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2 proposal or offer


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  • 2. MEANING OF ‘PROPOSAL’ When one person signifies to another his willingness to do or to abstain from doing anything, with a view to obtaining the assent of that other to such act or abstinence, he is said to make a proposal. [section 2(a)]. Two Important Elements:   Expression of the Offeror’s willingness To do something or  To abstain from doing something  Made with a view to obtain the assent of the other.  i.e, mere casual statement is not enough. 
  • 3.  A proposal also called offer is made when: One person to another distinct person  signifies ie, communicates with certainty and clarity  His willingness to do or to abstain from doing anything.    Not mere willingness to consider other persons willingness to do or to abstain from doing anything With a view to obtain the assent of the other.  Ie, with a view to create a legally binding obligation.
  • 4.  Communication, acceptance and revocation of proposals  The communication of proposals the acceptance of proposals, and the revocation of proposals and acceptances, respectively, are deemed to be made by any act or omission of the party proposing, accepting or revoking by which he intends to communicate such proposal acceptance or revocation, or which., has the effect of communicating it.[Sec.3]
  • 5.  Promises express and implied –  In so far as the proposal or acceptance of any promise is made in words, the promise is said to be express. In so far as such proposal or acceptance is made otherwise than in words, the promise is said to be implied.[Sec.4]
  • 6. THE PROCESS OF MAKING PROPOSAL  Communication of the proposal [Sec.3] The willingness when signified becomes a proposal  Signify means to indicate or declare   Implied proposals Implied from the conduct of the parties.  An offer made by conduct is called an “implied offer”.  When it is made with words written or spoken, then it is an “express offer”.  This implication can be made either by act or by omission. 
  • 7. A bid at an auction is an implied offer to buy  Stepping into a bus  Consuming food at a self service restaurant 
  • 8.  Oil &Natural gas Corpn Ltd v. Essar Steel Ltd [(2002) 2 Bom CR 379 ] A tender was successfully made and could not be signed waiting fulfillment of certain conditions.  The project was completed under the work order issued.  The plea that there was no contract, not allowed by the court.  Conduct of the parties implied the contract. 
  • 9. Haji Mohd Ishaq vMohd Iqbal [(1978) 2 SCC 493]  Goods supplied to the buyer and accepted by him and made the part payment.  The liability for the remaining payment arises. 