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Saturday, 25 February 2012

Proposal or Offer


Offer or proposal is the starting point in the formation of a contract. 

Section 2 (a) defines proposal as
When one person signifies to other his willingness to do or abstain from doing anything with a view to obtaining the assent of that other to such act or abstinence.”

The word proposal is synonymous with the English word ‘offer’. The person making the proposal is called the proposer or offeror and the person to whom the proposal is made is called the offeree.

Example: A offer to sell his motor cycle to B for Rs. 3000. B agrees to pay A Rs. 3000 for the motor cycle. Here A is called the offeror or promisor and B the offeree or promisor.

Section 2 (a) reveals 3 essentials elements in an ‘offer’:

(a)        Expressions of willingness to do or not to do something,
(b)        Made to another person i.e. a person cannot make a offer to himself,
(c)         With the object of gaining the consent of the other to such act or abstinence.

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