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  • Read the passage given below to answer the question that follow. Communication is the very essence of any agreement which later becomes a contract; it signifies our

Read the passage given below to answer the question that follow.

Communication is the very essence of any agreement which later becomes a contract; it signifies our willingness, be it in terms of an offer or acceptance. Communication also plays a vital role in the revocation of an offer or acceptance. Offer is the building block of any contract which is complemented by acceptance, due consideration, consensus ad idem, intention, etc.; all these things are incomplete without proper communication and even if the communication of one of the things is not absolute then the agreement will be deemed to be invalid on the grounds of uncertainty.
If any of these things are not done in the proper manner as stipulated by ICA, 1872 then it can lead to legal consequences. Once the communication of offer and acceptance is done, it becomes an agreement, but before that, the parties to the contract also have an option known as revocation of offer which plays an essential role in determining the outcome of offer or acceptance. Knowledge of a proposal is a must, the proposal must be communicated or the acceptor should have the knowledge of the proposal in order to accept. Communication of offer by rendering services- it is an implied offer by rendering the services. But it has been declared to be not acceptable as an offer cannot be accepted in ignorance; it should be communicated to the person to whom it is made.
Without the communication of acceptance to the proposer, the offer cannot be accepted. The acceptance must be communicated to the proposer and not to any third party. “Section 4, Indian Contract Act, 1872- the communication of acceptance is complete- as against the proposer when it is put in course of transmission to him so as to be out of the power of acceptor; as against the acceptor, when it comes to the knowledge of the proposer.”

Question -Yash proposed to sell his house to Rajiv for 40 lakh rupees which was declined by Rajiv then Yash proposed a new offer to sell his house for 38 lakh rupees which again was rejected by Rajiv. Later Rajiv proposed his own price i.e. 35 lakh rupees which was denied by Yash. But then he agreed to 35 lakh rupees but now Rajiv no longer wants to buy it. Here-

 


 

Option: 1

Rajiv is bound by the offer he made

 


Option: 2

 Yash can force Rajiv to perform his part through a judicial remedy

 


Option: 3

Rajiv is not bound as the offer he made was refused by Yash and now it no longer subsists


Option: 4

Offer once made remains an offer hence, Rajiv cannot step back


Answers (1)

best_answer

Whenever a counteroffer is made original offer is destroyed. Here, Rajiv is not bound by the offer he made because Yash never accepted it. Later, Yash cannot enforce it.

 

Posted by

Kuldeep Maurya

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