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Doubt regd valid contract...

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A offers to sell 80 quintals of sugar to B at a certain price, B accepts to buy 50 quintals. Is it a valid contract? in one book it is said..its valid.., but my doubt is acceptance must not be conditional... then how can this contract will be valid?... Please clarify...

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CMA. CS. Sanjay Gupta ("PROUD TO BE AN INDIAN") (114215 Points)
Replied 03 May 2012

For a valid contract both the party must agree to the sontent of the contract. If A says 80 Quintal and B says 50 quintal and A accepts that counter offer of 50 Quintal then only the contract will be valid.

Acceptance must be absolute and unqualified. (Section 7). An acceptance to be valid must be absolute and unqualified and according to the exact terms of the offer. An acceptance with a variation, however slight, is no acceptance, and may amount to a mere counter offer which the original offeror may or may not accept.

A offers to sell his house to B for Rs. 1,000. B replies, “I can pay Rs. 800 for it.” The offer of A is rejected by B as the acceptance is not unqualified. However, B subsequently changes his mind and is prepared to pay Rs. 1,000. This will also be treated as a counter offer and it is up to A whether to accept the same or not [Union of India v. Babulal, A.I.R. 1968 Bombay 294.].

So in the given case B is not accepting but just giving an counter offer to A which, if accepted by A, will become valid contract.

Hope its clear now.....

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