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The Question Consists of Two Statements, One Labelled as the Principle and Other as Fact. You Are to Examine the Principle and Apply It to the Given Facts Carefully and Select the Best Option. - Legal Reasoning

MCQ

The question consists of two statements, one labelled as the principle and other as Fact. You are to examine the principle and apply it to the given facts carefully and select the best option.

Principle: When one person signifies to another his willingness to do or to abstain from doing anything, with a view to obtaining the assent of that other to such act or abstinence, he is said to make a proposal. 

Fact: “Ramanuj telegraphed to Shyam Sunder, writing: “Will you sell me your Rolls Royce CAR? Telegram the lowest cash price.” Shyam Sunder also replied by telegram: “Lowest price for CAR is 20 lakh.” Ramanuj immediately sent his consent through telegram stating: “I agree to buy the CAR for 20 lakh asked by you.” Shyam Sunder refused to sell the car.

Options

  • He cannot refuse to sell the CAR because the contract has already been made.

  • He can refuse to sell the CAR because it was only invitation to offer and not the real offer

  • It was not a valid offer because a willingness to enter into a contract was absent.

  • None of the above

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Solution

He can refuse to sell the CAR because it was only an invitation to offer and not the real offer

Explanation:

When one person signifies to another his willingness to do or to abstain from doing anything, with a view to obtaining the assent of that person to such act or abstinence, he is said to make a proposal. In the given case. It was just an invitation to offer, not the real offer. Hence, Shyamsunder can refuse to sell the car.

Concept: Indian Contract Act (Entrance Exams)
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