Page 33 - DCOM103_COMMERCIAL_LAW

Commercial Law

Notes 6. A person who is interested in the ........................ which another is bound by law to pay, and
who, therefore, pays it, is entitled to be reimbursed by the other.

7. Obligation of a person enjoying benefits of ........................ act.
2.11 Review Questions

1. Define offer and distinguish between offer and invitation to offer.
2. (i) How is an offer made? (ii) Explain an implied offer, a specifi c offer, a general offer, a
counter-offer?
3. If the special conditions forming part of an offer are contained in a document which is
delivered after the contract is complete, is the other party (say a customer) bound by
them?
4. What are the reasons due to which the offer lapses or is revoked? If no time is fixed by the

offeror within which the offer is to be accepted does the offer remain open for an indefi nite
period of time?
5. (i) When is an offer said to be accepted? (ii) In which way acceptance of offer may be
made?

6. Comment: (i) “Acceptance must be absolute and qualified”? (ii) “A mere mental acceptance
is no acceptance”. (iii) “Acceptance must be according to the mode prescribed by the
offeror”? (iv) “A mere mental acceptance not evidenced by words or conduct is in the eye
of law no acceptance”.
7. Discuss the rules regarding communication of offer and acceptance.
8. “A stranger to a contract cannot maintain a suit”. Discuss.

9. A tells B in the course of a conversation with him that he will give ` 10,000 to anyone who
marries his daughter with his consent. B marries A’s daughter with A’s consent. Is he
entitled to recover this amount ?
[Hint: No, as what A tells B is a statement of intention (Re Ficus)].

9. A sees a rate book displayed in a shop. It is labelled “First Edition ` 15.” A enters the shop
and puts ` 15 on the counter and asks for the book. The bookseller does not agree to sell
saying that the real price of the book is ` 50 and that it had been marked as ` 15 by mistake.
Is the bookseller bound to sell the book for 15?
[Hint: No (Pharmaceutical Society of Great Britain v. Boots Cash Chemists).]
10. A sent a telegram to B, “Will you sell your car 7. Quote lowest price.” B sent a reply “Lowest
price ` 25,000”. A sent a second telegram to B, “1 agree to buy your car for ` 25,000.” B
thereafter refuses to sell. (a) Can A compel B to do so 7 (b) Is there a contract between
A and B ?
[Hint: (a) No. (b) No (Harvey v. Facey).]
11. B offered to sell his house to A for ` 50,000. A accepted the offer by post. On the next day,
A sent a telegram withdrawing the acceptance which reached B before the letter. (a) Is
the revocation of acceptance valid? (b) Would it make any difference if both the letters,
communicating acceptance and the telegram communicating revocation of acceptance,
reach B at the same time ?

[Hint: (a) Yes. (b) If A opens the telegram first (and this would be normally so in case of a
rational-person) and reads it, the acceptance stands revoked. If he opens the letter fi rst and
reads it, revocation of acceptance is not possible as the contract has already been concluded
(Sec. 4)].

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