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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 Offeror. - Legal Reasoning

MCQ

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 offeror.
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:

Options

  • Sam cannot recover as Mani never intended to deal with him.  

  • Can recover the price as he had supplied goods only against the order made by Mani. 

  • Sam cannot recover as it was only an invitation to offer by Mani on which no acceptance can be given by Sam.  

  • Sam can recover as the price of the goods as an offer once accepted results in a contract. 

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Solution

Sam cannot recover as it was only an invitation to offer by Mani on which no acceptance can be given by Sam.  

Explanation:

When an offer is not accepted by the intended person the contract is not completed. In this matter, Mani has given the offer to the Pal but it was executed by Sam. Therefore, the said invitation to offer is not completed once it was not accepted by Pal himself.

Concept: Contract Law
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