Question

Principle: Acceptance should be made while the offer is still subsisting. The offer or is free to retract his offer at any time before his offer gets accepted by the offeree. Once the offer is withdrawn or is lapsed, it is not open to being accepted so as to give rise to a contract. Similarly, if time is prescribed within which the offer is to be accepted, then the offer must be accepted within the prescribed time. And if no time is prescribed, then the acceptance must be made within a reasonable time. 'What is a reasonable time', is a question of fact which is to be determined by taking into account all the relevant facts and surrounding circumstances.

Facts: 'X' makes an offer to 'Y' to sell his equipment for ₹1000.00. No time is specified for acceptance. 'Y' sends his reply two years after receiving the offer.

Which of the following derivations is correct?

विकल्प

• There arises a contract between 'X' and 'Y' to sell/buy the equipment in question for ₹1000.00

• There does not arise any contract between 'X' and 'Y' to sell/buy the equipment in question for ₹1000.00

• 'X' is bound by his offer and hence cannot reject the acceptance made by 'Y'

• There arises a promise by 'Y' to buy the equipment

Answer 1

There does not arise any contract between 'X' and 'Y' to sell/buy the equipment in question for ₹1000.00

Explanation:

According to the provisions of the Indian Contract Act and the principle given here, an offer must be accepted within the prescribed time and if no time is prescribed, then the acceptance must be made within a reasonable time. In the given scenario, Y sends his acceptance to an offer made by X, two years after receiving the offer. So, it is not within a reasonable time.