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Consider the following statements: In Bhagvandas Goverdhandas Kedia v. Girdharilal Parshottamdas and…

In Bhagwandas Goverdhandas Kedia v. Girdharilal Parshottamdas, the majority held that section 4 does not mean the contract is made qua the proposer at one place and qua the…

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Consider the following statements:
In Bhagvandas Goverdhandas Kedia v. Girdharilal Parshottamdas and Co. it was laid down that
1. Section 4 of the Indian Contract Act, 1872 does not imply that the contract is made qua the proposer at one place and qua the acceptor at another place.
2. the communication of acceptance should be from a person who has the authority to accept. Information received from an unauthorized person is ineffective.
Which of the statements given above is/are correct?

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Answer and explanation

Correct answer A

In Bhagwandas Goverdhandas Kedia v. Girdharilal Parshottamdas, the majority held that section 4 does not mean the contract is made qua the proposer at one place and qua the acceptor at another; the requirement that communication come from an authorised person is instead drawn from Powell v. Lee.

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