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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.

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Question

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

MCQ
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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.

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Indian Contract Act (Entrance Exams)
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2014-2015 (May) Set 1

RELATED QUESTIONS

In this Question problem consists of a set of rules and facts. Apply the specified rules to the set of facts and answer the question. In answering the following question, you should not rely on any rule(s) except the rule(s) that are supplied for problem. Further, you should not assume any fact other than 'those stated in the problem. The aim is to test your ability to properly apply a rule to a given set of facts, even when the result is absurd or unacceptable for any other reason. It is not the aim to test any knowledge of law you may already possess. 

Rules: 
A. When land is sold, all `fixtures' on the land are also deemed to have been sold.
B. If a moveable thing is attached to the land or any building on the land, then it becomes a 'fixture'.

Facts: 
Khaleeda wants to sell a plot of land she owns in Baghmara, Meghalaya and the sale value decided for the plot includes the fully-furnished palatial six-bedroom house that she has built on it five years ago. She sells it to Garret for sixty laky rupees. After completing the sale, she removes the expensive Iranian carpet which used to cover the entire wooden floor of one of the bedrooms. The room had very little light and Khalid used this light-colored radiant carpet to negate some of the darkness in the room. Garret, after moving in, realizes this and files a case to recover the carpet from Khalid. Assume that in the above fact scenario, Khalid no longer wants the carpet. She removes the elaborately carved door to the house after the sale has been concluded and claims that Garret has no claim to the door. The door in question was part of Khaleeda's ancestral home in Nagercoil, Tamil Nadu for more than 150 years before she had it fitted as the entrance to her Baghmara house. Amongst the following options, the most relevant consideration while deciding a case on the basis of the above two principles would be:


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. 

Principle: Every agreement, by which any party is restricted absolutely from enforcing his right in respect of any contract, by the usual legal proceedings in the ordinary Tribunals, is void to that extent. The law also provides that nobody can confer jurisdiction to a civil court by an agreement between parties.

Facts: A and B entered into a valid contract for rendering certain services. A clause in the contract was that in case of any dispute arose out of the contract; it shall be referred to for Arbitration only. Is the contract valid?


Mark the best option:
Principle: A contract the consent to which is induced by a false account or idea can be avoided by the deceived party.

Facts: Jatin approached Martin to purchase a plot of land from him. Martin was under the impression that Jatin required the land for constructing a house for himself and therefore, told Jatin that a real estate group was about to start a residential project in the vicinity of the plot; though he was himself doubtful of the same. Jatin, however, wanted to purchase the plot as he had been instructed by his elder brother to do so. Jatin entered into a contract to purchase the plot for a sum of Rupees thirty-five lacs and a few days later he came to know that the information given to him by Martin in respect of the residential project was false.

What should be Jatin do next?


The Indian Contract Act came into force on:


Which of the following legal statement is incorrect?


Agreement the meaning of which is uncertain is


An implied contract is one which comes into existence on account of


Where a particular type of contract is required by law to be in writing and registered, it must comply with the necessary formalities as to writing, registration, and attestation. Otherwise, such a contract is


A contract is made where:


Where the obligation in a contract is outstanding on the part of both parties, it is called


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