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Proposal or Offer

The whole process of entering into a contract starts with a proposal or an offer made by one party to another. To agree such a proposal must be accepted. Let us take a look at the definition and classification of an offer and the essentials of a valid offer.

Proposal or Offer

According to the Indian Contract Act 1872, the proposal is defined in Section 2 (a) as “when one person will signify to another person his willingness to do or not do something to obtain the assent of such person to such an act or abstinence, he is said to make a proposal or an offer.”

Essentials of a Valid offer:

Classification of Offer

There can be many types of offers based on their nature, timing, intention, etc. Let us take a look at the classifications of offers.

Essentials of a Valid Offer

Here are some of the few essentials that make the offer valid.

  1. Offer must create Legal Relations.
  2. The offer must be Clear, not Vague.
  3. The offer must be Communicated to the Offeree.
  4. The offer may be conditional.
  5. Offer cannot contain a Negative condition.
  6. It can be Specific or General.
  7. Offer may be Expressed or Implied.
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