Page 3 - 01. Indian Contract Act, 1872

1. Offer or proposal

 It refers to a proposal by one party to another to enter into a legally binding
agreement with him or her.

 Sec 2(a) of the Act defines it as –
“when one person signifies to another willingness to do or abstain from doing

anything, with a view to obtain the assent of that other to such act or abstinence,

he is said to make a proposal”.
 Offeror or Promisor - The party making an offer

 Offeree or Promisee – The party to whom offer is made.
Rules relating to offer

 It must be capable of creating legal relations

 It must be certain, definite and not vague
 It may be expressed or implied

 It must be distinguished from an invitation to offer
 It may be specific or general

 It should not contain a term non compliance of which would amount to
acceptance

Types of offer: general; Specific, cross, counter, open etc.

General & Specific offer
 Offer made to public at large with or without any time limit is general offer.

 Offer made to a particular and specified person / persons and that can be
accepted by that specific person/ persons only is specific offer.

Q:
(i) A co advertised that it would give a reward of £100 to

anyone who contracted influenza after using its smoke balls
for a certain period according to printed directions.

(ii) Mrs. Carlill purchased and used smoke balls as per the
printed instructions, even then contracted influenza

(iii) She claimed the reward of £100

(iv) Co. resisted the claim on the ground that offer was not made

to her and she had also not communicated her acceptance to
the offer.

Can she claim the reward? 3
A: She could recover the reward as she had accepted the co‟s offer by
complying with terms.