Mr. A offered to sell25chairs to Mr. B @1,500 per chair on 12.02.2024. A promised B that he would keep the offer open till 15.02.2024. However, on…
CA Foundation · Business Laws · PYQS · September 2024
Mr. A offered to sell25chairs to Mr. B @1,500 per chair on 12.02.2024. A promised B that he would keep the offer open till 15.02.2024. However, on 13.02.2024, he sold those chairs to Mr. C @1,700 per chair without the knowledge of B. Mr. B communicated the acceptance of the above offer on 14.02.2024. Advise, with reference to provisions of the Indian Contract Act, 1872 whether Mr. B can claim damages from Mr. A?
Suggested Answer and Working Notes:
In terms of Section 5 of the Indian Contract Act,1872, a proposal can be revoked at any time before the communication of its acceptance is complete as against the proposer. Accordingly, an offer may be revoked by the offeror before its acceptance, even though he had originally agreed to hold it open for a definite period of time. So long as it is a mere offer, it can be withdrawn whenever the offeror desires. In the instant case, B cannot claim damages from A because the offer made by A is a mere offer and it can be withdrawn whenever A desires.
Topics: The Indian Contract Act, 1872, The Indian Contract Act, 1872, The Indian Contract Act, 1872, The Indian Contract Act, 1872
Related Questions in this Topic
- Answer the following as per the provisions of the Indian Contract Act, 1872: (i) 'Agent cannot personally enforce, nor ...
- Mr. A was running an orphanage. His friend Mr. S, a philanthropist agreed to donate 2 lakh for treatment of a child, who...
- Mr. L let out his residential house to Mr. M for 50,000 p.m. for a period of one year. According to the Rent agreement, ...
- Shiva gave a gift of ₹ 21,000 to his sister through a cheque issued in her favour on the occasion of Raksha Bandhan. Aft...
- Advik purchased a mobile from Bhanu. He issued a promissory note to Bhanu which was payable on demand but no specific pl...