WHAT CONSTITUTES AS AN OFFER?

Generally, the whole contracting process starts when one party makes an offer or gives a proposal to another party. Without an offer or a proposal, there is no other way to start the contracting process. For this offer to turn into an agreement, the other party is required to accept the offer. This is how a normal agreement or a contract comes into force. The two parties involved in the agreement have given their consent to deliver the contract's terms before expiry. The contracting process depends on the offer and acceptance of both parties of the contract.

Many people have confusion or doubt in their minds about "what is the offer?" So, the best answer to this is " An offer comes into force when one party shows his/her willingness to create a legal contract with another party based on some predetermined terms that are fixed." From the offer's definition, it is clear that a contract is created only by accepting an offer. The person who makes the offer is termed an offeror, and the person who accepts the offer is termed an offeree.

The characteristics of the offer must be in line with the legal compliances. The offeror's offer must be valid so that the offeree can accept it and turn it into a contract. So, let's discuss the conditions that make the offer valid: -

Intentions for Creating a Legal Contract

The offer meant to be sent to the other party for acceptance must show the offeror's intent to create this legal contract. If the offeror's intent is not shown clearly in the contract, then it is difficult for the offeree to know the fundamental objective of the contract. So, a valid contract offer must clearly show the offeror's intents so that the process of offer and acceptance can get executed smoothly.

Capable of Creating Legal Relations

The offeror must have the intention to create legal relations, and they must intend that if their offer gets accepted, a legally binding agreement will get created. For example, suppose A accepts an invitation to dine with B on a specific date but fails to turn up on the appointed date. In that case, it does not mean that A can get sued for breach of contract offer because, in domestic arrangements, there is no legal intent from any of the parties.

Specific, Definite, and Not Vague

No contract offer can exist if the terms mentioned in the offer are vague or loose, and indefinite. Both parties must have a clear idea of the legal consequences that arise out of the contract. Vague offers do not convey the actual meaning of the contract. For example, an offer by A to B to pay the latter a certain sum of money if the latter agrees to marry A's daughter is not a valid offer because the amount to be paid is not mentioned in the offer. For an offer to be valid, it should be clear.

Communicative

A person cannot make an offer to himself that is not valid, and it is mandatory to communicate the offer to an offeree. If there is no communication of an offer, there is no acceptance, resulting in no contract offer. For example, if A writes a letter to B offering to sell their watch to B at Rs 400 but never posts the letter and keeps it with himself, it is not considered an offer, and B will never be able to accept it. A valid offer is always communicated to the offeree by the offeror.

Conditional

It is possible to make an offer subject to a condition. In such cases, it can be accepted only subject to that condition. A conditional offer lapses when the offeree does not accept the condition. Thus, a conditional offer made by the company's management to the workers' trade union to pay a certain amount of money lapses when the condition does not get accepted by the trade union. A contract offer formed on a conditional offer is considered valid. But some conditional offers are considered invalid when the terms of the offer are unreasonable and in cases where the offeree is unaware of the terms.

Acceptance Without Consent

An offer must not contain a term the non-compliance of which will result in acceptance of the offer. In simpler words, while making an offer, one cannot say that if the offer is not accepted before a certain date, it will be presumed as accepted. In such a case, the offeree's consent is not taken for the acceptance of the offer. Such offers are not valid because the authority to accept is only in the hands of the offeree. A valid offer must not contain such terms.

Invitation to Offer

An offer must get distinguished from an invitation to offer. In case of an invitation to offer, the actual aim is merely to circulate information of readiness to negotiate business with anybody who on such information comes to the person sending it. According to the business laws, such invitations are not considered an offer, and these offers do not become promises on acceptance. For example, the goods displayed in a shop with price tags attached is an invitation to offer. Similarly, advertisement for sale or auction of certain goods, notice for tender, statement in the railway timetable regarding the departure of a certain train at a certain time is not an offer but an invitation. An invitation to offer is not considered an offer valid.

Specific and General

There are two types of valid offers one is specific, and the other is general. The offer is meant for a specified person or a specified group of persons in a specific offer. In this case, only the person or the group specified to have the authority to accept the offer. In a general offer, the offer is made to the whole public. In this case, anyone who is fulfilling the offer's conditions has the authority to accept the offer. To make an offer valid, it must be a specific offer or a general offer.

Conclusion

So, these were a few characteristics of offers that can be constituted in a contract. From the article, anyone can view questions like "what is the offer?" and " what is considered a valid offer?". This can help the readers to gain detailed knowledge of different aspects and concepts of a valid offer. It clears all the confusion related to the offering and acceptance of a contract.

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Author: Shradha Kabra