Cross Offer/ Counter Offer-
Dr. Tanmoy Mukherji
Advocate
Cross Offer/ Counter Offer-
Tanmoy Mukherji
Advocate
Cross Offer-
A cross offer occurs when two parties make the same offer to each other, in ignorance of each other’s offer.
There is no acceptance, only two identical offers. Therefore, no contract is formed.
Example:
-A writes to B offering to sell his car for ?2,00,000.
-On the same day, B writes to A offering to buy A’s car for ?2,00,000.
-Both letters cross in post. Here, both made identical offers, but neither accepted the other’s offer.
Effects-
No contract.
Reference Case
Counter Offer-
A counter offer is when the offeree does not accept the original offer and instead proposes new terms.
Effect:
It rejects the original offer.
The original offer cannot be accepted later unless renewed.
Example:
-A offers to sell his house to B for ?50 lakh.
-B replies: “I will buy it for ?45 lakh.”
Difference Between Cross Offer and Counter Offer-
|
Basis |
Cross Offer
|
Counter Offer
|
|
Meaning
|
Same offers made by both parties.
|
New offer in response to original offer.
|
|
Acceptance
|
No acceptance.
|
Original offer rejected.
|
|
Contract
|
No contract.
|
No contract unless new offer accepted
|
|
Reference Case
|
Tinn v. Hoffman
|
Hyde v. Wrench
|
-This is a counter offer.
-A’s original offer of ?50 lakh is now rejected.
Reference Case-
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