Define the term "Proposal". Discuss the

Question

Define the term "Proposal". Discuss the essentials of a valid offer.

12 May 2025

Answer :

Word Count : 337

In Business Law, the term "Proposal" is defined under Section 2(a) of the Indian Contract Act, 1872. A proposal is made when one person signifies to another their willingness to do or abstain from doing something, with a view to obtaining the assent of that other person. When such a proposal is accepted, it becomes a promise, forming the foundation of a contract. In simple terms, a proposal or offer is the first step towards the formation of a legally binding agreement.

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