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.
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.
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]
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]
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 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
A bid at an auction is an implied offer to buy
Stepping into a bus
Consuming food at a self service restaurant
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
The plea that there was no contract, not allowed by
Conduct of the parties implied the contract.
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.