The first essential of a valid contract is an agreement i.e. offer and acceptance. An agreement arises when one party makes an offer and the other party accepts it.
Offer:
Definition:
Section 2(a) defines a proposal as, “when one party signifies to another his willingness to do or to abstain from doing any thing, with a view to obtaining the assent of that other to such act or abstinence, he is said to make a proposal.”
It means that when a person shows his willingness to do or not to do something to obtain the consent of other person; it is considered a proposal.
The person making the offer is called the offeror or promisor. The person to whom the offer is made is called the offeree. The person accepting the offer is called the promisee or acceptor. The word offer in English law is similar to the word “proposal” in Pakistan law but the word other is usually used in our practical life.
Example:
a- A offers to sell his car to B for Rs. 300,000. A makes an offer to B.
b- A promise to sell his motorcycle to D for Rs. 50,000. A makes an offer to D.