Question

Ramu applied for the post of Director in an organization. The governing body of the organization passed a resolution appointing him to the post. After the meeting, one of the members of the governing body informed him privately of the resolution. Subsequently, the resolution was rescinded.  Ramu claims damages. Which one of the following is the correct legal proposition in the case? 

पर्याय

• Ramu cannot claim damages as he had not resigned  from his existing post in anticipation of getting the appointment letter

• Ramu cannot claim damages as there was no formal communication

• Ramu can claim damages as a governing body cannot rescind the resolution once passed 

• Ramu can claim damages as there was a private communication

Answer 1

Ramu cannot claim damages as there was no formal communication

Explanation:

This problem is based on a leading case Powell v Lee (1908) 99 LT 284 was an English contract law case. The ruling established that acceptance of an offer must be communicated to offer or by offeree himself or authorized agent.