Define an offer. Explain the essentials of a valid offer. How an offer is different from an invitation to offer?

Definition: The word Proposal and offer are used interchangeably and it is defined under Section 2(a) of the Indian Contract Act, 1872 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. Essentials: The following are important essentials of an offer: - • Must be capable of creating legal relation. • Must be certain, definite and not vague. • Must be communicated. • Must be made with a view to obtaining the assent of the other party • May be conditional • Offer should not contain a term the non compliance of which would amount to acceptance • May be general or specific • May be expressed or implied • A statement of price is not an offer Offer and an Invitation to an offer: In terms of Section 2(a) of the Act, an offer is the final expression of willingness by the offeror to be bound by the offer should the other party chooses to accept it. On the other hand, offers made with the intention to negotiate or offers to receive offers are known as invitation to offer. Thus, where a party without expressing his final willingness proposes certain terms on which he is willing to negotiate he does not make an offer, but only invites the other party to make an offer on those terms. Hence, the only thing that is required is the willingness of the offeree to abide by the terms of offer.