Question

Legal Principle: When one person signifies to another his willingness to do or abstain from doing anything, with a view to obtaining the assent of that person to such an act or absistence, he is said to have made a proposal.

Factual Situation: Ramanuj telegraphed to shyam sunder, writing: 'will you sell me your Rolls Royce car? Telegram the lowest cash price.' Shyam Sunder also replied by telegram: 'Lowest price for car is Rs. 20 lakh.' Ramanuj immediately sent his consent through telegram stating: 'I agree to buy the car for Rs. 20 lakh asked by you.' Shysam Sunder refused to sell the car.

Choose the correct option.

• A. He cannot refuse to sell the car because the contract has already been made
• B. He can refuse to sell the car because it was only invitation to offer and not the real offer
• C. It was not a valid offer because willingness to enter into a contract was absent
• D. None of these

Answer 1

Answer: (B)

He can refuse to sell the car because it was only invitation to offer and not the real offer

Shyam Sunder can refuse to sell the car because it was only invitation to offer and not real offer.

In this case, there's no complete offer but just invitation to offer. He is not bound to sell his car at the stated price.

An offer is the final expression of willingness by the offeror to be bound by his offer sometimes a person may not offer to sell his goods but merely invites other parties to make offers on the specified terms.

Hence, B is the correct option.