1. GENERAL OFFER : General offer is open to all.

Unlike specific offer which is eligible

for acceptance by a specific person, general offer is eligible for acceptance by any
person.

CASE : CARLILL V. CARBOLIC SMOKE BALLS COMPANY

In this case the Carbolic Smoke Ball Company claimed that the offer is for general
public as a paper advertisement but not a specific offer to Mrs. Carlill. But the court held
that an offer when conveyed for acceptance enforces the contract and the parties are bound
by the contract.

2. AN OFFER AND INVITATION TO OFFER :

An offer when proposed to the acceptor should be accepted unconditionally. It is called

Consensus-ad-idem. If the offer so proposed is not accepted then there cannot be any
contract.

On the other hand an invitation to offer is not an offer at all but a mere intention of the
party.

CASE : HARVEY V. FACEY

In this case, the petitioner, Harvey communicated with the defendant, Facey, about a Hall
Pen through telegram, saying “”WILL YOU SELL US BUMPER HALL PEN? TELEGRAPH
LOWEST CASH PRICE-ANSWER PAID”. The same day, Facey responded with the price of
the Pen to be £900. To which, the appellant replied, “We agree to buy Bumper Hall Pen for
the sum of nine hundred pounds asked by you. Please send us your title deed in order that
we may get early possession.” The defendant refused to sell at that price that they had
initially quoted. It was finally held in this case that no contract came into existence between
both the parties because their exchange of telegrams was merely an informational
exchange where the appellant asked for the price of the Hall Pen and the defendant quoted
the price.

3. CONTRACT IS INTENDED TO ENFORCE LEGAL RELATIONSHIP:

The essential purpose of a contract is to enforce a legal relationship. If the legal

relationship is not established between the parties, then such agreement fails to become a
contract. In any case such agreements are not contracts.

CASE : BALFOUR V. BALFOUR

Can a promise between married parties result in a legally binding agreement?

In this case, Mr. Balfour promised to send £30 to Mrs. Balfour per month. During their stay
away, the parties drifted apart and separated. It was held in this case that Mr. Balfour’s
promise to pay a monthly sum of £30 did not amount to a contract, as there was no
intention to create a legal relationship on part of either of the parties.

4. MINOR CONTRACT – VOID-AB-INITIO :

A contract with minor is always Void-ab-initio. It cannot be enforced even after the minor
attains the age of majority. The contract with minor during his minority is not eligible for
ratification.

CASE : MOHORI BIBEE V. DAMODAR GHOSE

In this case, Damodar Ghose obtained money from Mohiri Bibee during his minority. When
Mohori Bibee filed to execute proceedings against Damodar Ghose, the court held that
Minor contract is Void-ab-initio.

5. A STRANGER TO CONSIDERATION CAN SUE:

A stranger to contract cannot sue, but a stranger to consideration can be sued.

CASE : CHINNAYA V. RAMAYA