Acceptance of a conditional offer with a further condition does not result in a concluded contract.

Last updated: 21 January 2021

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Quick Summary

This Supreme Court judgement clarifies whether accepting a conditional offer, but adding a further condition, leads to a finalised contract. The court considered a case where a port trust invited tenders for wooden sleepers. The appeal examined if the acceptance of a conditional offer, with an additional stipulation by the acceptor, constituted a binding agreement.

Court :
Supreme Court of India

Brief :
The short question involved in this appeal is, whether the acceptance of a conditional offer with a further condition results in aconcluded contract, irrespective of whether the offerer accepts thefurther condition proposed by the acceptor. This question does notappear to have been addressed by the High Court or the Court below.

Citation :
CIVIL APPEAL NO.7469 OF 2008

IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO.7469 OF 2008

M/s. Padia Timber Company(P) Ltd. …Appellant

versus

The Board of Trustees of Visakhapatnam
Port Trust Through its Secretary …Respondent

J U D G M E N T

Indira Banerjee, J.

The short question involved in this appeal is, whether the acceptance of a conditional offer with a further condition results in aconcluded contract, irrespective of whether the offerer accepts thefurther condition proposed by the acceptor. This question does notappear to have been addressed by the High Court or the Court below.

2. This appeal is against a common Judgment and Order dated10.10.2006 passed by the High Court of Judicature at Hyderabad in Appeal Nos.2196 and 2197 of 2000 confirming a Judgment and Order dated 31.3.2000 of the Additional Senior Civil Judge, Visakhapatnam allowing the suit being O.S. No.106 of 1993 filed by the Respondent- Port Trust against the Appellant for damages, and dismissing O.S. No.450 of 1994 filed by the Appellant for refund of earnest deposit.

3. On or about 17.7.1990, the Respondent-Port Trust floated atender for supply of Wooden Sleepers. The tenders were due to be opened on 01.08.1990.

To know more in details find the attachment file

FAQ :

The main legal question is whether the acceptance of a conditional offer, with an additional condition proposed by the acceptor, results in a concluded contract.

The original tender, floated by the Respondent-Port Trust, was for the supply of Wooden Sleepers.

The High Court confirmed a judgment allowing the Respondent-Port Trust's suit for damages and dismissing the Appellant's suit for a refund of earnest deposit.

No, the judgement states that the question of whether accepting a conditional offer with a further condition results in a concluded contract does not appear to have been addressed by the High Court or the lower court.

Attached File : 40_3203_5298_2007_35_1501_25342_judgement_05_jan_2021.pdf

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