Question 1 (b)
Offer under the Indian Contract Act and the rules for a valid offer
9 marks
- Time to write
- About 18 minutes
- Notes
- Crux notes
Question
Question 1 (b) · 9 marksUnder the Indian Contract Act, 1872, define the term 'offer'. Also state which legal rules govern a valid offer.
Reworded from the university paper; the task is the same. The original paper belongs to the University of Delhi. See DU's question bank.
Before you write
Read off the question and its marks
Read from the question
- DefineA precise definition in one or two lines.
Write it in this order
- Read; underline the asks; jot your points 1 min
- 1 Definition, s. 2(a), and parties 2 marks 3 min
- 2 Kinds of offer 1 mark 2 min
- 3 Legal rules, with illustrations and case law 6 marks 11 min
- Check: every ask answered, key terms underlined 1 min
Easy marks
- Step 1 opens with the meaning: a one-line definition, the quickest mark in it.
Short on time? Trim steps 1 and 3 evenly rather than skip one: each is capped at its own marks.
Try it first. About 18 minutes for 9 marks. Write it out, then open the solution.
Solution
Hover or tap a marked figure, like 72,000, to see how it is made and where else it appears.
Definition. Section 2(a) of the Indian Contract Act, 1872 provides: “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, he is said to make a proposal”. "Proposal" and "offer" mean the same thing. The person making it is the offeror; the person to whom it is made is the offeree.
1A birthday invitation with balloons at the gate—warm words, not a contract.
Intention to create legal relationsA social invitation does not create legal relations even if accepted.
2'Give me some oil, whichever'—the shopkeeper can only scratch his head at that.
CertaintyThe terms must be certain, definite and not vague.
3He walks the lost boy home before ever seeing the reward poster—there was nothing to accept.
CommunicationThere can be no acceptance of an offer one does not know of.
Kinds of offer. An offer may be general (to the world at large) or specific (to a definite person); there are also cross offers, counter offers and standing (continuing) offers.
Legal rules regarding a valid offer:
- Intention to create legal relations. A social invitation does not create legal relations even if accepted: a guest who travelled to a birthday party could not recover his expenses when the host was absent.
- Certainty. The terms must be certain, definite and not vague. An offer to sell "100 quintals of oil" fails for uncertainty, unless the circumstances (for example, the offeror deals only in mustard oil) make it certain.
- Communication. The offer must be communicated to the offeree; there can be no acceptance of an offer one does not know of. In Lalman Shukla v. Gauri Dutt, a servant who traced the missing nephew before learning of the announced reward was held not entitled to it.
- With a view to obtaining assent. The offer must aim at the other party's assent.
- Conditions. An offer may be conditional, but it must not contain a term whose non-compliance amounts to acceptance (the offeror cannot say "if you do not reply, I shall take it that you accept").
- Form. It may be general or specific, and express or implied.
- Not an invitation to offer. An offer must be distinguished from an invitation to offer, such as a price quotation, catalogue or an ordinary advertisement of goods for sale (a definite reward advertisement can itself be a general offer).
Where the 9 marks sit
| # | Component | Marks |
|---|---|---|
| 1 | Definition, s. 2(a), and parties | 2 |
| 2 | Kinds of offer | 1 |
| 3 | Legal rules, with illustrations and case law | 6 |
| Total | 9 |
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