Question

Given below is a statement of legal principle followed by a factual situation. Apply the principle to the facts and select the most appropriate answer.

Principle: A contract requires a proposal and acceptance of the proposal. It is necessary to make a binding contract, not only that the proposal is accepted, but also that the acceptance is notified to the proposer.

Factual Situation: A sent a letter to B stating that he was willing to sell to B, 10 bags of rice at ₹ 20/- each. B wrote a letter to A accepting the offer and posted it.

Options

• The contract is entered into the moment B posts the  letter

• The contract is entered into only after A receives and reads the letter 

• The contract is entered into only after A receives the  letter, reads it and then gets back to B

• The contract is entered into the moment A makes the  offer

Answer 1

The contract is entered into only after A receives and  reads the letter 

Explanation:

As per the stated principle, the contract would be complete when A receives the letter and reads it. Therefore option "The contract is entered into only after A receives and reads the letter " is the correct answer.