Question

Principle: Acceptance (of offer) must be communicated by the offeree to the offerer so as to given rise to a binding obligation. The expression 'by the offeree to the offerer' includes communication between their authorised agents.
Facts 'X' made an offer to buy Y's property for a stipulated price. 'Y' accepted it and communicated his acceptance to 'Z', a stranger.
Which of the following derivations is correct?

• A. Y's acceptance resulted in an agreement
• B. Y's acceptance did not result in any agreement
• C. Y's acceptance resulted in a contract
• D. Y's acceptance resulted in a promise

Answer 1

Answer: (B)

Y's acceptance did not result in any agreement

According to the principle given in Indian Contract Act, an acceptance must be communicated by the offeree to the offeror, himself or through his authorised agents.
But in the given problem, Y accepted the proposal of X and communicated his acceptance to Z who is a stranger and his (Y's) agent. So, Y's acceptance did not result in any agreement.