To constitute a valid contract there must be a lawful offer and a lawful acceptance of that offer. The word “Proposal” and “Offer” are synonymous and are used interchangeably.
Section 2(a) defines proposal as follows:
“When one person signifies to another his willingness to do or to abstain from doing anything with a view to obtain the assent of that other to such act or abstinence, he is said to make a proposal.” The person making the offer is called the “offer or” or the “promissory” and the person to whom it is made is called ‘offered’. When the offered accepts the offer, he is called the ‘acceptor’ or the ‘promise’.