BJS Exam (Preliminary, Written, Viva) Preparation Series Question: ‘A’, telegraphed to ‘B’-“Would you sell your house Taj Palace, telegraph lowest price”, ‘B’ telegraphed in reply-“Lowest price for Taj Place is Tk. 50,000”. ‘A’ telegraphed “We agree to buy Taj Place for Tk. 50,000 told by you. Please send us your title deeds”. No reply was given to this telegram. Is there a binding contract between ‘A’ and ‘B’ regarding Taj Palace? And can ‘A’ sue ‘B’ for breach of contract? Give reasons and also refer case law if any on the point. Answer: No, there is no binding contract between ‘A’ and ‘B’ and ‘A’ cannot sue ‘B’ for breach of contract. Harvey v. Facey, 1893 AC 552 and Macpherson v. Appanna AIR 1951 SC 184. Reasons: For a valid agreement (contract) offer and acceptance of offer is necessary. Section 2(a) of the Contract Act, 1872 gives the definition of the term ‘Proposal’ (Offer) in following words-“When one person signifies to another his willingness to...
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