Question

In: Accounting

3. Xavier is starting an online business called ‘footbook’ that is a social networking website where...

3. Xavier is starting an online business called ‘footbook’ that is a social networking website where people post pictures of their feet. Xavier has a lunch meeting with his sister to discuss whether she would like to invest in the business. He tells her “if I don’t hear from you by 2 Friday I will assume you agree to my offer.” Friday passes and Sally has not contacted Xavier. Can Xavier legally claim the investment money from Sally?

Solutions

Expert Solution

As per the provisions of the Contract Act mere silence cannot be assumed as the acceptance of any contract in the eyes of law i.e such contract which is created through mere silence will be void-ab-initio and is un enforceable.
Any person contracting with the other erson cannot compell to the other person for the contract and cannot apply search condition that if acceptance or non acceptance not made till a date, will count to the acceptance of the contract.

The given case is as :-

Xavier is starting an online business called ‘footbook’ that is a social networking website where people post pictures of their feet. Xavier has a lunch meeting with his sister to discuss whether she would like to invest in the business. He tells her “if I don’t hear from you by 2 Friday I will assume you agree to my offer.” Friday passes and Sally has not contacted Xavier.

The answer this statement is Xavier cannot legally claim the investment money from Sally. As there was no contract between the two of them, because contracts are not based on assumptions.
And such a assumption based contracts are not enforceable by law.


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