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प्रश्न
Principle: The communication of a proposal is complete when it comes to the knowledge of the person to whom it is made.
Facts: 'A‘ sent a letter making a proposal to 'B‘ to purchase the house of B.
विकल्प
The communication of the proposal is complete when A sent the letter.
The communication of the proposal is complete when B‘s wife received it.
The communication of the proposal is complete when B‘s wife handed over the letter to B.
The communication of the proposal is complete when B reads the letter.
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उत्तर १
The communication of the proposal is complete when B reads the letter.
Explanation:
According to Section 4 of the Indian Contract Act, The communication of a proposal is complete when it comes to the knowledge of the person to whom it is made. The communication of an acceptance is complete.
As against the proposer, when it is put in a course of transmission to him so as to be out of the power of the acceptor;
As against the acceptor, when it comes to the knowledge of the proposer. The reasonable conclusion is that in the present problem that the communication of the proposal is complete when B reads the letter is the correct answer.
उत्तर २
The communication of the proposal is complete when B reads the letter.
Explanation:
The communication of the proposal is complete only when B reads the paper. This is evident from the principle which states “The communication of a proposal is complete when it comes to the knowledge of the person to whom it is made.” It means only after B reads the letter, it comes to his knowledge.
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संबंधित प्रश्न
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Apply the legal principles to the facts given below and select the most appropriate answer.
Legal Principles:
1. Consideration is something that moves from the promisee to the promisor, at the implied or express request of the latter, in return for his promise. The item that moves can be a right, interest, profit, loss, responsibility given or suffered, forbearance, or a benefit which is of some value in the eyes of law.
2. An offer may be revoked at any time before the communication of its acceptance is complete as against the proposer, but not afterward.
Factual Situation: MXM Co. is a building contractor who entered into an agreement with Star Heights Housing Association to refurbish a block of 27 flats. This contract was subject to a liquidated damages clause if they did not complete the contract on time. The MXM Co. engaged Hasan to do the carpentry work for an agreed price of Rs. 20,000. After six months of commencing the work, Hasan realized he had priced the job too low and would be unable to complete at the originally agreed price. He approached MXM Co. who recognized that the price was particularly low and was concerned about completing the contract on time. MXM Co. agreed to make additional payments to Hasan in return for his promise to carry out his existing obligations.
MXM Co. agreed to pay Hasan an additional f 575 per flat. Hasan continued work on the flats for a further period of 6 weeks but only received an additional f 5,000. He then ran out of money and refused to continue unless payment was made. MXM Co. engaged another carpenter to complete the contract and refused to pay Hasan any further sums. Hasan sued for payment under the original agreement and the subsequent agreement. MXM Co. argued that the agreement to make additional payments was unenforceable as Hasan has not provided any consideration to make this agreement a valid contract. Decide.
Apply the legal principles to the facts given below and select the most appropriate answer.
Legal Principles:
- Offer is a proposal made by one person to another to do any act or abstain from doing it. The person who makes the offer is known as the promisor or offeror and the person to whom an offer is made is known as the promisee or the offeree.
- A contract comes into being by the acceptance of an offer. When the person to whom the offer is made signifies his consent thereto, the proposal is said to be accepted and the parties are at consensus ad idem regarding the terms of the agreement.
Factual Situation: The plaintiffs offered to provide delivery of a machine tool for a price of ₹75,535. The delivery of the tool was set for 10 months, with the condition that orders only qualified as accepted once the terms in the quotation were met and prevailed over any of the buyer's terms. The buyer responded to the offer with their own terms and conditions, which did not include the 'price variation clause' listed in the seller's terms. This included a response section that required a signature and is returned in order to accept the order. The sellers returned this response slip with a cover letter signaling that delivery would be in accordance with their original quotation. The tool was ready for delivery but the buyers could not accept delivery, for which the sellers increased the price which was in line with their initial terms. This was denied by the buyer and an action was brought by the seller to claim the cost of delay and interest. Was a contract made with or without a price variation clause?
The question consists of legal propositions/principles (hereinafter referred to as 'principle') and facts. These principles have to be applied to the given facts to arrive at the most reasonable conclusion. Such principles may or may not be true in the real sense, yet you have to conclusively assume them to be true. In other words, in answering the following question, you must not rely on any principles except the principle that is given hereinbelow for the question. Further, you must not assume any facts other than those stated in the question. The objective of this section is to test your interest in the study of law, research aptitude, and problem-solving ability.
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Facts: P enters into an agreement with T, by which P has to let his house to T for two years and T has to pay ₹20,000.00 per month to P as rent. T starts a child care centre in that house. But after some time in order to earn some money for the maintenance of the centre, T starts sending the children of the centre on the rotation basis to work for four hours a day in some nearby chemical and hazardous factories. When P comes to know about this new development, he asks T either to stop the children from working in factories or to leave his house immediately. T neither agrees to leave the house nor to stop the children from working in the factories. P files a suit in the court of law of appropriate relief/action.
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Principle: A condition precedent must be complied with before the happening of the event to which such a condition is attached. Fulfillment of such a condition after the happening of the event is no fulfillment of a condition.
Facts: A transfers ₹5,000 to B on condition that he shall marry with the consent of C, D and E. As C, D, and E had to go abroad for some business purposes and as the date of marriage was already fixed, therefore, B marries without the consent of C, D, and E, but obtains their consent after the marriage when C, D, and E return to their country.
LEGAL PRINCIPLE: A contract that is impossible to perform becomes void.
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DECISION:
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.
Legal Principle: Contract is an agreement freely entered into between the parties. But when consent to an agreement is obtained to undue influence, the contract is voidable at the option of the party whose consent was so obtained.
Factual Situation: The Pragya had been worked for a businessman Anurag since the age of 18, working for a range of Anurag's businesses. In 2000, (aged 21) Pragya purchased a flat. In 2005, Mr. Anurag's business was facing financial difficulties, and he asked Pragya to offer up her flat as a financial security against an overdraft facility for the business. In July of that year, the bank's solicitors wrote to Pragya, advising that she should take Independent legal advice before putting her property up as a security for the debt. The bank also notified Pragya that the guarantee was unlimited in both time and financial amount. Having discussed the arrangement with Anurag, Pragya was unaware of the extent of the borrowing but was assured that her mortgage would not be called upon and that his own properties which were also used as security would be looked at first. A charge was executed over the Pragya's property in August 2005. In 2009, Mr. Anurag's business went into liquidation and the bank formally demanded ` 60,24,912 from Pragya. Pragya raised the defense of undue influence – stating that Mr. Anurag had induced her to enter into the agreement, and the bank had full knowledge/notice of this undue influence which should set aside the bank's right to enforce the debt recovery against Pragya. The bank is contending that there is no undue influence.
Whether the consent to offer the flat as financial security obtained through undue influence?
