Question

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

FACTUAL SITUATION: Ram sends a telegram to Sohan, writing: “Will you sell me your Rolls Royce car? Telegram the lowest cash price.” Sohan also replied by telegram: “Lowest price for the car is ₹20 lakh.” Ram immediately sent his consent through telegram stating: “I agree to buy the car for ₹20 lakh asked by you.” Sohan refused to sell the car. 

DECISION:

विकल्प

• 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 an invitation to offer and not the real offer.

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

• It was not a valid contract as offer and acceptance are conveyed through telegram.

Answer 1

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 to such act or abstinence, he is said to make a proposal. It was just an invitation to offer, not the real offer. Hence, Soahn can refuse to sell the car.