Question

Certain legal principles and specific factual situations are provided in each of the following questions. Apply the principles to the given facts and select the most appropriate answer.
LEGAL PRINCIPLE : When one person signifies to another his willingness to do or abstain from doing anything, with a view to obtaining the assent of that person to such an act or abstinence, he is said to have made a proposal.
FACTUAL SITUATION : Mohan sends a telegram to Sohan, writing: “Will you sell me your Rolls Royce car ? Telegram the lowest cash price.” Sohan also replied by telegram: “Lowest price for car Rs. 20 lakh.” Mohan immediately sent his consent through telegram stating: “I agree to buy the car for Rs. 20 lakh asked by you.” Sohan refused to sell the car.
DECISION :

• A. He cannot refuse to sell the car because the contract has already been made.
• B. He can refuse to sell the car because it was only invitation to offer and not the real offer.
• C. It was not a valid offer because willingness to enter into a contract was absent.
• D. It was not a valid contract as offer and acceptance is conveyed through telegram.

Answer 1

Answer: (B)

He can refuse to sell the car because it was only invitation to offer and not the real offer.

Answer 2

The correct option is (B): He can refuse to sell the car because it was only invitation to offer and not the real offer.