• Contract law

A offers to sell a car for $50,000 to B. A sends a telex to B. B sends a post to accept the offer on the same day, but to a wrong address. So he sends another telex to A the next day but A fails to notice it as he is late to work. A receives another offer of $60,000 from C which A accepts. A sends a revocation to B at a time he knows B won't see the telex. B receives telex the next day. He sends a telex to A but A refuses to sell it to B. So B sues A for breach of contract. How to advise these parties? Is there any contract formed?
Asked 4 years ago in Business Law from Delhi, Delhi
for contract there must be an offer and acceptance.if there is no offer or no acceptance the there is no contract
Rajeev Bari
Advocate, New Delhi
1506 Answers
92 Consultations

4.6 on 5.0

it appears to be a query for some assignment given to you . 

once A offer is accepted by B a contract has been entered into by parties . it is immaterial whether A saw it on same day or later . A cant sell car to C . if A has sold car to C breach of contract has taken place and A can be sued for damages under the contract
Ajay Sethi
Advocate, Mumbai
45474 Answers
2672 Consultations

5.0 on 5.0

There is no meeting of mind between A and B. Hence there is no binding contract between A and B. A can sell his car to C.
Sai Kiran R
Advocate, Bangalore
86 Answers
6 Consultations

4.5 on 5.0

when acceptance of offer is put through course of transmission the contract is complete. In this case when B sends telex to A the contract is complete.
H. S. Thukral
Advocate, New Delhi
568 Answers
169 Consultations

5.0 on 5.0

The contract came into existence as soon as B sent the telex to A notwithstanding the fact that A did not notice it. Hence, it follows that A could not have sold it to C.
Ashish Davessar
Advocate, Jaipur
22977 Answers
634 Consultations

5.0 on 5.0

Ask a Lawyer

Get legal answers from top-rated lawyers in 1 hour. It's quick, easy, and anonymous!
  Ask a lawyer