This document discusses different types of offers in contract law. It defines a counter offer as rejecting the original offer and making a new offer, using the example of A offering to sell their house to B for Rs. 2 lakhs, but B counters with Rs. 1 lakh. This counter offer rejects the original and creates a new offer, so if B changes their mind later, they cannot accept the original Rs. 2 lakh offer as it has lapsed. The document also discusses cross offers, where two parties simultaneously make identical offers to each other without knowledge of the other's offer, and explains that cross offers alone do not constitute acceptance.

1. Presentation on
Counter Offer and Tender Offer
Fasna

2. What is an offer ??
As per Sec.2 (a) of the contract Act, “ When one
person signifies to another, his willingness to do or
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.
 The person making the proposal is called the
proposer of offeror.
 The person accepting the proposal is called the
offeree.

3. Different kinds of offers
• An offer may be General or Specific
• Standing offer ( Open offer)
• Counter Offer
• Cross Offers
• Invitation to Offer

4. Counter Offer
A counter offer is rejecting the
original offer and making a new offer. The new
offer is the counter offer.

5. EXAMPLE :
A offers to sell his house for 2 lakhs to B. B
accepts to purchase it for 1 lakh.
• The acceptance is a counter offer. It is not a
valid acceptance.
• If B changes his mind and accepts the original
offer, he cannot do so, as the first offer has
already lapsed.

6. Cross Offer
When two parties make identical
offer to each other in ignorance of each other’s,
such offers are called cross offers. They shall not
constitute acceptance of one’s offer by the other.

7. EXAMPLE :
A by letter, offers to sell his car to B for Rs.
50000 and likewise B., by a letter offers to buy
the same car for Rs.50000. Both the letters
cross each other in the postal transit.
• It was held in one case that mere cross-offers
made in ignorance of each other would not
create a contract because there is no
acceptance in the cross-offers.
• A contract can arise only when acceptance is
given.