A proposal, in legal terms, refers to an offer or a suggestion made with the intention of entering into a contract or agreement upon acceptance by the other party. In simpler terms, it's a formal presentation of an idea or plan for consideration.
The essentials of a valid offer are:
- Intention to Create Legal Relations: The offeror must intend to create a legally binding contract upon acceptance. If the offer is made in a social or domestic context, there might not be an intention to create legal relations.
- Definiteness and Certainty: The terms of the offer must be clear, definite, and certain. This means that the offer must specify the parties involved, the subject matter of the contract, the consideration (what is being offered in exchange), and any other essential terms.
- Communication: The offer must be communicated to the offeree. This can be done orally, in writing, or through conduct, as long as the offeree is aware of the offer and its terms.
- Expressed Intent: The offer must show an intention by the offeror to be bound by the terms of the offer. This intention can be expressed explicitly or inferred from the circumstances surrounding the offer.
- Invitation to Treat: It's important to distinguish between an offer and an invitation to treat. An invitation to treat is an invitation for others to make offers (e.g., advertisements, price lists), whereas an offer indicates a willingness to be bound by certain terms.
- Not Revoked or Lapsed: The offer must not have been revoked by the offeror or lapsed due to a specified time limit or condition. Once an offer is revoked or lapses, it cannot be accepted.
These essentials ensure that an offer is clear, definite, and made with the intention of creating a legal relationship upon acceptance.
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