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 be 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 sent an e-mail to the address mentioned in the letter-head, accepting the offer.

Options

• The contract is entered into the moment the mail reaches A's server

• The contract is entered into only after A sees the  e-mail

• The contract is entered into when A sent the letter

• The contract is entered into the moment B receives an  automated delivery receipt

Answer 1

"The contract is entered into only after A sees the e-mail"

Explanation:
As per the principle, the contract is entered because it is notified and the acceptance is sent through e-mail. Therefore option "The contract is entered into only after A sees the e-mail" is correct as 'A' receives and reads the letter.