Proposal (offer) is the starting point of a contract. When one wants to enter into a contract, he makes someone proposal to another. Let’s see in detail with example what is proposal.
What is Proposal
The proposal and offer are the same in the meaning of the law and has been defined under section 2(a) of the contract Act 1872 as follows:
See Also: Modes of Cancellation of Proposal
“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, he is said to make a proposal.”
This definition of the proposal reveals the following three points:
- It is an expression of willingness to do or not to do something.
- It is always made by one person to another person. It means there are at least two parties to a proposal.
- It is always made to obtain the consent of the person to whom it is made.
From the above-mentioned points, we find that it is the willingness of one person given to another person to do or to abstain from doing (not to do) something with the view to get the consent of another person about the same matter.
There are two parties in a proposal i.e. the offerer (Proposer) and offeree (proposee) the person who makes the proposal is known is Proposer or offerer and the person to whom the proposal is made is known as Proposee or offerer.
When the proposer signifies his willingness to do or to abstain from doing (not to do) in order to get its acceptance from the offeree, such act of the proposer is called an offer or proposal.
Examples of Proposal
- “A” offer to sell his horse to B for $30000. It is a proposal made by A to B and B has ä right to accept or reject the proposal.
- “A” signifies his willingness to B that he will go to Karachi to transact some business for B. It is also a proposal made by A.
When a shopkeeper opens his shop to sell goods at a prescribed price.
It is also an offer to the general public to purchase goods at one thing should be kept in mind that proposal must be made with the intention of creating legal rights and obligations, otherwise, there will be no proposal.
Illustration: Javed invites Shahid to dinner and Shahid accepts his invitation there will be no agreement because the parties do not intend to create a legal relationship.
Different Types of Proposal
The proposal or offer may be classified into the following two types: Expressed proposal AND Implied proposal. These two are actually the basic two types of proposal.
Expressed Offer
When the proposal is made clear in words spoken or written, it is called an expressed proposal or expressed offer.
Illustration: A states by spoken words to B that he wants to sell his bicycle for $2000. It will be an expressed offer. 1000 units this is a product for $50 per unit. It is also an expressed offer.
Implied Offer
When the proposal is not made in words spoken or written but is conveyed by the conduct or behavior of the proposer, it is called an implied offer. It can further be classified into two types.
- Specific offer
- General offer
Illustration 1: It is an implied as well as specific offer from the owner of a bus going from Multan to Bahawalpur that they are willing to carry only those persons who want to go to Bahawalpur and purchase the ticket of the bus.
Illustration 2: When the shopkeeper opens a shop, it is an implied and general offer from him that he wants to sell goods at prescribed rates to any person who wants to purchase them.
Specific Offer
When the proposal is made to a specific person of a definite class of persons, it is known as a specific offer.
It can only be accepted by a particular person to whom the proposal is made and not by any other person.
Illustration: A offers to B with spoken words to sell his bicycle for $2000. It is an expressed as well as a specific offer made to B and can only be accepted by B and nothing else.
General offer
When the offer is not made to a specific person but is made to the whole world or to the people of the whole country, or to many persons then it is called general offer.
This offer can be accepted by any person who fulfills the conditions of the proposer.
It should be kept in mind that contract cannot be made with the whole of the world. It can only be made with the person who performs (accepts) the conditions of the proposal.
Illustration: A advertise in a newspaper that he will pay $50000 to a person who will provide information about his stolen car. It will be an expressed as well as general offer.
