Question

Under the Indian Contract Act, 1872, unless a contrary intention appears from the context, 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. An offer
• B. A proposal
• C. A contract
• D. A proposition

Hint:

An invitation to propose (or invitation to treat) is different from a proposal.
Display of goods with price tags in a shop is merely an invitation to receive proposals, not a proposal itself.

Answer 1

The Correct Option is B

Step 1: Understanding the Question:
The question asks for the exact statutory term used in the Indian Contract Act, 1872, to describe the act of signifying willingness to do or abstain from doing something to obtain another's assent.

Step 2: Key Legal Principles and Approach:
Section 2 of the Indian Contract Act, 1872, is the interpretation clause.
Section 2(a) provides the specific definition for the initial step of contract formation.

Step 3: Detailed Explanation:

• Statutory Definition: Section 2(a) of the Act states: "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."

• Proposal vs. Offer: While the term "offer" is widely used in English Common Law and general legal discourse, the Indian Contract Act officially adopts and defines the term "proposal" in its statutory framework.

• Key Elements of a Proposal: The definition consists of three essential requirements: (1) there must be an expression or signification of willingness, (2) it must be to do or abstain from doing something, and (3) it must be done with the objective of obtaining the other party's assent.

• Because the exact wording in the prompt is the verbatim definition of "proposal" under Section 2(a), the term that correctly fills the blank is "A proposal".

• Therefore, Option (B) is the correct answer.

Step 4: Final Answer:
The verbatim definition provided in the question corresponds to "A proposal" under Section 2(a) of the Indian Contract Act, 1872, making Option (B) the correct answer.