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An auctioneer in Mumbai advertised in a newspaper that a sale of office furniture would be held on December 23, 2003. a broker came from Hyderabad to attend the auction, but all the furniture was withdrawn. The broker from Hyderabad sued the auctioneer for loss of his time and expenses. Which of the following statement(s) is correct?
- a)The broker can get damages from the auctioneer for loss of his time and expenses.
- b)The broker will not get damages from the auctioneer for loss of his time and expenses.
- c)An invitation to make offer is a valid offer.
- d)A declaration of intention by a person will give right of action to another.
Correct answer is option 'B'. Can you explain this answer?
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An auctioneer in Mumbai advertised in a newspaper that a sale of offic...
Answer:
Basis of decision:
The advertisement in the newspaper was merely an invitation to offer and not a valid offer. Therefore, the broker from Hyderabad cannot claim damages from the auctioneer for loss of his time and expenses.
Explanation:
Invitation to offer vs. offer:
An advertisement in a newspaper is generally considered an invitation to offer and not a valid offer. An invitation to offer is an invitation to negotiate, whereas an offer is a proposal made with the intention of creating a legal obligation. A valid offer must be clear, definite, and communicated to the offeree.
In this case, the auctioneer advertised the sale of office furniture in a newspaper, which was an invitation to offer. The advertisement did not contain a clear, definite proposal to sell the office furniture to anyone who responded to the advertisement. Therefore, the advertisement was not a valid offer.
Legal action for breach of contract:
To bring legal action for breach of contract, there must be a valid offer, acceptance of the offer, consideration, and intention to create legal relations. In this case, there was no valid offer and hence, no contract was formed. Therefore, the broker from Hyderabad cannot claim damages from the auctioneer for loss of his time and expenses.
Conclusion:
The correct option is B, i.e., the broker will not get damages from the auctioneer for loss of his time and expenses.
Basis of decision:
The advertisement in the newspaper was merely an invitation to offer and not a valid offer. Therefore, the broker from Hyderabad cannot claim damages from the auctioneer for loss of his time and expenses.
Explanation:
Invitation to offer vs. offer:
An advertisement in a newspaper is generally considered an invitation to offer and not a valid offer. An invitation to offer is an invitation to negotiate, whereas an offer is a proposal made with the intention of creating a legal obligation. A valid offer must be clear, definite, and communicated to the offeree.
In this case, the auctioneer advertised the sale of office furniture in a newspaper, which was an invitation to offer. The advertisement did not contain a clear, definite proposal to sell the office furniture to anyone who responded to the advertisement. Therefore, the advertisement was not a valid offer.
Legal action for breach of contract:
To bring legal action for breach of contract, there must be a valid offer, acceptance of the offer, consideration, and intention to create legal relations. In this case, there was no valid offer and hence, no contract was formed. Therefore, the broker from Hyderabad cannot claim damages from the auctioneer for loss of his time and expenses.
Conclusion:
The correct option is B, i.e., the broker will not get damages from the auctioneer for loss of his time and expenses.
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Community Answer
An auctioneer in Mumbai advertised in a newspaper that a sale of offic...
Because it's invitation to offer and there is no intention to be bound in case of invitation to offer
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An auctioneer in Mumbai advertised in a newspaper that a sale of office furniture would be held on December 23, 2003. a broker came from Hyderabad to attend the auction, but all the furniture was withdrawn. The broker from Hyderabad sued the auctioneer for loss of his time and expenses. Which of the following statement(s) is correct?a)The broker can get damages from the auctioneer for loss of his time and expenses.b)The broker will not get damages from the auctioneer for loss of his time and expenses.c)An invitation to make offer is a valid offer.d)A declaration of intention by a person will give right of action to another.Correct answer is option 'B'. Can you explain this answer?
Question Description
An auctioneer in Mumbai advertised in a newspaper that a sale of office furniture would be held on December 23, 2003. a broker came from Hyderabad to attend the auction, but all the furniture was withdrawn. The broker from Hyderabad sued the auctioneer for loss of his time and expenses. Which of the following statement(s) is correct?a)The broker can get damages from the auctioneer for loss of his time and expenses.b)The broker will not get damages from the auctioneer for loss of his time and expenses.c)An invitation to make offer is a valid offer.d)A declaration of intention by a person will give right of action to another.Correct answer is option 'B'. Can you explain this answer? 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 An auctioneer in Mumbai advertised in a newspaper that a sale of office furniture would be held on December 23, 2003. a broker came from Hyderabad to attend the auction, but all the furniture was withdrawn. The broker from Hyderabad sued the auctioneer for loss of his time and expenses. Which of the following statement(s) is correct?a)The broker can get damages from the auctioneer for loss of his time and expenses.b)The broker will not get damages from the auctioneer for loss of his time and expenses.c)An invitation to make offer is a valid offer.d)A declaration of intention by a person will give right of action to another.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for An auctioneer in Mumbai advertised in a newspaper that a sale of office furniture would be held on December 23, 2003. a broker came from Hyderabad to attend the auction, but all the furniture was withdrawn. The broker from Hyderabad sued the auctioneer for loss of his time and expenses. Which of the following statement(s) is correct?a)The broker can get damages from the auctioneer for loss of his time and expenses.b)The broker will not get damages from the auctioneer for loss of his time and expenses.c)An invitation to make offer is a valid offer.d)A declaration of intention by a person will give right of action to another.Correct answer is option 'B'. Can you explain this answer?.
An auctioneer in Mumbai advertised in a newspaper that a sale of office furniture would be held on December 23, 2003. a broker came from Hyderabad to attend the auction, but all the furniture was withdrawn. The broker from Hyderabad sued the auctioneer for loss of his time and expenses. Which of the following statement(s) is correct?a)The broker can get damages from the auctioneer for loss of his time and expenses.b)The broker will not get damages from the auctioneer for loss of his time and expenses.c)An invitation to make offer is a valid offer.d)A declaration of intention by a person will give right of action to another.Correct answer is option 'B'. Can you explain this answer? 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 An auctioneer in Mumbai advertised in a newspaper that a sale of office furniture would be held on December 23, 2003. a broker came from Hyderabad to attend the auction, but all the furniture was withdrawn. The broker from Hyderabad sued the auctioneer for loss of his time and expenses. Which of the following statement(s) is correct?a)The broker can get damages from the auctioneer for loss of his time and expenses.b)The broker will not get damages from the auctioneer for loss of his time and expenses.c)An invitation to make offer is a valid offer.d)A declaration of intention by a person will give right of action to another.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for An auctioneer in Mumbai advertised in a newspaper that a sale of office furniture would be held on December 23, 2003. a broker came from Hyderabad to attend the auction, but all the furniture was withdrawn. The broker from Hyderabad sued the auctioneer for loss of his time and expenses. Which of the following statement(s) is correct?a)The broker can get damages from the auctioneer for loss of his time and expenses.b)The broker will not get damages from the auctioneer for loss of his time and expenses.c)An invitation to make offer is a valid offer.d)A declaration of intention by a person will give right of action to another.Correct answer is option 'B'. Can you explain this answer?.
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ample number of questions to practice An auctioneer in Mumbai advertised in a newspaper that a sale of office furniture would be held on December 23, 2003. a broker came from Hyderabad to attend the auction, but all the furniture was withdrawn. The broker from Hyderabad sued the auctioneer for loss of his time and expenses. Which of the following statement(s) is correct?a)The broker can get damages from the auctioneer for loss of his time and expenses.b)The broker will not get damages from the auctioneer for loss of his time and expenses.c)An invitation to make offer is a valid offer.d)A declaration of intention by a person will give right of action to another.Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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