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Mercantile law.... doubt

divyalakshmi (student) (153 Points)

03 July 2012

1) acceptance in ignorance of offer is a VALID contract? how

2)explain reciprocal promises and cross offers...

3)acceptance on offer- define

4)what do you mean by collateral transcation?

5)why a contract entered with a pardshanin women is INVALID?

plz explain me with suitable examples... plz

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Jairam J (CA, B.COM(Hons.)) (382 Points)
Replied 03 July 2012

1. Refer case study

G sent S, his servant, to trace his missing nephew. Subsequently, G announced areward for information relating to the boy. S, traced the boy in ignorance of theannouncement regarding reward and informed G. Later, when S came to know of thereward, he claimed it. Held, he was not entitled to the reward on the ground that hecould not accept the offer unless he had knowledge of it [Lalman Shukla v.Gauri Dutt,II, A.L.J. 489].

2. Cross offers-Where two parties make identical offers to each other, in ignorance of each other’s offer,the offers are known as cross-offers and neither of the two can be called an acceptance of theother and, therefore, there is no contract.

Reciprocal promises- Reciprocal promise means a promise in return for a promise. Thus, where a contractconsists of promise by one party (to do or not to do something in future) in consideration ofa similar promise by other party, it will be called a case of reciprocal promises.

3. Acceptance- acceptance is the act of giving consent to the proposal. A proposal when acceptedbecomes a contract. As mentioned above, the offeree is deemed to have given his acceptance when he giveshis assent to the proposal. The assent may be express or implied

Express-A loses his dog and announces a reward of Rs. 50 to anyone who brings his dogto him. B need not convey his acceptance of the general offer. If he finds the dogand gives it to A, he is entitled to the reward as he accepted the offer by doing the required act. Refer also Carlill vs. Carbolic Smoke ball company..

Implied- A enters into a bus for going to his destination and takes a seat. From the very nature of the circumstance, the law will imply acceptance on the part of A.

4. A "collateral contract" is a separate contract which exists alongside the main contract. It can also be explained as : a subsidiary contract that induces a person to enter into a main contract. For example: if X agrees to buy goods from Y made to Z, and does so on the strength of Z’s assurance as to the high quality of the goods, X and Z may be held to have made a collateral contract consisting of Z’s promise to quality given in consideration of X’s promise to enter into the main contract with Y.

5. Pardanashin woman is one who according to the custom of her community observescomplete seclusion. The Courts in India regard such women as being especially open to undueinfluence. When, therefore, an illiterate pardanashin woman is alleged to have dealt with herproperties and to have executed a deed, the burden of proving that there was no undue influence lies on the party setting up the deed. The law demands that the person who deals with a pardanashin lady must show affirmatively and conclusively that the deed was not only executed by, but was explained to, and was really understood by the lady.

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