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Unit 2: Offer and Acceptance

party to such act or abstinence [S.2 (a)]. Thus, there may be ‘positive’ or ‘negative’ acts which the Notes
offeror is willing to do.

Example: (i) Anna offers to sell her a book to Begum. Anna is making an offer to do
something, i.e., to sell her a book. It is a positive act on the part of the offerer.

(ii) Amin offers not to file a suit against Bedi, if the latter pays Amin the amount of ` 10,000
outstanding. Here the act of Amin is a negative one i.e. he is offering to abstain from fi ling a
suit.
An offer is made with a view to obtaining the assent of the offeree to the proposed act or
abstinence. In Example (i) Anna is making an offer to sell a book with a view to obtaining the
assent of Begum. Similarly, in Example (ii), Amin is making an offer to Bedi with a view to
obtaining Bedi’s assent thereto.
2.2 Modes of making an Offer

An offer can be made by any act or omission of party proposing by which he intends to
communicate such proposal or which has the effect of communicating it to the other (S.3). An
offer can be either express or implied, and specific or general.

Express offer. It means an offer made by words (whether written or oral). The written offer can be
made by letters, telegrams, telex messages, advertisements, etc. The oral offer can be made either
in person or over telephone.

Examples: A real estate company proposes, by a letter, to sell a flat to Rajiv at a certain
price. This is an offer by an act by written words (i.e., letter). This is also known as an express
offer.

If the company proposes, over telephone, to sell the flat to Rajiv at a certain price then this is an
offer by an act (by oral words). This is an express offer.
Implied offer. It is an offer made by conduct. It is made by positive acts or signs so that the person
acting or making signs means to say or convey something. However, silence of a party can, in no
case, amounts to offer by conduct.

Example: A company owns a fleet of motor boats for taking people from Mumbai to Goa.

The boats are in the waters at the Gateway of India. This is an offer by conduct to take passengers
from Mumbai to Goa. Even if the in-charge of the boat does not speak or call the passengers,
the very fact that the motor boat is in the waters near Gateway of India signifi es company’s
willingness to do an act with a view to obtaining the assent of other(s) (i.e., would-be passengers).
This is an example of an implied offer.
Offer by abstinence. An offer can also be made by a party by omission to do something. This
includes such conduct or forbearance on one’s part that the other person takes it as his willingness
or assent.

Example: Akbar, a creditor, offers not to file a suit against Begum, a debtor, if the latter

pays him the amount of ` 2000 outstanding. This is an offer by abstinence or omission to do
something.

Specific and general offers. An offer can be made either to (i) A definite person or a group of

persons, or to (ii) the public at large. An offer made either to a definite person or a group of
persons is a specific offer. The specific offer can be accepted by that person to whom it has been

made. Thus, if a real estate company offers to sell a flat to Amar at a certain price, then it is only

Amar who can accept it. The offer made to the public at large is a general offer. A general offer
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