ESSENTIALS OF A VALID OFFER

1.           Offer must be capable of creating legal relations. The offeror must intend the creation of legal relations. He must intend that if his offer is accepted a legally binding agreement shall result. A accepts an invitations to dine at B’s place on a certain date but fails to turn up on the appointed date, A cannot be sued for breach of a contract, because in contracts regulating social or domestic arrangements the presumptions is that parties do not intend legal consequences to follow from breach of contract.

The leading case is Balfour v. Balfour

2.           Offer must be certain, define and not vague. No contract can come into existence if the terms of the offer are vague or loose and indefinite. Both the parties should clear about the contract.

Case: - Taylor v. Portington (1885)

3.           Offer must be communicated to the offeree. There can be no offer by a person to himself. It must always be communicated to the offeree. If the re is no communication of an offer, there is no acceptance resulting in the contract.

4.           Offer must be made with a view to obtaining the assent of the other party.  An offer must be distinguished from mere expression of intention.

Case: - Harris V. Nickerson (1873)

5.           An offer may be conditional. An offer can be made subject to a condition. In that case can be accepted only subject to that condition. A conditional offer lapses when the condition is not accepted.

6.           Offer should not certain a term the non-compliance of which would amount to acceptance. One cannot say while making the offer if the offer is not accepted before a certain date, it will be presumed to have been accepted.

Example: A writes to B, “I offer to sell my house for Rs. 40000. If I do not receive a reply by Monday next, I shall assume that you have accepted the offer.” There will be no contract if B does not reply.

7.           Lapse of an offer. An offer lapse-

(a)     If either offeror or offeree dies before acceptance.

(b)     If it is not accepted within

(i)                     The specific time, or

(ii)                 A reasonable time, if not time is specified

(c)      If the offeree does not make a valid acceptance, for example makes a counter or conditional acceptance or if a particular manner of acceptance has been requested, he accepts in some other manner.

(d)     An offer can also lapse by revocation.

8.           An invitation to offer is not an offer. An offer must be distinguished from an invitation to offer. In the case of an “invitation to offer” the aim is merely to circulate information of readiness to negotiate business with anybody who on such information comes to the person sending it. Such invitations are not offer in the eyes of law and do not become promises on acceptance.