Question

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

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

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.