Question

LEGAL PRINCIPLES: 1. Once a person accepts another’s offer, and signifies such acceptance to the former, a contract comes into existence between them. 2. Uncertain agreements are void agreements. 3. Rejected offers can be accepted only if renewed. FACTUAL SITUATION: Bakshi wanted to purchase a particular land. He sent a letter to his cousin, Dutt, offering him ? 4 lakhs for it. Dutt replied that he would not sell it below 5 lakhs. Bakshi communicated his willingness to pay this amount. Dutt did not sell the land to Bakshi. Bakshi sued him for breach of contract. DECISION: (Answer the question after reading the following paragraph.)

LEGAL PRINCIPLES: 1. Once a person accepts another’s offer, and signifies such acceptance to the former, a contract comes into existence between them. 2. Uncertain agreements are void agreements. 3. Rejected offers can be accepted only if renewed. FACTUAL SITUATION: Bakshi wanted to purchase a particular land. He sent a letter to his cousin, Dutt, offering him ? 4 lakhs for it. Dutt replied that he would not sell it below 5 lakhs. Bakshi communicated his willingness to pay this amount. Dutt did not sell the land to Bakshi. Bakshi sued him for breach of contract. 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: Dutt is liable because once he communicates an offer to Bakshi and Bakshi accepts it, a contract comes into existence.
Option B: Dutt is liable as he has misled Bakshi by his actions.
Option C: Dutt is not liable because he has rejected the offer by giving a counter offer which is also not specific.
Option D: Dutt is not liable as there is no legally enforceable contract

Correct Answer

Option: c

Explanation

Section 7 of the Indian Contract Act describes Acceptance must be absolute.

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