Principle When an offer is accepted by a person to whom it is made it becomes a promise But thi...........

Indian Contract Act (ICA)1872 Formation of Contract

Principle: When an offer is accepted by a person to whom it is made, it becomes a promise. But this promise will become legally binding only when the acceptance of the offer is unconditional.

Facts: Ram makes an offer to sell his house to Shyam for Rs.50 lacs. Shyam accepts this offer but wants to pay the price of the house in five quarterly instalments. Ram does not agree to it. Thereafter Shyam agrees to pay the price of the house in the way as originally desired by Ram. But Ram does not reply to it. Can Shyam compel Ram to sell his house to him?

Shyam can compel Ram to sell his house because Shyam ultimately agrees to pay the price as originally desired by Ram.

Shyam can compel Ram to sell his house because Shyam in the first instance substantially complied with the desire of Ram

Shyam can compel Ram to sell his house because Ram’s offer does not exclude the payment of price in instalments

Shyam can not compel Ram to sell his house because Shyam imposes a new condition about payment of price of the house while accepting the offer which is not ultimately accepted by Ram.

Explanation:

As per the principle, a promise is legally binding only when acceptance is unconditional. Shyam's acceptance was accompanied by another condition which amounts to counter offer. Hence, Shyam cannot compel Ram to sell his house. An offer must be accepted in the currency of the offer. When the original offer was made the condition of payment by Shyam, it amounted to a counter offer not an acceptance. Since the original offer was replaced by a counter offer, it came to an end and Shyam cannot insist on the acceptance of an offer which has come to an end.