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Question

The question consist of two statements, one labelled as PRINCIPLE and other as FACT. You are to examine the principle and apply it to the given facts carefully and select the best option.
PRINCIPLE: 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 other to such act or abstinence, he is said to make a proposal.
FACT: Ramanuj telegrammed to the Shyamsunder, writing: 'will you sell me your Rolls Royce car? Telegram the lowest cash price'. Shyamsunder replied, too by telegram: 'Lowest price for carar is Rs. 20 lakhs'. Ramanuj immediately sends his consent through telegram stating: 'I agree to buy the Car for Rs. 20 lakh asked by you'. Now Shaymsunder refused to sell the car.

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

The correct option is B He can refuse to sell the car because it was only invitation to offer and not the real offer
He has full right to refuse the selling of car . Because , he merely inviting other parties to make offers . An offer is said to be accepted when both the parties to contract have intention to enforced . Here , no offer is made only invitation to offer is made . Example of this illustration is in , Harvey V Facey , Court observed that the defendants gave only the lowest price and didn't expressed their willingness to sell . As it was never accepted by the defendant .

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