Business Law

Promise

Part 1: Proposal/Offer

Lecture 3

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Lecture 3
 Promise

Proposal + Acceptance

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Lecture 3
 Proposal/Offer
S. 2(a) of the Contract Act, 1872

 “When one person signifies to another his willingness

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.”

AIR 1951 ALL 93

 Offer is a declaration by the proposer of his intention to be
bound by an obligation if the offeree fulfills or undertakes
to fulfill certain conditions.

Rizwan Hussain|UCPLC|Contract Law|

Lecture 3
 Ingredients of Proposal

An expression of the offeror’s willingness

To do or abstain from doing something

With a view to obtain assent of other

Rizwan Hussain|UCPLC|Contract Law|

Lecture 3
Clear Terms/Requirement

A Proposal to be valid must be made in clear

terms

AIR 1947 ALL 337

An offer which does not contain any particular as to the
thing offered does not constitute a proposal.

A proposal must not be ambiguous

Non-Compliance not to amount as a Contract

Rizwan Hussain|UCPLC|Contract Law|

Lecture 3
 Types of Offer

Specific Offer

General Offer

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Lecture 3
Case Study- General Offer

Carlill v. Carbolic Smoke Ball Co.

Advertisement promising not catching
influenza after using the smoke balls
Deposit of 1000 pounds with the bank
showing sincerity with the matter
Lady used the balls but caught influenza
Court held entitled to reward of 1000 pounds
considering it acceptance of a general offer.

Rizwan Hussain|UCPLC|Contract Law|

Lecture 3
 Invitation to Treat/Invitation to
make Proposal

Catalogues

Display of goods

Announcement to hold auction, etc

Rizwan Hussain|UCPLC|Contract Law|

Lecture 3
 Case Study- Display of
goods
Pharmaceutical Society of Great
Britain v. Boots
Lord Goodard CJ said, “ It would be wrong to
say that the shopkeeper is making an offer to
sell every article in the shop to any person
who might come in and that person can insist
on buying any article by saying ‘I accept your
offer’.
Customer makes the offer to buy and the
shopkeeper has the right to accept or reject

Rizwan Hussain|UCPLC|Contract Law|

Lecture 3
 Essential Readings

Chapter No. 1 , Law of Contract by Avtar

Singh

Commentary on Relevant Provisions, The

Contract Act by Pollock and Mullah

Consult other recommended Text Books

Rizwan Hussain|UCPLC|Contract Law|

Lecture 3
 Ends

Rizwan Hussain|UCPLC|Contract Law|

Lecture 3