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Past Adjustments

LEGAL PRINCIP...

Question

LEGAL PRINCIPLES:
$1.$ Once a person accepts another's offer, and signifies such acceptance to the former, a contract comes into existence between them.
$2.$ Uncertain agreements are void agreements.
$3.$ Rejected offers can be accepted only if renewed.
FACTUAL SITUATION: Bakshi wanted to purchase a particular land. He sent a letter to his cousin. Dutt, offering him $R s . 4$ lakhs for it. Dutt replied that he would not sell it below $5$ lakhs. Bakshi communicated his willingness to pay this amount. Dutt did not sell the land to Bakshi. Bakshi sued him for breach for contract.
DECISION

A

Dutt is liable because once he communicates an offer to Bakshi and Bakshi accepts it, a contract comes into existence

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B

Dutt is liable as he has misled Bakshi by his actions

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C

Dutt is not liable because he has rejected the offer by giving a counter offer which is also not specific

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D

Dutt is not liable as there is no legally enforceable contract

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Solution

The correct option is C Dutt is not liable because he has rejected the offer by giving a counter offer which is also not specific
Contract comes into existence only when an offer made is accepted. Here Dutt did not accept offer made by Bakshi, instead he made an unspecific offer, which cannot be assumed as people offer hence there is no contract.

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Similar questions

Q. Legal Principle: An agreement, the meaning of which is not certain, or capable of being made certain, is void.

Factual Situation: M offered to sell his land to N at

280. N r e p l i e d a c c e p t i n g t h e o f f e r a n d e n c l o s i n g

30 and promising to pay the balance amount by monthly installments of $50 each.Since N accepted the offer subject to making payments in installments.
Issue: Is there a valid contract?

Q. Legal Principle:With the counter offer the original offer lapses.

Factual Situation: A, offers to sell his house to B for Rs.5 lakhs (must be given in cash). B says,'I accept your offer.Here is Rs.2 lakhs in cash and three month promissory note for the balance.
Issue: Is there any contract between A and B.

Q. Given below is a statement of legal principle followed by factual situation. Apply the principle to the facts and select the most appropriate answer.
Principle: A contract requires a proposal and an acceptance of the proposal. It is necessary to make a binding contract, not only that the proposal be accepted, but also that the acceptance is notified to the proposer.
A sent a letter to B stating that he was willing to sell to B,

10

bags of rice at

R s . 20 / -

each. B made a telephone call to A to inform him that he had accepted the offer. Just as he was stating his acceptance, a very noisy aircraft few over B's house. A was not able to heat the acceptance.

Q. Principle: Acceptance should be made while the offer is still subsisting. The offer or is free to retract his offer at anytime before his offer gets accepted by the offeree. Once the offer is withdrawn or a lapsed, it is not open to be accepted so as to give rise to a contract. Similarly, if a time is prescribed within which the offer is to be accepted, then the offer must be accepted within the prescribed time. And if no time is prescribed, then the acceptance must be made within a reasonable time. 'What is a reasonable time', is a question of fact which is to be determined by taking into account all the relevant facts and surrounding circumstances.
Facts: 'X' makes an offer to 'Y' to sell his equipment for

R s . 1000.00

. No time is specified for the acceptance. 'Y' sends his reply two years after receiving the offer.
Which of the following derivations is correct?

Q. LEGAL PRINCIPLES:

1.

Acceptance must be given only by the person to whom the offer is made.

2.

Communication of acceptance to a person who did not make the offer does not bind the offeror.
FACTUAL SITUATION: Pal sold his business to Sam without disclosing it to his customers. Mani, an old customer sent an order for goods to Pal by name. Sam, the new owner, executed the order. Mani refuses to accept the goods from Sam as he intended to deal only with Pal. In a suit by Sam against Mani.

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