0Following points are important to note regarding the offer:
- The offer may be made to the world at large: It means that it is not necessary that an offer should be made to a specific person. An offer may be specific as well as a general one. A specific offer is one which is made to an ascertained person. And a general offer is one which is not made to a specific person, but to the public at large. It may be noted that in case of a general offer, the contract is not made with the entire world. But it is made only with the person who, having the knowledge of the offer, comes forward and acts7 according to the conditions of the offer.
- The offer may be positive or negative: An offer may be to do something or not to do something. An offer to do something is a positive offer, and an offer not to do something is a negative offer [Section 2 (d)].
- The offer may be express or implied: An offer may be express as well as implied. An offer which is expressed by words, written or spoken, is called an express offer. The offer which is expressed by conduct is called an implied offer [Section 9].
Example 2.5: Following are the examples of an express offer:
- A says to B. “Will you purchase my white horse for Rs. 2,000?”
- A writes to B in a letter, “I want to sell my car for Rs. 40,000.”
- A advertises in a newspaper that, “I will pay Rs. 500 to anyone who traces my missing son.”
Example 2.6: Following are the examples of an implied offer:
- A transport company runs buses on a particular route. There is an implied offer from the transport company to carry passengers on the route who are prepared to pay the specified fare. The acceptance of the offer is complete as soon as the passengers board the bus. A passenger who enters the bus also impliedly promises to pay the prescribed fare.
(ii) Similarly, in a self-service restaurant, there is an implied promise to pay for consuming the eatables.
- The cross offers do not result in contract: Where two persons make identical offers to each other in ignorance of each other’s offer, the offers are called ‘cross offers’. One’s offer cannot be treated as acceptance of other’s offer and no binding contract will come into existence.
Example 2.7: A, by a letter, offered to sell his motorcycle to B for Rs. 10,000. Without knowing about A’s offer, B also, by a letter, offered to buy A’s same motorcycle for Rs. 10,000. Both the offers crossed each other in post. In this case, the offers are cross offers, and thus, no binding contract will come into existence.
- An invitation to receive offer is not an offer: When a person advertises that he has got a stock of books to sell or houses to let out, there is no offer to be bound by any contract. In fact, such advertisements are ‘offer to receive offer’ and not an offer to sell in itself. Similarly, a shopkeeper’s catalogue of price is not an offer. It is only an invitation to receive offer from his customers. Display of goods in a shop, with price chits attached, is not an offer even if there is self-service system in a shop. The buyer cannot compel the seller to sell the goods at those prices.
- A mere statement of intention is not an offer: Sometimes, a person declares that he has the intention to do something. This does not amount to an offer. Such statements merely indicate the intentions that an offer will be made in future or an offer will be invited in future. Example 2.9: A, an auctioneer, announced that specified goods will be sold by auction on a particular day. This statement is not an offer to hold the auction. It is merely a statement of an intention to hold auction. A will not be liable if he does not hold the auction on specified day.
- An answer to a question is not an offer: An answer to a question cannot be taken as an offer.
