BILATERAL &
UNILATERAL
CONTRACT
Bilateral
Unilateral
all parties promise to
do something for one
another; they bind all
parties and are
enforceable against
all parties.
one party promises to
do something to
induce the second
party to do something;
they are binding on
and enforceable
against only one party,
i.e. the party that
made the promise.
S4(a): Proposals must be
communicated to the other
party to the extent that the
party accepting the proposal
is aware of the existence of
such proposal in the first
place.
- Revocation
- Rejection of offer
Invitation to treat
Section 2 (a) of the Contract
Act:
a proposal is made ‘when one
person signifies to another his
willingness to do or abstain
from doing anything, with a
view of obtaining the assent of
that other to such act of
abstinence’.
COMMUNICATION
OF PROPOSAL
- Counter offer
Offer
DEFINITION
OFFERS AND
INVITATION TO
TREAT
EXAMPLE OF
INVITATION OF
TREAT
a sort of preliminary
communication
which passes
between the parties
at the stage of
negotiation.
- a price list
- a display of goods with
price tags in a supermarket
- an advertisement
-an auctioneer inviting bids
for a particular article.
TERMINATION
OF PROPOSAL
TO WHOM
PROPOSAL CAN
BE MADE?
-particular person
-general public