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'A' by a letter offers to sell his car to 'B' for Rs. 75,000/-. At the same time, 'B' by a letter,…

The letters are independent cross-offers. Neither writer knew of and assented to the other's proposal when posting the letter, so identical terms do not by themselves…

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'A' by a letter offers to sell his car to 'B' for Rs. 75,000/-. At the same time, 'B' by a letter, which crosses the above letter while in post, offers to buy the car for Rs. 75,000/-. In this context, which one of the following propositions is correct?

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Answer and explanation

Correct answer C

The letters are independent cross-offers. Neither writer knew of and assented to the other's proposal when posting the letter, so identical terms do not by themselves produce acceptance under sections 2(b) and 4 of the Indian Contract Act. Receiving a cross-offer also does not automatically convert the recipient's earlier offer into an acceptance. So no contract results from these letters alone, though a later communicated acceptance could create one.

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