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Question
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.
Options
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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Solution 1
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.
Solution 2
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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Given below is a statement of legal principle followed by a factual situation. Apply the principle to the facts and select the most appropriate answer.
Principle: An agreement becomes a contract when it is entered into between two or more people with each other's free consent. Two or more people are said to consent when they agree to the same thing in the same sense. Consent is said to be free when it is not caused by coercion, undue influence, fraud, misrepresentation, or mistake.
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X, a married woman, agreed to live in adultery with B and also agreed to serve him as his housekeeper. In return, B agreed to pay X ₹ 500 per month for living in adultery and ₹ 500 per month for housekeeping. The agreement is ______.
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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.
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Decision
Apply the legal principles to the facts given below and select the most appropriate answer.
Legal Principles:
1. A contract comes into being from the acceptance of an offer, When the person to whom the offer is made signifies his assent thereto, the proposal is said to be accepted and the parties are at consensus and idem regarding the terms of the agreement.
2. Consideration is something that moves from the promise 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.
3. Contractual rights and liabilities are exclusive to the parties to contract.
4. There are few exceptions to the doctrine of privity of contracts like agency, trust, assignment, and third party beneficiary.
5. A quasi-contract is a contract that is created by the court when no such official contract exists between the parties to prevent a party from being unjustly enriched, or from benefitting from the situation when he/she does not deserve to do so.
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