Offers 4 What constitutes an offer (1) For a proposal to constitute an “offer” in relation to the formation of a contract— (a) the offeree must have reasonable grounds to suppose that the offeror intends the 25 proposal to result in a contract if accepted, and (b) the proposal must be one which, after taking any relevant enactment or rule of law into account, could be given legal effect as a contract if accepted. (2) Any such offer may be addressed— (a) to a specific person, 30 (b) to persons of a particular description, (c) to persons in general, or (d) to the public at large. (3) Subsections (1) and (2) are without prejudice to the application of any relevant enactment, or rule of law, in relation to the constitution of a unilateral promise. 3 Contract (Formation and Remedies) (Scotland) Bill Part 1—Formation of Contract 5 Revocation of offer (1) An offer in relation to the formation of a contract may be revoked by the offeror but only if the revocation takes effect before— (a) the offeree accepts the offer, 5 (b) from the statements or conduct of the offeree it may be determined that, as mentioned in section 2(4), agreement has been reached, or (c) the offeree begins performance such as is referred to in section 3(2). (2) Subsection (1) is subject to subsections (3) and (4). (3) Where such an offer is addressed to persons in general, persons of a particular description 10 or the public at large— 1 (a) revocation is, in a case— (i) other than is mentioned in sub-paragraph (ii), to be effected by the same means as were used to make the offer, and (ii) where the means of effecting revocation is specified in the offer, to be 15 effected by the means so specified, and (b) subsection (1) is to be construed, in determining whether revocation affects a particular person, as if for references in the subsection to the offeree there were substituted references to that person. (4) Revocation under subsection (1) is ineffective if— 20 (a) it is manifest from the terms of the offer in question that it is intended to be irrevocable, or (b) the offeror has, in a declaration which has taken effect, stated that it is irrevocable. 6 Lapsing of offer on fundamental change of circumstances (1) An offer in relation to the formation of a contract lapses on a fundamental change of 25 circumstances and having lapsed can no longer be accepted. (2) Without prejudice to the generality of subsection (1), there is a fundamental change of circumstances if, after the offer is made but before a contract is formed, the offeror or offeree— (a) dies, or 30 (b) becomes incapable of making any decision as to whether to form the contract. (3) But an offer such as is mentioned in subsection (1) does not lapse where, after it is made but before a contract is formed, the offeror or offeree becomes insolvent. (4) For the purposes of subsection (3)— (a) an offeror or offeree who is an individual, or the estate of which may be 35 sequestrated by virtue of section 6 of the Bankruptcy (Scotland) Act 2016, becomes insolvent when— (i) that person’s estate is sequestrated, (ii) that person grants a trust deed for creditors or makes a composition or arrangement with creditors, 40 (iii) a voluntary arrangement proposed by that person is approved, 4 Contract (Formation and Remedies) (Scotland) Bill Part 1—Formation of Contract (iv) that person’s application for a debt payment programme is approved under section 2 of the Debt Arrangement and Attachment (Scotland) Act 2002, or (v...