Page 4 - 01. Indian Contract Act, 1872

Cross offer:

 It occurs when two persons make identical offers to each other, in ignorance
of each other‟s offer.

 It leads to termination of the original offer
Counter offer:

 Upon receipt of an offer from an offeror, if the offeree instead of accepting

straightway, modifies or varies the offer, he is said to make a counter offer.
 It leads to rejection of original offer.

Standing continuing / open offer:
 Offer which is made to public at large and open for public acceptance for a

certain time period.

 It refers to a tender to supply goods as and when required
 Each successive order given creates a separate contract

 It does not binds either party unless and until such orders are given

Offer and Invitation to offer:
 Offer is made to get the consent of other party

 Invitation to offer is made to initiate the offer according to the invitation
 Offer is made with an object to make a contract

 Invitation to offer does not result in any contract

 E.g of invitation to offer: (i) display of goods in a shop window with prices
market upon them (ii) price catalogues. Etc.

 Offer is different from a mere statement of intention. E.g announcement of a
coming auction sales.

Relevant Case Law :

* Harris Vs. Nickerson
When particular goods are advertised, for sales by auction, the
auctioneer does not contracts with anyone who attends the sale and is

intending to purchase those goods when they are actually put up for sale

 Offer is different from a mere communication of information in the course of
negotiation E.g price statement considering negotiation

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