The document discusses the definition and essential elements of a valid offer, acceptance, and consideration in contract law. It defines an offer as a willingness to do or abstain from doing something with the intent of gaining consent from another. An offer must express this willingness, be made to another person, and intend to gain their consent. The document outlines different types of offers based on how they are made (expressly or impliedly) and who they are made to (specific individuals or generally to all).

2. UNIT II
Offer and Acceptance:
Definition of Valid Offer, Acceptance and
Consideration -Essential elements of a Valid
Offer, Acceptance and Consideration.

3. 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
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.”
• 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
• Ex; A offers to sell his motor cycle to B for Rs. 3,000. B agrees to pay
A Rs. 3,000 for the motor cycle. Here A is called the offeror or
promisor and B the offeree or promisee.

4. OFFER
Section 2(a) reveals 3 essential elements in an
‘offer’:
1. Expression of willingness to do or not to do
something,
2. Made to another person i.e., a person cannot
make an offer to himself,
3. With the object of gaining the consent of the
other person to such act or abstinence.
Thus a casual enquiry, information, a statement of
fact or statement of mere intention lacking the
above mentioned three essentials are not offers.

5. KINDS OF 0FFER
Kinds of Offer: Offers or Proposals may be
classified on the basis of:
1. How an offer is made?
2. To whom an offer is made?
KINDS OF OFFER
HOW MADE? TO WHOM MADE?
EXPRESS OFFER
IMPLIED OFFER SPECIFIC OFFER
GENERAL OFFER

6. KINDS OF 0FFER
1. How an offer is made:
Express Offer – an express offer is one which may be made by words
spoken or written such as letter, telegram telex, fax message, e mail or
through internet.
Ex: A offers to sell his pen t0 B for Rs. 20, it is an express offer
Implied Offer – an implied offer is one which may be gathered from
the conduct of the party or the circumstances of the case.
Ex: where a person goes to a doctor for treatment, his conduct implies
an offer that if the treatment is given, the offer or will pay the usual
charges. Stepping into a local bus, consuming eatables at restaurant,
without being asked to do so etc., create implied promises to pay for
the benefits enjoyed

7. KINDS OF 0FFER
2. To whom an offer is made:
Specific Offer – an offer made to a definite person or body of persons
is called a Specific Offer. A specific offer can usually be accepted only
by the person or persons to whom it is made.
General Offer – when an offer is addressed to the whole world, it is
called a General Offer. A general offer can be accepted by any one.
Ex: A promises to give Rs. 100 to B if he brings back his missing dog,
this is a specific offer and can only be accepted by B, but if A issues a
public advertisement to the effect that he would give Rs. 500 to
anyone who brings back his missing dog, such an advertisement
amounts to a general offer and any member of the public can accept
the said offer by searching for and bringing back A’s missing dog

8. KINDS OF 0FFER
The leading case on this point is
CARLILL Vs CARBOLIC SMOKE BALL CO. (1893)
In this case, the Carbolic Smoke Ball Co. offered by
advertisement a reward of £100 to any person who should
contact influenza after having used the smoke ball three times
daily for two weeks according to the printed directions. It also
added that £100 were deposited in the bank showing its
sincerity in the promise. The plaintiff Mrs. Carlill used the
smoke ball according to the directions to the company but
contracted influenza. It was held that she could recover the
reward because the advertisement was not a mere invitation
to offer but an offer at large. Performance of the conditions is
a sufficient acceptance without notification

9. OFFER IS DIFFERENT FROM…
An offer must be distinguished from
1. A mere statement of intention
2. An invitation to offer
3. A mere communication of information
4. Casual enquiry
5. A prospectus
6. Advertisement

10. OFFER IS DIFFERENT FROM…
• A mere statement of intention, ex., an announcement of a
forthcoming auction sale. Thus a person who attends the
advertised place of auction could not sue for breach of
contract if the sale were cancelled
• An invitation to offer, ex., an advertisement in a newspaper
the display of goods in shop window with prices marked
upon them; the display of priced goods in a self service
store.
• A mere communication of information, in the course of
negotiations' ex., statement of the lowest price made in
answer to an enquiry as to the lowest price for sale. A
catalogue of goods for sale ex., a book seller’s catalogue of
books with prices stated

11. OFFER IS DIFFERENT FROM…
• A causal enquiry ex., do you intend to sell your
computer? is not an offer.
• A prospectus inviting the public to subscribe
to the shares or debentures of a company
• Advertisement for the tenders