Legal Question in Business Law in India

Offer And Acceptance

Mr X wrote to Mr Y offering to sell him a block of shares in Z Ltd. In her letter, which arrived on Tuesday, X asked Y to ' let me know by next Saturday'. On thursday Y posted a reply accepting the offer. At 6 pm on Friday he changed his mind and telephoned X. X was not there but her telephone answering machine recorded Y's message stating that he wished to withdraw his acceptance. On monday X opened Y's letter, which arrived that morning, and then played back the message on the machine.

1.Is there any offer?

2.Advice X course of action.


Asked on 7/11/04, 2:52 pm

2 Answers from Attorneys
G B SABARI DAS R.SUBRAHMANYAM & ASSOCIATES

Re: Offer And Acceptance

There is a valid offer from 'x'. However, 'y''s communication of acceptance and later withdrawing the same also amounts to valid communication of acceptance and later withdrawal before 'x' could act upon. Hence, 'x' further course of action against 'y' cannot be initiated since the offer of 'x' was not accepted by 'y'.

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Answered on 7/12/04, 1:30 am
Vivek Anand M/S.VIVEK ASSOCIATES

Re: Offer And Acceptance

All the ingredients of a Valid Contract are met here in the instant case, however, the subsequent rejection / withdrawal of the Offer was duly intimated by Y before X could act upon Y's acceptance. Hence, X does not have any cause of action against Y in a Court of Law.

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Answered on 7/12/04, 2:16 am


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