CA Foundation Exam > CA Foundation Questions > B a supplier, sent a draft agreement relating...
Start Learning for Free
B a supplier, sent a draft agreement relating to the supply of coal to the
manager of railway Co. viz, Metropolitan railway for his acceptance. The manager
wrote the word “Approved” on the same and put the draft agreement in the drawer of
the table intending to send it to the company’s solicitors for a formal contract to be
drawn up. By an over sight the draft agreement remained in drawer. Decide the
validity of the agreement.
? Related: Consideration (Part - 2)
Most Upvoted Answer
B a supplier, sent a draft agreement relating to the supply of coal to...
Validity of the Agreement in Consideration (Part-2)
The given scenario involves the concept of consideration in the validity of the agreement. Let's understand the validity of the agreement in detail.
Definition of Consideration
Consideration is something of value given by one party to another in exchange for something else of value. It is a crucial element in the formation of a contract.
Validity of the Agreement
In the given scenario, B, the supplier, sent a draft agreement to the manager of the Metropolitan railway for his acceptance. The manager approved the agreement and put it in the drawer with the intention of sending it to the company's solicitors for a formal contract to be drawn up. However, due to an oversight, the draft agreement remained in the drawer.
The validity of the agreement depends on whether consideration was present in the contract. As per the facts given, B agreed to supply coal to the Metropolitan railway, and the manager's approval of the draft agreement was a clear indication of his acceptance of the terms.
However, the contract cannot be enforced until a formal contract is drawn up by the company's solicitors. This means that the terms of the agreement were not finalized, but the intention to enter into a contract was present.
Therefore, the agreement is valid to the extent that it reflects the parties' intentions to enter into a contract, but it cannot be enforced until a formal contract is drawn up.
Conclusion
In conclusion, the validity of the agreement in consideration (part-2) depends on the presence of consideration in the contract. In the given scenario, the agreement is valid to the extent that it reflects the parties' intentions to enter into a contract, but it cannot be enforced until a formal contract is drawn up.
The given scenario involves the concept of consideration in the validity of the agreement. Let's understand the validity of the agreement in detail.
Definition of Consideration
Consideration is something of value given by one party to another in exchange for something else of value. It is a crucial element in the formation of a contract.
Validity of the Agreement
In the given scenario, B, the supplier, sent a draft agreement to the manager of the Metropolitan railway for his acceptance. The manager approved the agreement and put it in the drawer with the intention of sending it to the company's solicitors for a formal contract to be drawn up. However, due to an oversight, the draft agreement remained in the drawer.
The validity of the agreement depends on whether consideration was present in the contract. As per the facts given, B agreed to supply coal to the Metropolitan railway, and the manager's approval of the draft agreement was a clear indication of his acceptance of the terms.
However, the contract cannot be enforced until a formal contract is drawn up by the company's solicitors. This means that the terms of the agreement were not finalized, but the intention to enter into a contract was present.
Therefore, the agreement is valid to the extent that it reflects the parties' intentions to enter into a contract, but it cannot be enforced until a formal contract is drawn up.
Conclusion
In conclusion, the validity of the agreement in consideration (part-2) depends on the presence of consideration in the contract. In the given scenario, the agreement is valid to the extent that it reflects the parties' intentions to enter into a contract, but it cannot be enforced until a formal contract is drawn up.
Community Answer
B a supplier, sent a draft agreement relating to the supply of coal to...
The offer is invalid since it has not been communicated while any agreement is said to be accepted when the letter of acceptance comes to the knowledge of offeror while in the above case there has been no communication and thus no acceptance since offer and acceptance are two essentials of a valid contract
Attention CA Foundation Students!
To make sure you are not studying endlessly, EduRev has designed CA Foundation study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CA Foundation.
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
B a supplier, sent a draft agreement relating to the supply of coal to the
manager of railway Co. viz, Metropolitan railway for his acceptance. The manager
wrote the word “Approved” on the same and put the draft agreement in the drawer of
the table intending to send it to the company’s solicitors for a formal contract to be
drawn up. By an over sight the draft agreement remained in drawer. Decide the
validity of the agreement. Related: Consideration (Part - 2)?
Question Description
B a supplier, sent a draft agreement relating to the supply of coal to the manager of railway Co. viz, Metropolitan railway for his acceptance. The manager wrote the word “Approved” on the same and put the draft agreement in the drawer of the table intending to send it to the company’s solicitors for a formal contract to be drawn up. By an over sight the draft agreement remained in drawer. Decide the validity of the agreement. Related: Consideration (Part - 2)? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about B a supplier, sent a draft agreement relating to the supply of coal to the manager of railway Co. viz, Metropolitan railway for his acceptance. The manager wrote the word “Approved” on the same and put the draft agreement in the drawer of the table intending to send it to the company’s solicitors for a formal contract to be drawn up. By an over sight the draft agreement remained in drawer. Decide the validity of the agreement. Related: Consideration (Part - 2)? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for B a supplier, sent a draft agreement relating to the supply of coal to the manager of railway Co. viz, Metropolitan railway for his acceptance. The manager wrote the word “Approved” on the same and put the draft agreement in the drawer of the table intending to send it to the company’s solicitors for a formal contract to be drawn up. By an over sight the draft agreement remained in drawer. Decide the validity of the agreement. Related: Consideration (Part - 2)?.
B a supplier, sent a draft agreement relating to the supply of coal to the manager of railway Co. viz, Metropolitan railway for his acceptance. The manager wrote the word “Approved” on the same and put the draft agreement in the drawer of the table intending to send it to the company’s solicitors for a formal contract to be drawn up. By an over sight the draft agreement remained in drawer. Decide the validity of the agreement. Related: Consideration (Part - 2)? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about B a supplier, sent a draft agreement relating to the supply of coal to the manager of railway Co. viz, Metropolitan railway for his acceptance. The manager wrote the word “Approved” on the same and put the draft agreement in the drawer of the table intending to send it to the company’s solicitors for a formal contract to be drawn up. By an over sight the draft agreement remained in drawer. Decide the validity of the agreement. Related: Consideration (Part - 2)? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for B a supplier, sent a draft agreement relating to the supply of coal to the manager of railway Co. viz, Metropolitan railway for his acceptance. The manager wrote the word “Approved” on the same and put the draft agreement in the drawer of the table intending to send it to the company’s solicitors for a formal contract to be drawn up. By an over sight the draft agreement remained in drawer. Decide the validity of the agreement. Related: Consideration (Part - 2)?.
Solutions for B a supplier, sent a draft agreement relating to the supply of coal to the
manager of railway Co. viz, Metropolitan railway for his acceptance. The manager
wrote the word “Approved” on the same and put the draft agreement in the drawer of
the table intending to send it to the company’s solicitors for a formal contract to be
drawn up. By an over sight the draft agreement remained in drawer. Decide the
validity of the agreement. Related: Consideration (Part - 2)? in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of B a supplier, sent a draft agreement relating to the supply of coal to the
manager of railway Co. viz, Metropolitan railway for his acceptance. The manager
wrote the word “Approved” on the same and put the draft agreement in the drawer of
the table intending to send it to the company’s solicitors for a formal contract to be
drawn up. By an over sight the draft agreement remained in drawer. Decide the
validity of the agreement. Related: Consideration (Part - 2)? defined & explained in the simplest way possible. Besides giving the explanation of
B a supplier, sent a draft agreement relating to the supply of coal to the
manager of railway Co. viz, Metropolitan railway for his acceptance. The manager
wrote the word “Approved” on the same and put the draft agreement in the drawer of
the table intending to send it to the company’s solicitors for a formal contract to be
drawn up. By an over sight the draft agreement remained in drawer. Decide the
validity of the agreement. Related: Consideration (Part - 2)?, a detailed solution for B a supplier, sent a draft agreement relating to the supply of coal to the
manager of railway Co. viz, Metropolitan railway for his acceptance. The manager
wrote the word “Approved” on the same and put the draft agreement in the drawer of
the table intending to send it to the company’s solicitors for a formal contract to be
drawn up. By an over sight the draft agreement remained in drawer. Decide the
validity of the agreement. Related: Consideration (Part - 2)? has been provided alongside types of B a supplier, sent a draft agreement relating to the supply of coal to the
manager of railway Co. viz, Metropolitan railway for his acceptance. The manager
wrote the word “Approved” on the same and put the draft agreement in the drawer of
the table intending to send it to the company’s solicitors for a formal contract to be
drawn up. By an over sight the draft agreement remained in drawer. Decide the
validity of the agreement. Related: Consideration (Part - 2)? theory, EduRev gives you an
ample number of questions to practice B a supplier, sent a draft agreement relating to the supply of coal to the
manager of railway Co. viz, Metropolitan railway for his acceptance. The manager
wrote the word “Approved” on the same and put the draft agreement in the drawer of
the table intending to send it to the company’s solicitors for a formal contract to be
drawn up. By an over sight the draft agreement remained in drawer. Decide the
validity of the agreement. Related: Consideration (Part - 2)? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup