TYPES OF OFFER

 

Types of Offer: offers may be classified on the basis of following:

 I. On The Basis of Mode of Making The Offer:

1. Express offer: An offer made by way of words, either spoken or written is called an express offer.     Illustration: (A)Vikas offers Vishal to sell his scooter for ₹3,000 by words when standing next to him. It is an express offer. (B)Vikas offers Vishal to sell his scooter for ₹3,000 by letter. It is also an express offer.

2. Implied offer: An offer which is made by any mode other than words is an implied offer.

Illustration: Shivkant waves his hand toward an auto and the auto driver stops the auto. Shivkant seats on it and move toward Makroniya. This is an implied offer.

 

II. On The Basis of Offerees:

1. Specific Offer: When an offer is made to a specific person or grou of persons, then it is known as a specific offer. Such an offer is made to a specific person and no one else other than him can accept the offer.

Illustration: Shubham offers to sell his mobile to Shreyansh for ₹5,000. Here the offer is made to Shreyansh and only Shreyansh can accept the offer.

2. General Offer: when an offer is made to the public at large or to the whole world, it is known as a general offer. Such an offer can be accepted by any person who has the knowledge of it. It must be remembered that general offer does not require prior acceptance. The performance of conditions of the offer amounts to acceptance.

Illustration: Mr Surendra lost his dog. He announced a reward of ₹2,000 for the person who will find his dog and return him. Here, the offer is open to the whole world, anyone who gets to know this offer can accept it. Suppose, Mr Sidhharth finds the dog and return the dog to Mr, Surendra. It will be considered that he Mr Sidhharth has accepted the offer and is entitled to get the reward.

 

III. On The Basis of Nature of Offer:

1. Cross Offer: when two parties make an identical offer (with same terms and condition) to each other, without having knowledge of each other’s offer, it is known as Cross offers.

Illustration: Vedansh offers to sell 100 kg of sugar to Siddharth by writing a letter. On the same day, Sidhharth also writes a letter to Vedansh offering to buy 100 kg of sugar. The two letter crossed each other in the post and reaches them at the same time. Vedansh brings an action and supplies 100 kg of sugar to sidhharth. He thought that a valid contract had been created with Vedansh. But actually there was no valid contract as there was no acceptance from either side and two offers only crossed each other.

2. Counter Offer: When an offer is not accepted with given terms and conditions and the offeree modifies the terms and conditions on his own. In such case, the original offer is considered rejected and a new offer is created by offeree by modifying the terms and conditions.

Illustration: Simi offered to sell her necklace to Smriti for ₹1,50,000. Smriti said that she is ready to buy the necklace, but she would pay only ₹1,00,00. Here the original offer made by Simi is rejected and a new offer has been created by Smriti i.e. She is offering Simi to sell the necklace to her for ₹1,00,00.  So, it is a counter offer.

3. Standing Offer: A standing offer is an offer which is open for a given period of time.

Illustration: in response to an invitation to offer (notice inviting tender) by the department of commerce, Lodhi enterprises agreed to supply stationery to the department of commerce as and when required for the year 2017. Such offer is known as tender. Here the tender is open for the whole year. Department of commerce could ask for supply of stationary any time during the year and every order would create a new contract. Also, the parties are free to revoke the tender anytime during the year, provided that no order is outstanding.