PRINCIPLE when one person signifies to another his willingness to do or to abstain from doing anythi...........

Indian Contract Act (ICA)1872 Formation of Contract

PRINCIPLE: when one person signifies to another his willingness to do or to abstain from doing anything, with a view to obtaining the assent of that other to such act or abstinence, he is said to make a proposal.

FACT: Ramanuj telegrammed to the shyamsunder, writing “will you sell me your Rolls Royce Car? Telegram the lowest cast price”. Shyamsunder replied, too by telegram “lowest price for car is Rs. 20 lacs”. Ramanuj immediately sends his consent through telegraph stating, ‘I agree to buy the car for Rs. 20 lacks asked by you. Now shyamsunder refused to sell the car. .

He cannot refuse to sell the car because the contract has already been made.

He can refuse to sell the car because it was only invitation to offer and not the real offer.

it was not a valid offer because willingness to enter into a contract was absent.

none of the above.

Explanation:

An invitation to offer is one where a person solicits an offer. Here Shyamsunder only informs him the lowest price he is willing to consider offers at, he does not agree to sell the car. Therefore it is only an invitation to sell.