vs. Portington).

4- different from invitation to offer:

An offer is different from an invitation to offer. In an invitation to offer, the person making the invitation does not make an offer but only invites the other party to make an offer. His object is to inform that he is willing to deal with any body who is willing to deal with him.

Examples:

a- P displays goods for an auction sale. It is not an offer. The offer will come from the buyer in the form of bid.

b- F advertised to sell his furniture at bury on specified day. G came form Newyork to attend the auction but all furniture was withdrawn from sale. G sued F for loss of time and expenses. Held, F could not recover expenses because the advisement was an invitation to offer. (Haris vs. Nickerson).

5- Specific or genral:

when an offer is made to a specific person or group of person. It is called specific offer. Such an offer can be accepted boly by the person or persons to whom it is made. A gereral offer is made to public in geneal and it may be accepted by any person who fulfuls the conditions mentioned in it.

Examples:

a-    Q makes an offer to R to sell his car for Rs 200,000, it is an offer. In this case only R can and or accept it.

b-    A announces in a newspaper a reward of Rs 3,000 for any one who will returen his lost radio. It is a gereral offer.

c-    The ABC Co. advertised to pay Rs 4,000 to any person who contracts flue after using their medicine. Mrs. Carlisll used the medicines but suffered from  fule. she sued for the reward. The company was held liable. (Carlil vs. Carbolic Smok Balls Co).

6- Communitation with offeree:

an offer is effective only when it is communicated to the offeree. If an offer is not communicated to the offeree, it can not be accepted. An acceptance of offer without having knowledge of such offer is not a valid acceptance and does not create any legal obligatons. This is an offer which is not communicated is not a valid offer.

Example:

A,s son was missing from home. He sent his servant H, in search of the boy. When the servant H left, A announced  a reward of Rs 1,000 for any one who gives information about the boy. The servant before the announcement found the boy and informed A. later, he claimed for the reward. He failed on the grounds that he could not accept the offer unless he had the knowledge of it.(Lalman vs. Gauri Datt).

7- Nagative condition:

an offer cannot contain a condition that the offer would be considered as accepted, if acceptance is not communicated up to a certain date. If the offerr does not reply, there is no contrat because an obliagation to reply can not be imposed on the grounds of justice.

Example:

A wrote to C to sell his book adding that if he did not reply within 10 days, the offer would be considered as accepted. There is no contract.

8- Conditions in offer:

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 prescribes a specific mode of acceptance, the offeree must adopt the same mode of acceptance. If the offeree does not follow the prescribe mode, the offeror must inform the offeree regarding its rejection otherwise he is condidered to have accepted the acceptance.

Example:

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

9- cross offer:

When two parties make similar offers to each other without having knowledge of other,s offer, it is called cross-offer. The acceptance of cross offer does not result in complete agreement.