CROSS OFFERS

When the offers made by two persons to each other containing similar terms of bargain cross each other in post, they are known as cross offers.

EXAMPLE

On 1st January, A offers to sell his watch to B for Rs. 2,000 through a letter sent by post. On the same date B also writes to A making an offer to purchase A's watch for Rs. 2,000. When A or B send their letters, they do not know about the offer which is being made by the other side. In these cross offers, even though both the parties intend the same bargain, there arises no contract. A contract could arise only if either A of B, after having the knowledge of the offer, had accepted the same.

TINN V. HOFFMANN, (1873) 29 L.T. 271.

A wrote to B indicating his willingness to sell 800 tons of iron at 69 sh. per ton. On the same day, B also wrote to A offering to buy 800 tons of iron at the same rate of 69 sh. per ton. The two letters crossed each other in post. B brought an action against A for the supply of iron contending that a valid contract had been created between the two parties. It was held that in this case there were only two cross offers and the offer of neither of the parties having beenaccepted by the other, there was no contract which could be enforced.