Types of Offer under general practice
Types of Offer under General Practice
An offer is a proposal made by one party (offeror) to another (offeree) indicating a willingness to enter into a contract on certain terms, with the intention that it shall become binding once accepted.
1. Express Offer
An express offer is one that is clearly stated, either orally or in writing.
The terms of the offer are explicitly communicated.
Example: A person offers to sell a bike for ₹50,000 verbally or in writing.
Case Law:
Carlill v. Carbolic Smoke Ball Co. (1893)
The company made an express offer in an advertisement promising reward upon use of their product.
2. Implied Offer
An implied offer is not directly stated but is inferred from the conduct or circumstances of the parties.
It arises from the behavior or situation that reasonably indicates an intention to make an offer.
Example: When you pick up an item in a store and take it to the counter, there is an implied offer to buy it.
Case Law:
Fisher v. Bell (1961)
Displaying goods with price tags is considered an invitation to treat, but conduct like placing goods in a shopping basket implies an offer to buy.
3. General Offer
A general offer is made to the public at large or a large group of people.
It is not directed to any specific person.
Anyone who fulfills the conditions of the offer can accept and create a contract.
Case Law:
Carlill v. Carbolic Smoke Ball Co. (1893)
The company’s advertisement was a general offer to anyone who used the product and got sick.
4. Specific Offer
A specific offer is made to a particular person or group.
Only the person(s) to whom the offer is made can accept it.
Case Law:
Harvey v. Facey (1893)
An offer made specifically to the person requesting information, and acceptance must come from that person alone.
5. Cross Offer
Occurs when two parties make identical offers to each other at the same time without knowledge of the other’s offer.
Since no acceptance takes place, there is no contract.
Case Law:
Livingstone v. Evans (1925)
Demonstrated that cross offers do not amount to acceptance.
6. Counter Offer
When the offeree modifies or rejects the original offer and proposes a new offer.
A counter offer rejects the original offer and creates a new offer.
Case Law:
Hyde v. Wrench (1840)
A counter offer terminates the original offer.
7. Standing Offer
An offer that remains open for acceptance over a period of time.
Used often in business, where one party offers to supply goods or services at stated prices.
8. Option Offer
An offer made with a promise to keep the offer open for a certain period in exchange for consideration.
The offeror cannot revoke the offer during this period.
Case Law:
Dickinson v. Dodds (1876)
Distinguished between revocation and option contracts.
Summary Table
| Type of Offer | Description | Key Feature | Case Law Example |
|---|---|---|---|
| Express Offer | Clearly stated, verbally or in writing | Explicit terms | Carlill v. Carbolic Smoke Ball Co. |
| Implied Offer | Inferred from conduct or circumstances | No explicit statement | Fisher v. Bell |
| General Offer | Made to public or large group | Accepted by anyone fulfilling terms | Carlill v. Carbolic Smoke Ball Co. |
| Specific Offer | Made to particular person(s) | Acceptance only by that person | Harvey v. Facey |
| Cross Offer | Two identical offers made simultaneously | No acceptance, no contract | Livingstone v. Evans |
| Counter Offer | New offer rejecting the original offer | Terminates original offer | Hyde v. Wrench |
| Standing Offer | Open for acceptance over time | Continual offer | (General Business Practice) |
| Option Offer | Offer kept open for a period with consideration | Irrevocable during option period | Dickinson v. Dodds |
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