Assurance Given By Official of A Company

Assurance Given by Official of a Company

Assurance given by official not authorized to make agreement on behalf of the company cannot be termed as an offer.

In I.B.P. Co. Ltd. v. Ramashish Prasad Singh,4 an official of the appellant / defendant company, furnished information in the presence of some others that certain dealers were going to be emPIOYEd by the I’B'P, one such being a dealer being at a particular SP0t and encouraged the plaintiff/ respondent that he being, a local man had better PrOSpects for the job and satisfied the criteria laid down by the company for its illegibility. Such an assurance or information furnished by the official, the Patna High Court ruled, could not be termed to be a proposal/ offer in the eyes of law. The Court explained that oral instruction, information and assurance given by the official who was not authorized to make an agreement on behalf of the company could not be termed as an oral contract.

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