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

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

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THE CONSTITUTION OF INDIA, 1949 (PAPER – 13 Q. NO. 421 TO 455)

THE CONSTITUTION OF INDIA, 1949 (PAPER – 03 Q. NO. 71 TO 105)

THE CHHATTISGARH LAND REVENUE CODE, 1959 (PAPER 01 Q. NO. 1 TO 11)

THE SPECIAL MARRIAGE ACT, 1954 (PAPER 01 Q. NO. 1 TO 10)

THE TRANSFER OF PROPERTY ACT, 1882 (PAPER 08 Q.NO. 281 TO 320)

THE CODE OF CIVIL PROCEDURE, 1908 (PAPER – 11 Q. NO. 401 TO 440)

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

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THE NEGOTIABLE INSTRUMENTS ACT, 1881 (PAPER 03 Q. NO. 81 TO 120)

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THE INDIAN EVIDENCE ACT, 1872 (PAPER – 04 Q. NO. 121 TO 160)

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THE CODE OF CRIMINAL PROCEDURE, 1973 (PAPER – 02 Q. NO. 41 TO 80)