Business

How is an offer to be communicated?

How is an offer to be communicated?

An offer may be communicated to the offeree or offerees by word of mouth, by writing or by conduct. A Written offer may be contained in a letter or a telegram. A circular or advertisement or a notice may be written in such a language that it amounts to an offer. A tramway car and a bus going along a street and picking up passengers are examples of offers by conduct. But if the offer is not communicated to the person to whom it is intended to be made, there can be no acquiescence.

Section-4 (Indian contract act) states: “The communication of a proposal is complete when it comes to the knowledge of the person to whom it is made.” So when the offeree (in case of a specific offer) or any member of the public (in case of a general offer) becomes aware of the offer, the communication of the offer is said to be complete.

The offer is the first part of a contract. The person who makes the offer is called the offeror and the person to whom the offer is made is called the offeror. For example, a common question is whether there was a valid offer. If there is no offer, there can be no contract. Offers at common law required three elements: communication, commitment and definite terms Effective communication of the offer and a clear understanding of it is important to avoid misunderstanding between all the parties.