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Question
The principle is to be applied to the given facts and to choose the most appropriate option:
Principle: An offer made by one party when accepted by another makes it a contract.
Transactions:
1. P offered to sell his house for Rs. 20 lakhs to R; R told P that he was interested to buy a house for 15 lakhs only.
2. C was looking for a house for not more than 25 lakhs; P informed C that his house was available for 20 lakhs.
3. K wanted to buy some old furniture; L told K that he would sell his furniture for Rs. 10, 000.
4. R advertised to sell his old car for a price of Rs. Three lakhs; S found the advertisement and offered to buy it for Rs. 2 lakhs 50 thousand; R agrees to sell it to S.
Which among the above is actually a contract?
Options
Situation 3 only is a contract
Situations 1 and 2 are contracts
Situation 4 only is a contract
Situations 2 and 4 are contracts
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Solution
Situation 4 only is a contract
Explanation:
One of the essentials of a valid contract makes it mandatory that the offer by one party must be accepted clearly by another party. The acceptance must also be communicated. (Bhagwandas Goverdhandas Kedia vs M/s. Girdharilal Parshottamdas... on 30 August 1965)
In instance 4 (which is the correct answer), there is an offer advertisement by 'R' for selling his old car at Rs 3 lakhs. 'S' offers to buy it for Rs. 2 lakhs 50 thousand. This has been agreed by 'R' to sell it to 'S'. The offer by 'S' has been accepted by 'R'. The contract is valid.
In instance 1, P does not agree to sell his house to R. The contract is invalid. In instance 2, there is only communication between P and C about the availability of the house. There is no offer and acceptance between the two.
In instance 3, there is only communication between K and L about the availability of the furniture. There is no offer and acceptance between the two.
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Consists of legal proposition(s)/ principle(s) (hereinafter referred to as 'principle') and facts. Such principles may or may not be true in the real and legal sense, yet you have to conclusively assume them to be true for the purposes of this Section. In other words, in answering these questions, you must not rely on any principle except the principles that are given herein below for every 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, even if the 'most reasonable conclusion' arrived at may be absurd or unacceptable for any other reason. It is not the objective of this section to test your knowledge of the law.
Therefore, to answer a question, the principle is to be applied to the given facts and to choose the most appropriate option.
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Which of the following statements is the most appropriate in relation to the legal principle stated above?
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1. Vicarious liability is when employers are held liable for the torts of their employees that are committed during the course of employment.
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