Solve.
X sold his business to V but this fact was not known to an old customer Z. Z placed an order for certain goods to X by name. V supplied the goods to Z. Is there a valid contract?

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Solution

No, the offer was not at all valid as there was no contract at all between V and Z because Zs offer was a specific offer to X and X alone could accept it.

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Similar questions

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.

Q. Solve.
One Blenkam, knowing that Blenkarn & Co. was a reputed customers of Lindsay & Co., placed an order with Lindsay & Co. by imitating the signature of Blenkarn & Co. The goods were then sold to Cundy, an innocent buyer. A suit was filed by Lindsay & Co. against Cundy for recovery of goods. Discuss the legal position.

Q. A _______ is a mercantile agent employed to sell goods which have been placed in his possession or contract to buy goods for his principal. He is the apparent owner of the goods in his custody and can sell them in his own name and receive payment for the goods.

Q. When a customer returns goods a statement called " ________" is sent to him. This informs the customer that his account has been credited to the extent of value of the goods returned.

An accountant, while balancing his books found that there was a difference of Rs. 85.95 in the trial balance. Being required to prepare the final accounts, he placed this difference to a newly opened suspense account which was carried forward to the next year, when the follwing errors were discovered.

(i) Goods bought from a merchant for Rs. 5.50 had been posted to the credit of his account as Rs. 55.

(ii) An item of Rs. 10.62 entered in the sales return book had been posted to the debit of the customer who returned the goods.

(iii) Rs. 60 owing by a customer had been omitted from the schedule of sundry debtors.

(iv) Rs. 2.31 discount received from a creditor had been duly entered in his account but not posted to discount received account.

Give journal entries necessary to correct these errors and prepare the suspense account.

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Solve.X sold his business to V but this fact was not known to an old customer Z. Z placed an order for certain goods to X by name. V supplied the goods to Z. Is there a valid contract?

No, the offer was not at all valid as there was no contract at all between V and Z because Zs offer was a specific offer to X and X alone could accept it.

Solve.
X sold his business to V but this fact was not known to an old customer Z. Z placed an order for certain goods to X by name. V supplied the goods to Z. Is there a valid contract?