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 offerer. 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: DECISION: (Answer the question after reading the following paragraph.)

Direction: Given below is a statement of legal principle followed by a factual situation. Apply the principle to the facts given below and select the most appropriate answer.

Option A: Sam cannot recover as Mani never intended to deal with him.

Option B: Can recover the price as he had supplied goods only against the order made by Mani

Option C: Sam cannot recover as it was only an invitation to offer by Mani on which no acceptance can be given by Sam.

Option D: Sam can recover as the price of the goods as an offer once accepted results in a contract.

Correct Answer

Option: a

Explanation

Section 20 of the Indian Contract Act describes Agreement void where both parties are under mistake as to matter of fact.

Sample Mock Tests for Practice

MADHYA PRADESH LOWER JUDICIAL SERVICES 2019(2)

THE INDIAN EVIDENCE ACT, 1872 (PAPER – 02 Q. NO. 41 TO 80)

THE CONSTITUTION OF INDIA, 1949 (PAPER – 05 Q. NO. 141 TO 175)

THE CODE OF CIVIL PROCEDURE, 1908 (PAPER – 09 Q. NO. 321 TO 360)

THE TRANSFER OF PROPERTY ACT, 1882 (PAPER 01 Q.NO. 1 TO 40)

THE CODE OF CIVIL PROCEDURE, 1908 (PAPER – 22 Q. NO. 841 TO 874)

MADHYA PARDESH LOWER JUDICIAL SERVICES 2021

HIMACHAL PARDESH LOWER JUDICIAL SERVICES 2014

THE INDIAN CONTRACT ACT, 1872 (PAPER – 14 Q. NO. 456 TO 490)

HIMACHAL PARDESH LOWER JUDICIAL SERVICES 2007-1

THE CODE OF CRIMINAL PROCEDURE, 1973 (PAPER – 16 Q. NO. 601 TO 640)

THE CODE OF CRIMINAL PROCEDURE, 1973 (PAPER – 19 Q. NO. 721 TO 760)

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THE MUSLIM PERSONAL LAWS (PAPER 01 Q. NO. 1 TO 29)

HIMACHAL PARDESH LOWER JUDICIAL SERVICES 2013

THE LIMITATION ACT, 1963 (PAPER 03 Q. NO. 81 TO 120)

THE LAW OF TORTS (PAPER 03 Q. NO. 91 TO 135)

THE ARBITRATION AND CONCILIATION ACT, 1996 (PAPER 01 Q. NO. 1 TO 30)

THE SPECIFIC RELIEF ACT, 1963 (PAPER – 02 Q. NO. 36 TO 70)

THE INDIAN CONTRACT ACT, 1872 (PAPER – 04 Q. NO. 106 TO 140)

GUJRAT LOWER JUDICIAL SERVICES 2019(1) & (2)

THE COPYRIGHT ACT, 1957 (PAPER 01 Q. NO. 1 TO 7)

THE CONSTITUTION OF INDIA, 1949 (PAPER – 17 Q. NO. 561 TO 595)

THE NEGOTIABLE INSTRUMENTS ACT, 1881 (PAPER 01 Q. NO. 1 TO 40)

THE SPECIFIC RELIEF ACT, 1963 (PAPER – 05 Q. NO. 141 TO 175)

THE INDIAN EVIDENCE ACT, 1872 (PAPER – 06 Q. NO. 201 TO 240)

UTTAR PARDESH LOWER JUDICIAL SERVICES LAW EXAM 2018

MADHYA PRADESH LOWER JUDICIAL SERVICES 2018(2)

THE LIMITATION ACT, 1963 (PAPER 06 Q. NO. 201 TO 240)

BIHAR LOWER JUDICIAL SERVICES EXAM 2020

THE INDIAN EVIDENCE ACT, 1872 (PAPER – 03 Q. NO. 81 TO 120)

THE CONSTITUTION OF INDIA, 1949 (PAPER – 14 Q. NO. 456 TO 490)

BIHAR LOWER JUDICIAL SERVICES 2018

THE INDIAN CONTRACT ACT, 1872 (PAPER – 17 Q. NO. 561 TO 595)

THE CONSTITUTION OF INDIA, 1949 (PAPER – 15 Q. NO. 491 TO 525)

THE CODE OF CRIMINAL PROCEDURE, 1973 (PAPER – 12 Q. NO. 441 TO 480)