Question

LEGAL PRINCIPLES:
1. Once a person accepts another's an offer, and signifies such acceptance to the former, a contract comes into existence between them.
2. Uncertain agreements are void agreements.
3. Rejected offers can be accepted only if renewed.
FACTUAL SITUATION: Bakshi wanted to purchase a particular land. He sent a letter to his cousin. Dutt, offering him ₹4 lakhs for it. Dutt replied that he would not sell it below 5 lakhs. Bakshi communicated his willingness to pay this amount. Dutt did not sell the land to Bakshi. Bakshi sued him for breach of contract.
DECISION:

Options

• Dutt is liable because once he communicates an offer to Bakshi and Bakshi accepts it, a contract comes into existence.

• Dutt is liable as he has misled Bakshi by his actions.

• Dutt is not liable because he has rejected the offer by giving a counter offer which is also not specific.

• Dutt is not liable as there is no legally enforceable contract.

Answer 1

Dutt is not liable because he has rejected the offer by giving a counter offer which is also not specific.

Explanation:

Contract comes into existence only when an offer made is accepted. Here Dutt did not accept the offer made by Bakshi, instead, he made an unspecific offer, which cannot be assumed as people offer hence there is no contract.