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What Is an Offer Explain the Rules of a Valid Offer under the Indian Contract Act 1872

2021年10月8日

In the legal context, an offer refers to a proposal made by one party to another that expresses a willingness to enter into a contract. An offer is a crucial component in the formation of a contract, and the Indian Contract Act, 1872 lays down specific rules for a valid offer.

An offer can be made in different ways, such as through written communication, spoken words, or conduct. The key requirement is that the offer must be communicated clearly to the other party. An offer made to the public at large is called a general offer and can be accepted by anyone who fulfills the conditions specified in the offer.

To be considered a valid offer, it must meet certain requirements:

1. Intention to create legal relations: The offeror must intend to create a legal relationship by making the offer. For example, an offer to play a game is not a legal offer as it does not create legal relations.

2. Definiteness: The offer must be specific and definite in its terms. It must leave no room for ambiguity or confusion. For example, an offer to buy a car for INR 5 lakhs is a definite offer.

3. Communication: The offer must be communicated to the offeree in a comprehensible manner. An offer made in a language that the other party does not understand is not a valid offer.

4. Invitation to offer: An invitation to offer is not a valid offer. For example, a shop displaying goods with price tags is not making an offer to sell those goods but an invitation to offer.

5. Lapse of time: An offer may lapse if it has not been accepted within a reasonable time or the time specified in the offer.

6. Revocation: The offeror may revoke the offer at any time before it is accepted, except when it is irrevocable. An offer made to the public at large is usually irrevocable.

7. Acceptance: The offer must be accepted by the offeree in its exact terms. If the offeree makes a counter-offer, it is not an acceptance but a rejection of the original offer.

In conclusion, an offer is a critical element of a contract, and it must meet specific requirements to be considered valid. The Indian Contract Act, 1872 details the rules for a valid offer, which include intention to create legal relations, definiteness, communication, invitation to offer, lapse of time, revocation, and acceptance. Adhering to these rules ensures that contracts are formed on a sound legal basis.