CONTRACT LAW ā Offer and Acceptance ā Communication of Offer Must Be to the Offeree
Principle Statement
An offer is a definite undertaking made with the intention that it shall become binding as soon as it is accepted by the person to whom it is addressed. A document that was not a final copy and not addressed to the respondent by the appellant's branch could not be relied on as an offer of the loan agreement.
Ratio Decidendi (Source)
Per Edozie, JSC, in Omega Bank Nigeria Plc v. O.B.C. Ltd. (2005) NLC-772002(SC) at pp. 29ā30; Paras EāB.
"An offer is a definite undertaking made with the intention that it shall become binding on the person making it as soon as it is accepted by the person to whom it is addressed... Since exhibit 6 was not a final copy and not addressed to the respondent by the Akure branch of the appellant bank, it could not rely on it as an offer of the loan agreement."
Explanation / Scope
A valid offer must be communicated to the specific offeree and must be definite. A non-final draft or a document not addressed to the offeree is not a valid offer. The principle applies to contract law. The rule ensures that the offeree knows the terms and can accept. No contract forms without a clear offer communicated to the offeree. The offeror must intend to be bound by acceptance.
