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Given Below is a Statement of Legal Principle Followed by Factual Situation. Apply the Principle to the Facts and Select the Most Appropriate Answer. Principle: a Contract Requires a Proposal - Legal Reasoning

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MCQ

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

Principle: A contract requires a proposal and acceptance of the proposal. It is necessary to make a binding contract, not only that the proposal is accepted, but also that the acceptance is notified to the proposer.

Factual Situation: A sent a letter to B stating that he was willing to sell to B, 10  bags of rice at Rs. 20/- each. B made a telephone call to A to inform him that he had accepted the offer. Just as he was stating his acceptance, a very noisy aircraft few over B's house. A was not able to hear the acceptance.

Options

  • There is no contract since the acceptance has not been notified to A

  • There is no contract since the reply also has to be in writing

  • This is a valid contract since B conveyed his acceptance to A. It does not matter if A heard it or not

  • None of the above

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Solution

Explanation:

As per the given principle option "There is no contract since the acceptance has not been notified to A " is correct. In this case, the contract could not be completed because of the offer or could not be notified about the acceptance. Without acceptance, there is no contract officer + acceptance = contract. Properly Notified as conveyed

Concept: Contract Law
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