Meaning and Definitions of Offer in Business Law

Introduction of Offer and Acceptance

In a true sense, both offer and acceptance are the essential elements of a contract. If they lack, there is no contract. They are appendages to each other because there is no sense of the offer without receiving acceptance and there is no value of acceptance without an offer either. It proves that they are complementary to each other.

It is important to know, what is offered. What are the types of offers? What are its rules? How does it end? Including these queries, the legal and unlawful aspects of them shall be the subject to study it in a comprehensive way.

If the above-mentioned queries have not been studied, there is little knowledge of them. In true words, the foundation pillars of a contract are offer and acceptance. If any party with the due intention makes a contract offer a proposal and another party with due regard without conditions accepts it, there is a contract between them.

Also, Read Major Provisions or Characteristics of Contract Law.

Meaning and Definition of Offer

Generally, an offer means the promise put forward by the offeror to the offeree to do something or be ready to bear legal obligation. The offer sets out the terms upon which the offeror is willing to enter into contractual relations with the offeree. Every intention to do or not to do any job of the offeror cannot be regarded as an offer. To be the legal offer, it has to pass many measures. The legal promise is an offer in a real sense.

Definitions

“A willingness put forward by the offeror in front of the offeree with the intention of getting acceptance to do anything or not.” – Muluki Civil Code 2074, section 504 (3) (1)

“When a person signifies his willingness to do or to abstain from doing anything with a view to obtaining the assent of the other to such out or abstinence, he is said to make a proposal.” – Indian Contract Act 1872 section 2(a)

“An offer is an intimation by words or conduct of a willingness to enter into a legally binding contract, and which in its terms expressly or impliedly indicates that it is to become binding on the offeror as soon as it has been accepted by an act, forbearance or return promise in the part of the person to whom it is addressed.” – Anson

“Offer means a promise to do or refrain from doing some specified thing in the future, a display of willingness to enter into a contract on specified terms, made in a way that would lead a reasonable person to understand that an acceptance, having been sought, will result into a binding contract.” – Black’s Law Dictionary

It is true that the starting of lawful contract agreement starts with an offer. Generally, the two parties involved in the contract, sit together to evaluate the contents, terms, and references of the offer and the legal obligation or rights that they are to obtain from the offer. The offeror presents the offer that contains the matter, terms, and conditions with the intention of receiving assent.

In this way, the person who shows his willingness and sets the matters, terms, and conditions of the offer is known as the offeror, and one who has been presented with such things with the intention of acceptance is called the offeree. In short, an offer is a proposal put forward to the offeree with the intention of gaining acceptance.

The following example can clarify it. Bam Bahadur Thapa intends to sell his house to Shyam Bahadur Ghale for Rs. 1,00,000. Here, the offeror is Bam Bahadur and the offeree is Shyam Bahadur. The intention to sell a house for Rs. 1,00,000 is an offer.

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