The Contract Act-1872

Offer and Acceptance

 

5. Rules regarding offer:

► An offer may be express or may be implied from the circumstances-

When an offer is made by stating so in words or in writing, it is called Express offer. When an offer is implied from the conduct of a person, it is called an implied offer.

Implied off-”a transport company runs tramway cars along the streets. This is an offer by the company to carry passengers at the scheduled fares. The offer is accepted when a passenger gets upon on a tram of becoming a passenger.” 

 

► An offer may be made to a definite person; to some definite classes of persons; or to the world at large-

An offer made to a definite person or a definite classes of person is called a specific offer.

An offer sent to all person or the world at large is called general offer. 

► Legal relationship is required-

The offer must be one which is one capable of creating legal relationship. A society party or invitation to play cards is not a legal relationship. 

►The terms of the offer must be certain, definite, unambiguous and not vague-

X says to Y, “I will give you some money if you marry Z”. This is not an offer. Because the amount of money is not certain 

 

► A mere intention is not an offer-

A distinction is made, between an “offer” and a “statement of intention”.

Intention to sell-a label on an article in a shopkeeper’s showcase stating ‘price Tk 10’ is considered to expression of an intention to sell the article at Tk 10. It is not an offer. The intended purchaser who wishes to buy is the proposer. The shopkeeper may or may not accept the proposal.

 

►An offer must be communicated to the offeree-

A person can not accept an offer unless he knows of the existence of the offer.

P offers a reward to anyone who returns his lost dog. Q finding the dogs brings it to P without having heard of the offer. Held, there was no contract between P and Q and the reward can not be claimed.

a)

 

►An offer may be conditional-

An offer may be conditional. In such cases, the conditions must be clearly communicated to the offeree.

If a person accept an offer without knowledge of the condition, the offerer cannot claim for fulfillment of the condition. 

 

►An offer may be conditional-

Ex-Strict enforcement- X agreed to buy goods from Y and signed an order form given by Y containing a number of clauses in small print, without reading them. Held, clauses were binding on X. (L’Estrange V. Graucob Ltd)

Ex-Strict enforcement-T, who could not read, took an excursion ticket on the railway. On the front of the ticket printed “for conditions see back”. One of the conditions was that the railway company would not be liable for personal injuries to passengers. T was injured. Held, T was bound by the conditions and could not recover any damage 

 

►An offer may be conditional-

Ex-against public interest-M delivered a new saree to a laundry for washing. On the back of the printed receipt it was stated that the customer would be entitled to recover only 15% of the market price of the article in case of loss. The saree was lost owing to the negligence of the Laundry. In a suit by M it was held that the term was unreasonable. Such a term would give a premium on dishonesty and is against the public interest. (Lily White V. R. Munnuswami) 

 

►An offer may be conditional-

A contract formed on a conditional offer is valid. The terms of the contract can be constructed strictly or leniently.

Conditional offers are invalid under the following circumstances:

i)Lake of reasonable notice

ii)Unreasonable terms

iii)Breach of fundamental rights

iv)Tortuous (usually disapproving) action by offerer. 

 

►Printed contracts:

Printed contracts or standard forms of contracts often contain a large number of terms and conditions which exclude liability under this contract.

For example, the life insurance  corporation, the railway administration, statutory corporation and big companies issue printed forms of contracts.