Legal Rules regarding offer by CS Manpreet Singh

WHAT IS AN OFFER?
The Indian Contract Act uses the term proposal, instead of offer. However, the words proposal an offer is synonymous dare used interchangeably.
Section 2(a) of the Indian Contract Act defines a proposal as:
"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''.
The person who makes the offer is called the 'offeror' or 'promisor and the person to whom the offer is
made is called the 'offeree’ or 'promisee'. [Sec. 2(c).]
The definition of proposal has two elements:
1) It must be an expression/declaration of the willingness to do or to abstain from doing something.
For example, A says to B, will you buy my bike for 2 lakh? This is a declaration to sell the bike.
2) This declaration is made with a view to obtain the assent of the other person to such act or abstinence. Thus a casual statement that "I may sell my Maruti car if I can get two lakh for it'' is not a proposal, because this expression is not made with a view to obtain assent of the other person.
Illustration - The case of Harveyv. Facey illustrates nicely the concept of offer.
Harvey sent a telegram to Facey "Will you sell your Bumper Hall Pen? Telegraph lowest cash price". Facey
replied also by telegram, "Lowest price for Bumper Hall Pen pound 900". Harvey immediately sent second
telegram “We agree to buy Bumper Hall Pen for the sum of pound 900 asked by you". There was no reply
from Facey.
Hence, there was no concluded contract between Harvey and Facey. In the first telegram, Harvey asked two questions, first as to willingness to sell and second as to the lowest price. Facey answered only the second question and gave the lowest price. He reserved his answer to the willingness to sell.
Thus he made no offer. The second telegram sent by Harvey was an offer to buy, but that was never accepted by Facey.
Mere statement of lowest price at which the vendor would sell contains no implied promise to sell at that price to the person making the enquiry.
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