0Following are the essential elements of a valid offer:
- The offer must be communicated to the other party: The offer is completed only when it has been communicated to the offeree. Until the offer is communicated, it cannot be accepted. Thus, an offer accepted without its knowledge does not confer any legal rights on the acceptor.
Example 2.1: A's nephew had absconded from his home. He sent his servant to trace his missing nephew. When the servant had left, A then announced that anybody who discovered the missing boy would be given the reward of Rs. 500. The servant discovered the missing boy without knowing the reward. When the servant came to know about the reward, he brought an action against A to recover the same. But his action failed. It was held that the servant was not entitled to the reward because he did not know about the offer when he discovered the missing boy.
- The offer must be made with a view to obtain the consent of the offeree: When a person is making an offer it means that he is making it with a view to obtain the consent of the offeree. As soon as the offeree accepts it, the offeror is bound by it.
- The offer must have its terms definite and clear: The terms of an offer must be definite, clear and certain. If the terms of the offer are vague and uncertain, no contract will come into existence.
Example 2.2: A offered to sell to B ‘a hundred tonnes of oil’. The offer is uncertain as there is nothing to show what kind of oil is intended to be sold.
- The offer must be capable of creating legal relationship: An offer must be such that when accepted it will result in a valid contract. A mere social invitation cannot be regarded as an offer, because if such an invitation is accepted it will not give rise to any legal relationship.
Example 2.3: A invited B to a dinner and B accepted the invitation. It is a mere social invitation. And A will not be liable if he fails to provide dinner to B.
- The offer must express the final willingness of the offeror: The terms of the offer should be such that they contain final willingness of the offeror. Sometimes, a party does not express his final willingness but proposes certain terms on which he is willing to negotiate. In such cases, he is not making an offer because he is not expressing his final willingness to enter into a contract.
