Rules regarding valid Offer:
Since offer is the starting point of the contract, it should be valid one and there are some rules for the validity of offer
- Intention to create legal relationship
For the creation of valid contract offer should be made with the intention to create legal relationship. Until and unless an offer doesn’t owe the intention to create legal relationship it doesn’t make a valid offer and contract itself. Generally following statement doesn’t have intention to create legal relationship and are not the valid offer in the eye of law
- Offer should be communicate to the offeree.
Offer should be communicate to the offeree for the validity of offer. If offeree doesn’t have knowledge about the offer or offer is not communicated then it can't create any valid contract and legal obligation to the parties.
In the case of LalMan Sukla v. Gauri Dutta, AIR 1913 489the Indian Court of law held that " For the creation of contract and legal obligation to the parties, offer should be communicate to the offeree for the acceptance and since there is not knowledge of offer to the offeree no contract has been made."
- Offer should be certain
Offer should be certain and unambiguous. The terms and condition of offer should be definite and clear. If there is confusion in terms of offer then it may give the confusion in obligation to the parties itself. Thus offer should be certain for its validity. E.g. If X Offer Y to Purchase his bike then X has to disclose all the fact and related thing like price, color etc.
- Offer could be revoked
Refer to the section 8 of the NCA 2056
- Offer is terminated in certain situation ( Refer section 9 of NCA 2056)
- By the death or insanity of offeror
- Lapse of time
- Alteration of term of offer ( Cross offer)
- Subsequent illegality
- Death or insanity of offeree
- If offer is revoked as per section 8 of NCA 2056 etc.
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