Question

In: Accounting

(i) A offers to sell his goods to B by a letter posted on 1st March....

(i) A offers to sell his goods to B by a letter posted on 1st March. B receives A 's letter on 3rd March. Can A revoke his offer? (ii)B posts his letter of acceptance on 4th March. A receive B's acceptance on 6th March. Can B revoke his acceptance?

Solutions

Expert Solution

A can revoke his offer to sell goods to B anytime before the communication of its acceptance by B is complete against A, but not afterwards.

Communication of acceptance against the proposer is complete when it is put in the course of transmission to him so as to be out of the power of acceptor.

In the given case, 4th March is the communication of acceptance against the proposer i.e. A. A can revoke his offer before completion of the communication of acceptance against him i.e. 4th March (date of putting acceptance in transmission).

The communication of acceptance is complete against the acceptor when it comes to the knowledge of the proposer.

Acceptance of offer can be revoked anytime before the communication of the acceptance is completed against the acceptor, but not afterwards.

In the given case, 6th March is the date when The proposer i.e. A comes into the knowlege of acceptance by B.

B can revoke his acceptance before A comes into the knowledge of it i.e. 6th March.

A can revoke his offer before B posts his letter of acceptance i.e. 4th March.

B can revoke his acceptance before the letter of acceptance reaches A i.e. 6th March.

( The solution is made by following the provisions of Indian Contract Act, 1872)


Related Solutions

Malcolm has written a letter to his close friend, Linda. In the letter he offers to...
Malcolm has written a letter to his close friend, Linda. In the letter he offers to sell her his sports car for $4,500. Linda calls Malcolm and explains that she needs some time to think it over as she had not planned to buy a car soon. Malcolm tells her, “I’ll give you until Monday July 19 to let me know whether you want the sports car.” On Thursday July 15, Linda posts a letter to Malcolm agreeing to buy...
Shiva & Sons Limited Commenced business on 1st March 2014 making his accounts to coincide with...
Shiva & Sons Limited Commenced business on 1st March 2014 making his accounts to coincide with that of the government . The following assets were bought and used in the business Assets Date of Purchase Amount GHS Plant and machinery 30/04/2014 120,000 Motor Vehicle: Toyota (GT 4002-16) 29/12/2014 90,0000 2 Computers 11/08/2014 50,000 Furniture and Fittings 15/03/2014 40,000 Office Buildings 03/02/2014 150,000 Assets Date of Purchase Amount Motor Vehicle : BMW (UT 366-16) 06/05/2015 350,000 Addition of Building 15/01/2015 80,000...
I posted this question earlier but I don't quite understand the development for part b) and...
I posted this question earlier but I don't quite understand the development for part b) and c). I need some details because it's really not obvious for me. Part a) is good. The question is : We start the operation of a reversible Carnot Engine between two reservoir of temperature T1 and T2 where T2 > T1. The colder reservoir is so cold that his temperature doesn't change during the process of the engine. The hotter reservoir is composed of...
Sam Seller offers to sell his home to Pat Purchaser for the sum of $160,000. Pat...
Sam Seller offers to sell his home to Pat Purchaser for the sum of $160,000. Pat Purchaser responds that she will only purchase the home for $150,000. Sam Seller rejects Pat Purchaser’s offer to purchase for $150,000. Pat Purchaser then offers $160,000 for Sam Seller’s home. Is there a contract between Sam Seller and Pat Purchaser for the sale and purchase of the home at $160,000?
Analyze the following three situations: Aaron offers to sell his house in Chicago to Brian for...
Analyze the following three situations: Aaron offers to sell his house in Chicago to Brian for $500,000. Unknown to Aaron, Aaron’s uncle has died and left him a house in Chicago worth $5 million. Brian hears of the uncle’s death, agrees to the offer, and then sues Aaron to have Aaron convey the more expensive property. Is there a contract? Support your answer Every year the Muscular Dystrophy Foundation has a telethon to raise money. In the heat of the...
(b) Demonstrate modes of operation for Letter of Credit-i based on Murabahah concept.
(b) Demonstrate modes of operation for Letter of Credit-i based on Murabahah concept.
(b) Demonstrate modes of operation for Letter of Credit-i based on Wakalah concept.
(b) Demonstrate modes of operation for Letter of Credit-i based on Wakalah concept.
I need the answers simple and in order please!!! go with the letter a,b,c etc. Ahmadi,...
I need the answers simple and in order please!!! go with the letter a,b,c etc. Ahmadi, Inc. manufactures laptop and desktop computers. In the upcoming production period, Ahmadi needs to decide how many of each type of computers should be produced to maximize profit. Each computer goes through two production processes. Process I, involves assembling the circuit boards and process II is the installation of the circuit boards into the casing. Each laptop requires 24 minutes of process I time...
I need the answers simple and in order please!!! go with the letter a,b,c etc. Ahmadi,...
I need the answers simple and in order please!!! go with the letter a,b,c etc. Ahmadi, Inc. manufactures laptop and desktop computers. In the upcoming production period, Ahmadi needs to decide how many of each type of computers should be produced to maximize profit. Each computer goes through two production processes. Process I, involves assembling the circuit boards andprocess II is the installation of the circuit boards into the casing. Each laptop requires 24 minutes of process I time and...
Jacinto consumer two goods: A and B, his preferences can be represented by the Cobb-Douglas function:...
Jacinto consumer two goods: A and B, his preferences can be represented by the Cobb-Douglas function: U (XA, XB) = 2XA * XB2, where XA represents the units consumed of good A and XB the units consumed of good B. Consider generic prices for the goods PA, PB and an income of m A) Find Jacinto's demand functions for good A and B B) if PA = 60, PB = 90 and m = 540: i. What are the optimal...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT