Types of Offer in Business Law

Express or Implied Offer

An offer can be both express and implied. If the offeror has offered in oral or written form, it is known as an expressed offer. But, if there is no written statement or oral expression of the offer which has only been shown by behavior, manner or conduct, it is called an implied or latent offer. For example: the advertisement of the job published by the company expresses an offer.

If the passenger takes the public bus to go to Lalitpur from Kathmandu, he pays the bus fare which the conductor of the bus expects easily here, the offer of the bus company or committee is implied or hidden one which can be understood by the conduct, manner, and behavior shown in the public area.

Direct or Indirect Offer

If the offerer meets the offeree in person and retains his offer, it is known as a direct offer. In this offer, there is no need of the middleman known as a third party. There is a face-to-face discussion and the offer between the contracting parties. In the case of an indirect offer, the offeror does not meet the offeree directly but takes the help of a middleman or publishes the offer via public advertisement. The offer that seeks the help of a third party is an indirect offer.

Specific or General Offer

If the offer has been retained to a specific business house, corporate agency or individuals the acceptance or denial must be from their side respectively. Specific offers determine only a specific person or party to do anything or not. On the other hand general offer is retained to the general public and stakeholders can accept the offer.

Also, Read Rules of Offer in Business Law

No specific person or institution has been specified in it. Muluki Civil Code 2074, section 511(1) refers to the general offer: “An individual gives an advertisement publicly that he would pay due remuneration if somebody performs the assigned job. If any individual does that job, the advertiser is bound to pay him the due fee as avowed in the advertisement.”

Counter offer

This is a type of offer that holds no legal status as it cannot create a contract. Or, the offer that has no legal status and that cannot create a contract is a counter offer. Here, the offeree offers another offer instead of endorsing the offer of the offeror. Let’s consider an example: Ram Bahadur offers Shyam Bahadur to sell his motorbike for Rs 65,000 but Shyam Bahadur instead of accepting the offer, makes another offer that is he is ready to buy it for Rs 50,000.

In this case, here is the use of counter offer which does not create lawful obligation and contract. If there is alteration, amendment in the offer of the offeror, it is counter offer. Muluki Civil Code 2074 section 509(f) deals with it, “in case a person has been presented a proposal accepts it after altering particular content in the proposal or attaching any condition thereto,” is deemed to be repealed.

Identical offer

If there are two identical offers, there cannot be a contract. Two identical offers that have the same subject and nature do not hold legal status. If two parties offer to each other, without prior information about the same content, it can’t be the contract. It can’t grab acceptance since there is double-dealing. For instance, ‘A’ offers ‘B’ to sell 100 iron for Rs,8,800 per ton on the same day ‘B’ also offers ‘A’ to buy 100 ton iron for Rs 8,800 via post office, there is no contract.

Since none of them know either side’s offer nor there is acceptance of the contracting parties. The offer of the offeror must be accepted by the offeree. Otherwise, it can’t create a contract. In fact in the above offer though there is the same market price but not either information or acceptance.

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