Proposal :According to Sec. 2(a )
When one person signified to another person his
willingness to do or not to do or abstain from
doing something with a view to obtain the consent
of that person.
1. At least two parties : in order to make a proposal there must be at least two
parties, i.e. the proposer and the offeree or acceptor. It is because, "no man can in
his own right, be under an obligation to himself.
”(Faulkner v. Lowe)
2.A proposal may be positive or negative : A proposal may be positive or nagative.
It is positive when the proposer expresses his willingness to abstain from doing
anything. It is a negative proposal.
3. A proposal must be made to obtain assent : A proposal must be made with a
view to obtaining the assent of the offeree. A proposal made without any intention
to get the assent of the other, is no proposal in the eyes of law.
4. Proposal must be made with an intention to create legal relations: A proposal
made without any intention to create legal relations, will not be a legal proposal.
The intention of parties is determined by the terms of the agreement as well as by
the surrounding circumstainces of the proposal.
5. It must be signified or communicated: Every proposal is complete only when
the proposal signifies to communicates it to the party to whom he wants to
communicate it.If the intended party does not come to know about the offer is
ON THE BASIS OF MODE OF MAKING AN OFFER
1. Express offer: An offer made in words, written or spoken, is called as an express
2. Implied offer: An offer made otherwise than in words,is known as an implied
offer.Such an offer is inferred from the conduct of parties or circumstances of the
ON THE BASIS OF OFFREES
1.Specific offer: An offer made to a specific or a particular or an ascertained person is
known as specific offer.Such an offer can be accepted by the particular or specific
2. General offer: An offer made to the public at large or to the whole world, is a general
offer. Such an offer may be accepted by any person from among the public who has a
knowledge of it. It does not require any prier acceptance.
On the basis of nature of offer :
1. Cross offer: when two persons make indicate offers to each others, without having
knowledge of each other’s offers, are known as cross offer. They are indipendent and
intical offers of the respective parties. Such offer do not constitute a contract even
though both the parties intend to do or not to do the same thing. When one the
parties accepts the offer of the other parties, contract conmes into existence.
Definition:Acceptance is the assent of the of offeree to an offer
made to him. It is a communication of his intention to be bound by
the term of the offer.
Acc. to sec.2(b) When the person to whom the proposal is made
signifies his assent thereto, the proposal is said to be accepted. A
proposal when accepted becomes a promise.
An offer is complete when it is properly communicated to the
offeree. Communication of offer is complete when it comes to the
knowledge of the person to whom it is made.[sec.4,para 1]
Communication of acceptance of an offer completes at different
times as against the offeror/proposer and offeree. The time of
completion of communication of acceptance against each of them is
(i)As against the proposer/offeror: The communication of an
acceptance is complete as against the offeror. When it is put into a
course of transmission to him so as to be out of the power of the
acceptor. After such communication, the offeror is bound by the
(ii)As against the acceptor: The communication of acceptance as
against the acceptor is complete when it comes to the knowledge of
the offeror. [Sec.4 para 2]
Revocation means ‘withdrawing’ or ‘taking’ back. Offer as well as
acceptance may be revoked. The communication of revocation
completes at two different counts:
(i)As against the person who makes:The communication of
revocation is complete as against the person who makes it, when it
is put into a course of transmission to the person to whom it is
made, so as to be out of the power of the person who makes
(ii)As against the person to whom it is made:The communication is
complete as against the person to whom it is made, when it comes
to his knowledge. [Sec.4]
An acceptance may be revoked at any time
before the communication of acceptance is
complete as against the acceptor, but not
afterwards [sec. 5 para-2]