Question

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 abstinence, he is said to have made a proposal.
Fact: "Ramanuj telegraphed to Shyam Sunder, writing : "Will you sell me your Rools 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. " Shyam Sunder refused to sell the car.

• 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

The correct option is B He can refuse to sell the CAR because it was only invitation to offer and not the real offer

When one person signifies to another his willingness to do or to abstain from doing anything, with a view to obtaining the assent of that person to such act or abstinence, he is said to make a proposal. In the given case. It was just an invitation to offer, not the real offer. Hence, Shyamsunder can refuse to sell the car.