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M offered to sell his land to N for ‘28000' N replied purporting to accept the offer and enclosed a cheque For 8000 he also promised to pay the balance of 20000 in monthly installments of 5000 each?
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M offered to sell his land to N for ‘28000' N replied purporting to ac...
Offer and Acceptance in Contract Law
In contract law, an offer is a proposal made by one party (the offeror) to another party (the offeree) with the intention of creating a legally binding agreement. Acceptance is the agreement of the offeree to the terms of the offer. Let's look at the scenario in detail.
The Offer
M offered to sell his land to N for '28000'.
The Acceptance
N replied purporting to accept the offer and enclosed a cheque for 8000. He also promised to pay the balance of 20000 in monthly installments of 5000 each.
The Issue
The issue with N's response is that it does not amount to a valid acceptance of M's offer. N's response is a counteroffer, which is a new proposal made by the offeree that changes the terms of the original offer. In this case, N's counteroffer changes the price and the method of payment.
The Consequence
As N's response is not an acceptance of M's offer, there is no legally binding agreement between them. M is not obligated to sell his land to N for any amount, and N cannot force M to accept his counteroffer.
Conclusion
In order for a contract to be formed, the offer and acceptance must be clear, definite, and unequivocal. A counteroffer terminates the original offer, and a new offer is made. It is important for parties to be clear in their communication and ensure that they agree to the same terms before entering into a legally binding agreement.
In contract law, an offer is a proposal made by one party (the offeror) to another party (the offeree) with the intention of creating a legally binding agreement. Acceptance is the agreement of the offeree to the terms of the offer. Let's look at the scenario in detail.
The Offer
M offered to sell his land to N for '28000'.
The Acceptance
N replied purporting to accept the offer and enclosed a cheque for 8000. He also promised to pay the balance of 20000 in monthly installments of 5000 each.
The Issue
The issue with N's response is that it does not amount to a valid acceptance of M's offer. N's response is a counteroffer, which is a new proposal made by the offeree that changes the terms of the original offer. In this case, N's counteroffer changes the price and the method of payment.
The Consequence
As N's response is not an acceptance of M's offer, there is no legally binding agreement between them. M is not obligated to sell his land to N for any amount, and N cannot force M to accept his counteroffer.
Conclusion
In order for a contract to be formed, the offer and acceptance must be clear, definite, and unequivocal. A counteroffer terminates the original offer, and a new offer is made. It is important for parties to be clear in their communication and ensure that they agree to the same terms before entering into a legally binding agreement.
Community Answer
M offered to sell his land to N for ‘28000' N replied purporting to ac...
No there is no valid contact
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M offered to sell his land to N for ‘28000' N replied purporting to accept the offer and enclosed a cheque For 8000 he also promised to pay the balance of 20000 in monthly installments of 5000 each?
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M offered to sell his land to N for ‘28000' N replied purporting to accept the offer and enclosed a cheque For 8000 he also promised to pay the balance of 20000 in monthly installments of 5000 each? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about M offered to sell his land to N for ‘28000' N replied purporting to accept the offer and enclosed a cheque For 8000 he also promised to pay the balance of 20000 in monthly installments of 5000 each? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for M offered to sell his land to N for ‘28000' N replied purporting to accept the offer and enclosed a cheque For 8000 he also promised to pay the balance of 20000 in monthly installments of 5000 each?.
M offered to sell his land to N for ‘28000' N replied purporting to accept the offer and enclosed a cheque For 8000 he also promised to pay the balance of 20000 in monthly installments of 5000 each? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about M offered to sell his land to N for ‘28000' N replied purporting to accept the offer and enclosed a cheque For 8000 he also promised to pay the balance of 20000 in monthly installments of 5000 each? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for M offered to sell his land to N for ‘28000' N replied purporting to accept the offer and enclosed a cheque For 8000 he also promised to pay the balance of 20000 in monthly installments of 5000 each?.
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