Difference between General Offer and Specific Offer
General Offer | Specific Offer |
General Offer is made to the whole world at large. | A specific Offer is made to some specific person. |
A general offer can be considered by any person. | A specific offer can be accepted by only a specific person. |
Cross offer
Two parties make a cross-offer under certain circumstances. It means that both make the same offer at the exact time to each other. However, in either case, the cross-offer will not amount to accepting the offer.
Example
‘A’ and ‘B’ both send letters to each other offering to sell and buy B’s house at the same time. This is the cross offer made where one party needs to accept the offer of another.
Counter-offer
A counter-offer is an answer given to an initial offer. A counter-offer means that the original offer has been refused and replaced by another. The counteroffer offers three choices to the original offerer; accept, refuse, or make another offer.
Lapses and revocation of an offer
· An offer lapses after a defined or reasonable time.
· An offer lapse by not being accepted in the specified mode
· An offer lapses by rejection.
· An offer lapses by the offeror or the offeror’s death or insanity until acceptance.
· An offer lapses by revocation before acceptance.
· An offer lapses by subsequent illegality or destruction of the subject matter.
When communication is complete
· Communication of offer (section 4)
The communication of the offer is complete when it comes to the knowledge of the person to whom it is made.
Time of revocation of an offer
· Revocation of the offer (Section 4)
A proposal can be revoked at any time before the communication of its acceptance is complete as against the proposer but not afterward.
Revocation of the offer by the offeror
The offeror can withdraw his offer before it is accepted “the bidder can withdraw (revoke) his offer at an auction sale before being accepted by any auctioneer using any of the customary methods.
Example
‘A’ agreed to sell the property to ‘B’ by a written document which stated “this offer to be left over until Friday 9 AM”. on Thursday ‘A’ made a contract to sell the property to ‘C’. ‘B’ heard of this from ‘X’ and on Friday 7 AM he delivered to ‘A’ acceptance of his offer. Held ‘B’ could not accept A’s offer after he knew it had been revoked by the sale of the property to C.
The Indian Contract Act 1872 defines acceptance in Section 2 (b) as “When the person to whom the proposal is made signifies his assent thereto, the offer is said to be accepted. Thus the proposal when accepted becomes a promise.” An offer can be revoked before it is accepted.
As specified in the definition, if the offer is accepted unconditionally by the offeree to whom the request is made, it will amount to acceptance. When the offer is accepted it becomes a promise.
‘A’ offer to buy B’s house for rupees 40 lacs and ‘B’ accepts such an offer. Now, it has become a promise.
When an offer is accepted and it becomes promise it also becomes irrevocable. No legal obligation created by an offer.