Proposal or Offer
The words proposal and offer are synonymous and are used interchangeably.
When one person signifies to another his willingness to do or to abstinence, from doing anything, with a view to obtaining the assent of that other for such act or abstinence, he is said to make a proposal.

Explanation: This definition reveals the following 3 essentials of a proposal:

1. It must be an expression of the willingness to do or to abstain from doing something.
2. The expression of the willingness to do or abstain from doing something must be to another person. There cannot be a proposal by a person to himself.
3. The expression of the willingness to do or abstain from doing something must be made with a view to obtaining the assent of the other person to such act or abstinence.

Illustrations:

1. A casual enquiry:
   Do you intend to sell your motorbike? is not a proposal.
    
2. A mere statement:
   l may sell my motorbike if l can get Rs. 4,000 for it is not a proposal.
    
3. Nitin says to Manoj, Will you buy my motorbike for Rs. 4,000 or l am willing to sell my motorbike to you for Rs. 4,000, we have a proposal as it has been made with the object of obtaining the assent of Manoj.

Note:
The person making the offer or proposal is called offeror, the person to whom the offer is made is called offeree and the person accepting the offer is called acceptor.
An offer is an expression of willingness to contract on certain terms, made with the intention that it shall become binding as soon as it is accepted by the person to whom it is addressed, the offeree.

Essentials of a Valid Offer

1. An offer may be express or implied
2. An offer must contemplate to give rise to legal consequences and be capable of creating legal relations
3. The terms of the offer must be certain, definite i.e. not loose or vague
4. An invitation to make an offer is not an offer
5. An offer may be general or specific
6. An offer must be communicated to the offeree
7. An offer should not contain a term the nonconformity of which would amount to acceptance
8. An offer can be made subject to any terms and conditions
9. Two identical cross offers do not make a contract
10. The answer to a question is not an offer
11. The terms and conditions of the offer must not be misrepresented to the offeree.

A valid offer must conform with the following rules:

1. An offer may be express or implied
   An offer may be made either by words or conduct. An offer that is expressed by words, spoken or written is called an express offer and the one which is inferred from the conduct of a person or the circumstances of the case are called an implied offer.
   
   Illustrations:
   
   • Mintu says to Nivesh that he will sell his cycle to him for Rs. 14,000. This is an express offer
   • Xavier writes to Yogesh that he offers to sell his house to him for Rs. 8,00,000. This is an express offer
   • The Rajasthan Transport Corporation runs buses on different routes to carry passengers at the scheduled fares. This is an implied offer by the corporation
   • A shoeshiner starts shining passenger shoes without being asked to do so in such circumstances that any reasonable man could guess that he expects to be paid for this, he makes an implied offer.
      
2. An offer must contemplate to give rise to legal consequences and be capable of creating legal relations
   If the offer does not intend to give rise to legal consequences, it is not a valid offer in the eyes of law.
   
   Note: In social agreements or domestic arrangements the presumption is that the parties do not intend legal consequences to follow the breach of the agreement. But in the case of agreements regulating business transactions, the presumption is just the other way. In business agreements, it is presumed that parties intend legal consequences to follow.
   
   Illustrations:
   
   • An offer to a friend to dine at the offeror's place, or
   • An offer to one's wife to show her a movie is not a valid offer because such agreements cannot give rise to a binding agreement, even though it is accepted and there is a consideration.
      
3. The terms of the offer must be certain, definite i.e. not loose or vague
   If the terms of the offer are not definite and certain, it does not amount to a lawful offer. Thus, unless all the material terms of the contract are agreed there is no binding obligation. Thus, an agreement to agree in future is not a contract, because the terms of the agreement are uncertain as they are yet to be settled.
   
   Illustrations:
   
   • Anil purchased a horse from Yogita and promised to buy another if the first one proves lucky. Anil refused to buy the second horse. Yogita cannot enforce the agreement it being loose and vague.
   • A offers to B lavish entertainment, if B does a particular work for him. A's offer does not amount to a lawful offer being vague and uncertain.
   
   Note: If the terms of the offer are capable of being certain, the offer is not regarded as vague.
   
   Illustrations:
   
   • Amar a dealer of coconut oil offers to sell to Akbar(a regular customer) 100 tons of oil. Here, the offer cannot be said uncertainly because it is not clear what price is said to be paid for the oil because is such an offer is accepted by Akbar, Akbar has to pay a reasonable price.
      
4. Offer and Invitation to Treat:
   An offer is the final expression of willingness by the offeror to be bound by his offer, should the other party choose to accept it. When a man advertises that he has got a stock of books to sell, without expressing his final willingness, he offers to negotiateoffer to receive offersoffers to chaffer[1]. He does not make an offer, but only invites the other party to make an offer on those terms.
   
   The Privy Council in Harvey v Facey[2] has explained the distinction. The plaintiffs telegraphed to the defendants, writing; "Will you sell us Bumper Hall Pen? Telegraph lowest cash price". The defendants replied, also by a telegram: "Lowest price for Bumper Hall Pen, Pound". The plaintiffs immediately sent their last telegram stating: "We agree to buy Bumper Hall Pen for Pound asked by you."
   
   The defendants, however, refused to sell the plot of land at that price.
   In their first telegram, the plaintiffs had asked two questions, first, as to the willingness to sell and, second, as to the lowest price, the defendants answered only the second.
   "Mere statement of the lowest price at which the vendor would sell contains no implied contract to sell at that price to the person inquiring." [3]
   
   But let us say, in response to a proposal to purchase, a higher price along with some advance was asked; then proposer's acceptance, along with an advance payment amounted to a contract.
   
   A Development Authority announced making an allotment of plots on a first come first served basis on payment of full consideration. An application in response to this made with full consideration was held to be an offer and, therefore, there could be no concluded contract till the offer was accepted[4].
   
   
   • Catalogues and display of goods:
     "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 T accept your offer. [5]
     
     In a bookshop T wants to buy this book' and the shopkeeper says 'yes'. That would not prevent the shopkeeper, seeing the book picked up, saying, 'I am sorry I cannot let you have that book; it is the only copy I have got and I have already promised it to another customer.' It is an offer by the customer to buy, and there is no sale effected until the buyer's offer to buy is accepted by the acceptance of the price. [6]
     
      
   • Announcement to hold an auction
     An auctioneer's announcement that specified goods will be sold by auction on a certain day is not an offer to hold the auction and he will not be liable to persons travelling up to the place if he changes his mind and does not hold the auction. It does not matter for this purpose that the auction was held by the Government.[7] Indication of reserve price is neither a proposal to sell at that price nor it is a valuation of the property.[8] Even when an auction is held, the bid is not an acceptance to entitle the highest bidder to get the goods. The highest bid is nothing more than an offer to buy and it requires to be accepted by the auctioneer.[9]
     
     A government contract is like any other contract between private parties and only those remedies are available for its breach as in other cases. Remedy by way of the writ is not available for enforcing government contracts.[10]
     
     The Supreme Court also gave this latitude to the Government, as is enjoyed by a private auctioneer, that it may even ignore the highest bid and accept a lower bid. The highest bidder cannot compel authorities to enter into a contract with him. The authorities may decide not to go further with the matter[11] it may be found to be an undesirable person for many reasons, for example, from the mere enormity of the bid.[12] However, one contractor should not be preferred over another without any rhyme or reason, this would be more so in the matter of Government contracts. Where out of the participating bidders or tenderers, anyone is called to revise his figure, and equal opportunity should be given to the highest bidder or the lowest tenderer,[13] provided there is otherwise nothing against him. Fixation of the reserve price in an invitation for submission of tenders has been held to be not an offer.[14]
      
   • Tenders
     An invitation for tenders for the supply of goods or the execution of works is not an offer. It is a mere attempt to ascertain whether an offer can be obtained within such a margin as the employer is willing to adopt; it is an offer to negotiate, an offer to receive offers[15] even where the reserve price is fixed[16] The actual tender is the offer, and if accepted, it becomes a binding contract.
      
   • Transactions by machine
     Different considerations apply where the transaction is effected through a machine[17] as to where the display is on a vending machine or where, as in many self-service petrol stations, the product purchased cannot easily be retrieved from the buyer's property. In such cases, the display is likely to be an offer. In Re Charge Card Services[18] an open offer to sell at pump prices was held to have been accepted by a motorist putting petrol in the tank.
      
   • Carriage of persons
     There is a diversity in the cases on the status of acts or statements about the carriage of persons. A statement in a railway timetable that a certain train will run at a certain time has been said to be an offer capable of acceptance by a passenger who goes to the station to buy a ticket[19], although regulations in effect provide that no contractual liability is to arise.
      
   • The proposal must be Certain
     The proposal must be sufficiently definite to permit the conclusion of the contract by mere acceptance.[20] Since a contract is concluded by the mere acceptance of an offer, the terms of the intended or proposed agreement must be indicated with sufficient definiteness in the offer itself. The terms of the offer must therefore be definite and certain. This does not mean that every term may be stated. Sometimes even essential terms may be left out; but if these can be determined or supplied by interpreting the agreement, or with reference to usages, previous conduct or practices, or implied terms, the offer would be adequately definite.
     
     A proposal is certain if, under the general rules of construction or otherwise, the intention of the parties can be ascertained, and if it can be rendered certain, as by reference to something certain. A proposal is not less certain if it is conditional, provided there is no element of uncertainty about it, or in its terms.[21] An offer for purchase lacking specification of quantity required was vague and would not carry a contractual relationship.[22] A statement seeking advance payment without any particulars of the thing offered,[23] or stating that the person is prepared to purchase the property for a "reasonable sum",[24] are not proposals.
     
     A tender that did not specify the amount of money offered was not certain and could not be acted upon.[25] A contract for the renewal of agreement by mutual consent does not create any obligation or rights in either party for the renewal of the agreement.[26] A term of the proposal signifies a condition without the fulfilment of which the offeror is not willing to undertake the obligation. Whether a particular condition amounts to a term depends on the intention of the proposer. When an offer is conditional, the offeree has the choice of either accepting the conditional offer, or rejecting the conditional offer, or making a counter-offer. But what the offeree cannot do, when an offer is conditional, is to accept a part of the offer which results in performance by the offeror and then reject the condition subject to which the offer is made.[27] Some conditions of the offer may be essential, others ancillary. Where the acceptor accepts the essential conditions but does not accept the ancillary conditions strictly, a contract is nevertheless concluded.
      
5. An offer may be general or specific
    General Offers:
   The modern position of general offers is that an offer may be made to the world at large but contract is made only with that person who comes forward and performs the conditions of the proposal.
   
   The reason I mentioned the modern position is:
   In Weeks v Tybald[28] the defendant affirms to the public that he would give Pound 100 if one marries his daughter with his consent. The plaintiff did so and in non-compliance with the offer he sued the defendant. The court meant that if an offer of this kind addressed to several persons could be accepted, the offeror would find him bound in innumerable contracts. This ratio, however, was soon overruled.
   
   An offer need not be made to an ascertained person, but no contract can arise until it has been accepted by an ascertained person.[29]
   
   A soap company offers a reward to any person who finds a slip of victory in their soap. X finds and returns it back, he is entitled to a reward.
   
   Acceptance by performing conditions, or receiving consideration:
   Performance of the conditions of a proposal, or the acceptance of any consideration for a reciprocal promise which may be offered with a proposal, is an acceptance of the proposal.[30]
   
   Since notification of acceptance is required for the benefit of the person who makes the offer and if he expressly or implicitly indicates in his offer that acting on the proposal without communicating acceptance to himself will suffice, performance of the condition is sufficient acceptance without notification.
   
   An offer of an incentive for rendering certain services made by way of an ad campaign to the general public creates a power of acceptance in everyone to whom it is made or becomes known, but the contractual obligation to pay only exists when a person performs the mandated services, not before.[31]
   
   In Har Bhajan Lai vs Har Charan LaF[32]:
   A young boy ran away from his father's home. The father eventually issued a pamphlet, offering a reward in these terms:
   Anybody who finds a trace of the boy and brings him home will get Rs 500/-.
   
   The plaintiff helped the son reaching his father. It was held that the handbill was an offer open to the whole world and capable of acceptance by any person who fulfilled the condition, and that the plaintiff substantially performed the condition and was entitled to the amount offered.
   
   The court will not expect anyone to sit down and write a note saying that they have accepted the proposal. [33]
   
   When an offer is accepted in reward for information or the return of a lost object, the offer is exhausted. The offeror does not plan to pay many times for the same event. So, where a reward is given for information and the information requested reaches the offeror from a variety of sources, it has been held that the individual who provided the earlier information is the person who should get the award.[34]
   
   In Carlill v Carbolic Smoke Ball Co (Smoke Ball case)[35]
   
   The defendant company offered by advertisement to pay Pound 100 to anyone who contracts the increasing epidemic influenza colds, or any disease caused by taking cold, after having used the ball three times daily for two weeks, according to the printed direction.' It was added that Pound 1000 is deposited with the Alliance Bank �showing our sincerity in the matter.
   
   The plaintiff, Mrs Carlil used the smoke balls according to the directions but she nevertheless subsequently suffered from influenza. She was held entitled to recover the promised reward. It was contended by the defendants that there was no intention to enter into legal relations, as it was simply a puffing advertisement and the offer, cannot be made to the world at large; that the offer was not made to any one person in particular and that the plaintiff had not communicated her intention to accept. Bowen LJ said:
   
   "Why should not an offer be made to the entire world which is to ripen into a contract with anybody who comes forward and performs the condition? It is an offer to become liable to anyone who, before it is retracted, performs the conditions, and although the offer is made to the world, the contract is made with that limited portion of the public who come forward and perform the condition on the faith of the advertisement."
   
   "Was it intended that the Pound 100 should if the conditions were fulfilled, be paid? The advertisement says that Pound 1000 is lodged at the bank for the purpose. Therefore, it cannot be said that the statement that Pound100 would be paid was intended to be a mere puff."
   
   An offer is said to be specific when it is made to a definite person or persons. Such an offer can be accepted only by the person or persons to whom it is made.
   
   Illustrations:
   • Where if A makes an offer to N to sell his bicycle for Rs. 200, there is a specific offer and N alone can accept it.
   • On the other hand, an offer which is made to the world at large or public in general and maybe accepted by any person who fulfils the requisite conditions.
   Case Law
   In the Carbolic Smoke Ball Co. case, the company issued an advertisement in which the company offered to pay a dollar 100 to any person who contracts influenza, after having used their Smoke Balls 3 times daily for 2 weeks, according to the printed directions. Mrs Carlill, on the faith of the advertisement, bought and used the Balls according to the directions, but nevertheless subsequently suffered from influenza. She sued the company for the promised reward. The company was held liable.
   
   Note: If a large no. of persons accepted a general offer, there would be an equal no. of separate contracts.
    
6. An offer must be communicated to the offeree
   An offer is effective only when it is communicated to the offeree. Until the offer is made known to the offeree, there can be no acceptance and no contract.
   
   Case Law
   In Lalman Shukla v. Gauri Datt, the defendant's nephew absconded from home. He sent his servant, the plaintiff, in search of the boy. After the servant had left, the defendant announced the reward of Rs. 501 to anybody giving information relating to the boy. The servant, before seeing the announcement, had traced the boy and informed the defendant. Later, on reading the notice of reward, the servant claimed it. His suit was dismissed on the ground that he could not accept the offer unless he knew of it.
   
   Illustration:
   Ashok, without knowing that a reward has been offered for the arrest of a particular criminal, catches the criminal and gives the information to the superintendent of police. Ashok cannot recover the reward as he cannot be said to have accepted the offer when he was not at all aware of it.
    
7. Offeror must communicate the special terms
   Regarding the communication of the special terms of the contract as contained in a ticket, receipt or standard form documents, the more imp. rules are as follows:
   
   • If the acceptor or the promisee did not know special terms, before or at the time of the contract, they are not binding upon the acceptor.
     
     Case Law
     In Handerson v. Steveson, the plaintiff bought a steamer ticket, which bore on its face the words. Dubin to Whitehaven. On the back of the tickets, certain special terms were printed one of which excluded the liability of the company for loss, injury or delay to the passenger or his luggage. The plaintiff never looked at the back of the ticket and no one told him to do so, and the front of the ticket bore no reference to the back. The plaintiff's luggage was lost in the shipwreck caused by the fault of the company's servants. He claimed damages for its loss. It was held that the plaintiff was entitled to recover his loss from the company as there was no sufficient communication of the terms and conditions contained on the back of the ticket.
      
   • If the acceptor or the promise knew or may be presumed to have knowledge of the special terms, before or at the time of the contract, because a reasonably sufficient notice has been given to him by suitable words on the document; the terms are binding upon the acceptor whether he has read them or not is immaterial.
     
     Case
     In Parker v. South-Eastern Co., P deposited his bag at the cloakroom of a railway station and received a ticket containing on its face the words, see back. On the back of the ticket there was a condition the company will not be responsible for any package exceeding the value of dollar 10 unless the extra charge was paid. Notice to the same effect was hung up in the cloakroom. P's bag was lost and he claimed the actual value of the lost bag, dollar24, admitted knowledge of the printed matter on the ticket but denied having read it. It was held that, even though he had not read the exemption clause, he was bound by it, as the defendants had done what was reasonably sufficient to give him notice of its existence, and therefore P was not entitled to recover.
      
   • Again where the terms are printed in a language that the acceptor does not understand, he cannot set up this fact as a reason for not being bound by the terms, but his attention should be drawn to them by suitable words on the document. It is the acceptor's duty to ask for a translation of the terms before he actually accepts the offer and if he did not ask, he must suffer for his ignorance.
      
   • Similarly, the acceptor cannot plead that he was illiterate or blind, provided the notice is reasonably sufficient for the class of persons to which he belongs.
      
   • It is important to note that special terms and conditions become binding as part of the contract only if they are brought to the notice of the acceptor before or at the time of the contract. A subsequent communication will not bind the contracting parties unless he has assented thereto.
     
     Case
     In Olley v. Marlborough Court Ltd., Olley and her husband hired a room at a hotel and paid for a week's board and lodging in advance. When they went to occupy the room there was a notice on one of the walls that contained the clause: �The proprietors will not hold themselves responsible for the articles lost or stolen, unless handed to the manageress for safe custody'. Owing to the negligence of the hotel staff, a thief entered the room and stolen some of their property. The owner of the hotel was held liable since the notice formed no part of the contract as it came to the knowledge of the plaintiff after the contract had been entered into.
      
8. An offer should not contain a term the nonconformity of which would amount to acceptance
   An offeror cannot say that if acceptance were not communicated up to a certain date, the offer would be presumed to have been accepted. If the offeree does not reply, there is no contract because no obligation to reply can be imposed on him.
    
9. An offer can be made subject to any terms and conditions
   As offeror may attach any terms and conditions to the offer he makes. He may even prescribe the mode of acceptance. The offeree will have to accept the terms of the offer. There is no contract unless all the terms of the offer are complied with and accepted in the mode prescribed.
   
   Explanation: If the offeror asks for sending the acceptance by telegram and the offeree sends the acceptance by normal post , the offeror may decline to treat that acceptance as valid acceptance except he gives notice to that effect to the offeree within a reasonable time after the acceptance is communicated to him. If he does not inform the offeree as to this effect, he is deemed to have accepted the deviated acceptance.
    
10. Two identical cross offers do not make a contract
    When 2 parties make identical offers to each other, in ignorance of each other's offeror due to no knowledge of each other's offer, the offers are called �cross offers. Cross-offers do not constitute acceptance of one's offer by the other and as such there is no completed agreement.
    
    Illustration:
    
    • On 11 April 1980 Amit wrote Balu offering to sell him his house at Rs. 8,00,000. On the same day, Balu wrote Amit to buy his house at Rs. 8,00,000. The emails crossed in the post. There is no concluded contract between Amit and Balu because the offers were simultaneous, each being made in ignorance of the other, and there is no acceptance of each other.
       
11. The answer to a question is not an offer
    The terms of an offer should be clear so that there is no confusion whether it is a valid offer or an answer to a question. An answer to a question cannot be taken as an offer.
    
    Illustration
    
    • A sends a telegram to B �Will you sell your Bumper Hall?' Telegraph lowest cash price. B telegraphed the lowest price as Rs. 1 crore. A sends the telegram stating �I agree on the hall for Rs.1 crore. Please send your details.' B refused to sell the hall at that price. A bought a legal action against B. the court held that B did not make any offer to sell the hall at that price, ha simply answered the question asked by A. thus, he had made no offer.
       
12. The terms and conditions of the offer must not be misrepresented to the offeree
    The offeree must be given and made understood all the terms and conditions clearly without ambiguity and the terms must be legible.
    
    Illustration:
    A lady went to the dry cleaner to dry clean her bridal dress. The dry cleaner made her sign on a receipt stating that the receipt bears no responsibility to the dry cleaner for discolouration of beads and threads. Later, when the dress was returned there was a spot on it. She sued the dry cleaner. The dry cleaner stated that he is not liable because the lady signed on the receipt, which exempts him from any liability. The court held that the misrepresented offer was made to the lady hence the dry cleaner has to compensate the lady.
     

When does an offer come to an end?
An offer lapse and is invalid i.e. comes to an end in the following circumstances:

1. An offer lapses after a stipulated or reasonable time
   An offer lapses if acceptance is not communicated within the time prescribed in the offer, or if no time is prescribed, within a reasonable time.
   What is a reasonable time is a question of fact depending upon the circumstances of each case.
   
   Illustration:
   An offer made by telegram suggests that a reply is required urgently and if the offeree delays the communication his acceptance even by a day or two, the offer will be considered to have lapsed.
    
2. An offer lapses by not being accepted in the mode prescribed
   An offer lapses by not being accepted in the mode prescribed, or if no mode is prescribed, in some usual and reasonable manner
   If the offeree doesn't accept the offer acc. to the mode prescribed, the offer doesn't lapse automatically. It is for the offeror to insist that his proposal shall be accepted only in the prescribed manner, and if he fails to do so he is deemed to have accepted the acceptance done in any other mode which otherwise reasonable.
    
3. An offer lapses by rejection
   An offer lapses if the offeree has rejected it. The rejection may be expressed i.e. by words spoken or written, or implied.
   
   Implied rejection is:
   
   1. Where either the offeree makes a counteroffer, or
      When an offeree offers to accept the offer of the offeror, subject to some modification, the offer of the offeree is called a counteroffer. It also amounts to implied rejection of the original offer.
       
   2. Where the offeree gives a conditional acceptance
      When an offeree offers to accept the offer of the offeror, subject to some more new conditions, the offer of the offeree is called conditional acceptance. It also amounts to implied rejection of the original offer.
   Illustration:
   
   • Anu asks to sell her house to Bitu for Rs. 9,00,000. Bitu offered Rs. 8,00,000 for which price Anu refused to sell. Subsequently, Bitu offered to purchase the house for Rs. 9,00,000. Anu declined to continue to his original offer. Bitu filed a case to obtain specific performance of the alleged contract. The court dismissed the case and held that Anu was justified because no contract had come into existence, as Bitu, by offering Rs. 8,00,000. Had rejected the original offer. Subsequent willingness to pay Rs. 9,00,000 could be no acceptance of Anu's offer as there was no offer to accept. The original offer had already come to an end on account of a counter offer.
      
   • Anmol offered to sell his car to Bhanu for Rs. 1,25,000. Bhanu said that he accepted the offer if he was appointed as General Manager of Anmol's factory. Bhanu's acceptance is conditional acceptance which amounts to a rejection of Anmol's offer and there is no contract.
     
     Case
     In Hyde v. Wrench, to sell an estate at a certain price, the plaintiff made an offer to buy at a lower price. This offer was refused and subsequently, the plaintiff sought to accept the initial offer. It was held that no contract was made as the initial offer didn't exist at the time that the plaintiff tried to accept it, the offer having been revoked by the counter offer.
     
     Explanation: It is worth noting that rejection is effective only when it comes to the knowledge of the offeror.
     
     Illustration: C makes an offer to D by letter. Immediately upon receiving the letter, D writes a letter rejecting the offer. Before the rejection reaches C, D changes his mind and telephones his acceptance. There would be a contract between C and D and the rejection shall not be effective.
     
     Note: The counteroffer results in a new offer that may be accepted or rejected by the other party (original offeror). If the other party accepts it, the contract is said to be concluded.
      
4. An offer lapses by the death or insanity of the offeror or the offeree before acceptance
   
   • Death of offeror: if the offeror dies or becomes insane before acceptance, the offer lapses provided that the fact of his death or insanity comes to the knowledge of the acceptor before acceptance.
     
     Note: Thus if the offer is accepted in ignorance of the fact of the death or insanity of the offeror, the acceptance is valid. This will result in a valid contract and legal representatives of the deceased offeror shall be bound by the contract, provided the nature of the contract is such that the legal representatives can be held liable.
      
   • Death of offeree: An offeree's death or insanity before accepting the offer puts an end to the offer and his heirs cannot accept him.
      
5. An offer lapses by the revocation
   An offer is revoked when it is withdrawn by the offeree. An offer may be revoked, at any time before acceptance, by the communication of notice of revocation by the offeror to the other party.
    
6. An offer lapses by subsequent illegality or destruction of subject matter
   An offer stands revoked if the offeree fails to fulfil a condition precedent to acceptance.
   Illustration:
   A offers to sell his mobile to R, for Rs. 4,000, if R joins the Lions Club within a week, the offer stands revoked and cannot be accepted by R if R fails to join the Lions Club.
    
7. An offer lapses by subsequent illegality or destruction of subject matter
   An offer lapses if it becomes illegal after it is made, and before is accepted. In the same manner, an offer may lapse if the thing, which is the subject matter of the offer is destroyed or substantially impaired before acceptance.
   
   Illustration:
   An offer is made to sell 10 grams cocaine for Rs. 1,600 by Zaved to Salman and before it is accepted, a law prohibiting the sale of cocaine by private individuals is enacted; the offer comes to an end.

End-Notes:

1. Carlill v Carbolic SmokeBall Co [1893] 1 QB256 (CA)
2. 1893 AC 552
3. Harvey v Facey [1893] AC 552
4. Byomkesh Banerjee v Nani Gopal Banik [1987] AIR 1987 Cal 92
5. Pharmaceutical Society of Great Britain vs Boots Cash Chemists Southern Ltd [1952] 2 QB 795 at p. 802, (Laws Lord Goddard CJ)
6. ibid State Aided Bank of Travancore Ltd v Dhirt Ram [1942] AIR 1942 PC 6
7. Union of India v Gangadharan Mohandas [1997] 2 Cal LJ 221
8. Anil Kumar Srivastava v State of U.P. [2004] 8 SCC 671
9. Spencer v Harding [1870] 5 CP 561: 39 LJCP 332: 23 LJ 237
10. State of U.P. v Bridge and Roof Co (India) Ltd [1996] 6 SCC 22: AIR 1996 SC 3515
11. Gajendra Singh v Nagarpalika Nigam AIR 1996 MP 10
12. State of U.P. v Vijay Bahadur Singh [1982] 2 SCC 365
13. Desai & Co v Hindustan Petroleum Co [1984] Guj LH 864
14. Anil Kumar Srivastava v State of U.P. [2004] 8 SCC 671
15. SP Consolidated Engineering Co Pvt Ltd v UOI, AIR 1966 Cal 259
16. Anil Kumar Srivastava v State of Uttar Pradesh, (2004) 8 SCC 671 : AIR 2004 SC 4299
17. Thornton v Shoe Lane Parking Ltd [1971] 2 QB 163, 169
18. [1989] Ch 497, 512. See also Chapelton v Barry UDC [1940] 1 KB 532
19. Denton v Great Northern Railway Co (1856) 5 E & B 860 (Lord Campbell CJ and Wightman J; Crompton J dissenting)
20. Coffee Board Bangalore v Janab Dada Haji Ibrahim Halari, AIR 1966 Kant. 118
21. Pipraich Sugar Mills Ltd v Pipraich Sugar Mills Mazdoor Union, AIR 1957 SC 95 at 102
22. Coffee Board Bangalore v Janab Dada Haji Ibrahim Halari, AIR 1966 Mys 118
23. Ratan Lal Gattani v Harcharan Lal, AIR 1947 All 337
24. KS Thangal v State of Kerala, AIR 1968 Ker. 197
25. Gorakh Nand Yadav v District Magistrate, Gorakhpur, AIR 1992 All 340
26. BDA Ltd v State of Uttar Pradesh, AIR 1995 All 277
27. Food Corp of India v Ram Kesh Yadav, (2007) 9 SCC 531
28. 1605 Noy 11; 74 ER 982.
29. A proposal not addressed to one or more specific person is presumptively merely an invitation to treat under the Convention on the International Sale of Goods (CISG) art 14(2) but presumptively an offer under the Italian Civil Code, art 1336 (1) and by judicial decision in French law: Nicolas, The French Law of Contract (2nd edn, 1992) 63-4.
    [30] Section 8 of the Contract Act.
30. New Zealand Shipping Co. Ltd. v. A. M. Satterthwaite & Co. Ltd [1975] AC 154, 168.
31. AIR 1925 All 539.
32. At pp. 269-70 of Carlill v Carbolic Smoke Ball Co, (1893) 1 QB 256 (CA).
33. Lancaster v Walsh (1838) 4 M & W 16.
34. (1893) 1 QB 256 (CA).

Written By: Manav Kothary - United World School of Law
Email: [email protected], Ph no: 6378311502, Linkedin

Bio:
Being a first-year law student at Karnavati University (United World School of Law), I am a novitiate who is striving to fix my correspondence, policy, legal, and analytical abilities. Every accomplishment, in my opinion, is a sign of honing up one's ability rather than becoming a complacent expert. I am an oriented, self-assured and ambitious Legal frosh with firm convictions, having a zeal for honn�tet� commitments and briguer for justice.