What are the essentials of a valid offer or proposal? As we know that proposal (offer) is the starting point of a contract.
When one wants to enter into a contract, he makes someone proposal to another. The following are the essentials of a valid proposal you need to know.
Essentials Of a Valid Offer or Proposal
A valid proposal must fulfil the following essentials/conditions:
Clear In Term
A proposal must be clear in terms and understandable by all the persons. It means that proposal must be made in such a way that everyone can understand It easily.
See Also: Different Types of Proposal
Until proposal is not understood by the offeree, its acceptance is not possible and there cannot be a promise. So, it is compulsory for a valid offer that it must be clear in terms and conditions.
Illustration: A offers to sell his watch to B either for $500 or for $1000. It cannot be a valid offer because its price is not clear.
Lawful object
The object of the offer must be lawful and not illegal or against the interests of the general public. As the proposal is the starting point of the contract, so if its object is unlawful then the binding contract is impossible.
Illustration: A offers to B $100,000, if he kills C. It is not a valid offer because its object is unlawful and illegal.
Message of proposal
The message of the proposal is always about to do or to abstain from doing something. Actually, the proposal is an expression of willingness of proposer to do or not do something.
Illustration: A essentials offers to B to sell his watch for $500. It is an expression to do something. X offers not to go to court against Y for a claim for of damage if Y pays $5000 to him. It is an expression not to do something.
Intention of proposer
The proposer always made a proposal to get the consent of the offeree. If it is made without such object,’ there cannot be a promise and proposal cannot be a valid one.
Illustration: A says to B that the price of his bicycle is $2000 00 it is an information and not a valid offer because its object is not to get the consent of B.
Legal Relationship
The proposal must be made with the intention of creating a legal relationship, otherwise, it will not be a proposal. It may be an invitation or something like this.
Illustration: A invites his friend B at dinner at his home and B accept the invitation. it is not a valid offer because it does not create a relationship.
If any of them commits a default, the other party cannot go to the court and cannot enforce the other.
Mode Of Proposal
The proposal may be made in writing, orally or by the conduct of the proposer.
When it is made clear in words spoken or written then it is an expressed offer and if it is conveyed by the conduct or behavior of the party then it is called an implied offer.
An offer is either expressed or implied it is a valid one if it fulfils all the other conditions of a valid offer.
Illustration: P offers to sell his mobile phone by words spoken to• Q for $3000, It is an expressed and valid offer.
Illustration: When A opens his shop to sell goods to customers then it is an implied offer to sell goods at a prescribed rate and is also a valid one.
Possibility Of Acceptance
The acceptance of the proposal must be possible. If the acceptance of the proposal is not possible, it will not be a valid offer.
Illustration: A person offers to pay $10000 if anyone makes alive a dead body. It will not be a valid offer because its acceptance is impossible,
Nature Of Offeree
The proposal may be made to a specific person or class of persons, or to the general public but in both cases, the offer is a valid one.
When it is made to a specific person or class of persons it is a specific offer and when it is made to the general public then it is called general offer.
Either the proposal is specific or general, it is valid if it fulfils all the other conditions of a valid offer.
Illustration: A offers to sell his watch to B for $100 is a specific offer and is a valid one.
Illustration: X offers to pay $50000 to a person who provides information to him about his stolen car. It is a general offer and is a valid one.
Communication of Proposal
The proper communication of the proposal is necessary. The proposal must be communicated so that it must come into the knowledge of the offeree.
If a person ignorant of the Proposal performs an act. There cannot be a contract.
Illustration: A advertised in a newspaper that he will pay $5000 to a person who will provide information about his lost horse.
B on ignorant of A’s proposal provides information about the horse. A is not bound to pay him $5000.
Proposal Distinguished from Invitation
The proposal is an expression of willingness of the proposer and it becomes promise when it is accepted by the offeree.
The invitation of the proposal is not a final expression and does not bind the parties.
Therefore, the invitation often offers an advertisement for sale of goods by auction, call of tenders and quotations is not an offer.
Illustration: A essentials calls tender for the erection of his building is an invitation to offer end, not an offer.
Silence Of Offeree is Not Acceptance
The silence of the offeree about the offer cannot be treated as acceptance of the offer. So’ the clear acceptance of the proposal from the propose is required.
See Also: What is Cancellation of Proposal
If the proposed attached a condition with the proposal that if its acceptance is not communicated to the offered up to a particular date, he will assume that proposal has been accepted, is not valid.
There can only be a contract when the proposee positively reply and accept the proposal.
Illustration: A says to B; “l wants to purchase 100 units of your k product for $50 each. Please reply up to June 30, otherwise.
I will assume that my proposal has been accepted.” It is invalid offer because no negative condition can be attached to the offer.
Revocation of Proposal Possible
A valid offer can be revoked at any time before its acceptance is completed as against the proposer and not afterwards.
Sometimes after giving an offer, the proposer v wants to cancel his proposal. It is possible only before the completion of the communication of its acceptance against the proposer and not afterwards.
Illustration: A offers to sell his bicycle to B for $2000. Later on, A withdraws his proposal before the dispatch of a message of acceptance by B. the proposal will stand cancelled.
