THE INDIAN CONTRACT ACT 1872 (1)

Iron at 69 s per ton on the same day b also wrote to

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Unformatted text preview: iron at the same rate of 69 s. per ton. The two letters crossed each other in post. B brought an action against A for the supply of iron contending that a valid contract had been created between the two parties. It was held that in this case there were only two cross offers and the offer of neither of the parties having been accepted by the other, there was no contract which could be enforced enforced Specific and General Offers Specific When the offer is made to a specific or an ascertained When person it is known as a specific offer, but when the specific but same is not made to any particular person but to the public at large it is known as general offer. For general instance, an offer to give reward to anybody who finds a lost dog is a general offer This general agreement will dog be deemed to be accepted by anyone who actually anyone finds the lost dog. The person, who accepts this offer, generally by performing the condition of the proposal, can bind the person making the offer. According to Section 8, “Performance of the conditions of a proposal ….. is an acceptance of the proposal.” Thus although a general offer is made to the public at large, the contract is conclud4d only with that person who acts upon the terms of the offer. The case of Carlil Vs. Carbonic Smoke Ball Co. ( 1893) I s an iillustration of a contract arising out of a general offer. The facts of t he llustration case are : The defendants advertised their product “Carbonic Smoke Ball”, a preventive remedy against influenza. In the advertisement they offered to pay a sum of 100 pounds as reward to any one who contracted influenza, colds or any disease caused by taking cold, after having used the Smoke Ball three times a day for two weeks, in accordance with the printed directions. They also announced that a sum of 1000 pounds had been deposited with the Alliance Bank to show sincerity in the matter. The plaintiff ( Mrs. Carlil ) relying on the advertisement purchased a Smoke Ball from a chemist, used the same in accordance with the directions of the defendants, but still caught influenza. She sued the defendants to claim the reward of 100 pounds advertised by them. It was held that this being a general offer addressed to all the world had ripened into a contract with the plaintiff by her act of performance of the required conditions and thus accepting the offer. She was therefore, entitled to claim the reward. Revocation of offer Revocation It is only after the acceptance of an offer that there arises a contract and then both the parties becomes bound by their respective promises. Before the offer has been accepted it can be revoked. After the offer has been accepted it ripens into a contract and then it cannot be revoked. According to Section 5 : be “ A proposal may be revoked at any time before the communication of its acceptance is complete as against the proposer, but not afterwards.” the In case of sale by auction the bids made at the auction In are offers, an...
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This document was uploaded on 09/24/2013.

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