What is Proposal or Offer?
Section 2 (a) of the Indian Contract Act, 1872 defines a ‘Proposal’ as “when one person signifies his willingness to another 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”.
In simple words, a Proposal is defined as a statement of one person’s desire to engage in a contract with another person, with the knowledge that the other person’s acceptance of the proposal would form a binding agreement.
Proposal or Offer: Meaning, Legal Rules and Revocation
An essential piece of legislation, which was passed in 1872, is known as the Indian Contract Act. It is responsible for regulating the creation and execution of contracts in India. The notions of proposals & offers, that serve as the basis for the formation of legally binding agreements are at the core of this legal system. We are going to dig into the complexities of proposals as well as offers following the Indian Contract Act. We will investigate their meanings, the essence of these terms, and the legal ramifications that they have. The words ‘proposal’ and ‘offer’ are synonymous with each other and are used interchangeably.
Geeky Takeaways:
- A Contract is initiated when an offer is made by one party to another.
- To enter into an agreement, such an offer must be accepted.
- The person who is making the offer is known as the “offeror” or the “promisor”.
- Likewise, the person accepting such an offer is known as the “promisee” or the “acceptor”.
Table of Content
- What is Proposal or Offer?
- Legal Rules Regarding a Valid Offer
- Lapse and Revocation of an Offer
- Conclusion
- Frequently Asked Questions (FAQs)