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

In Bhagwandas Goverdhandas Kedia v. Girdharilal Parshottamdas and Co. (1966), the Supreme Court held that Section 4 of the Indian Contract Act does not imply that the…

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Consider the following statements. In Bhagwandas Goverdhandas Kedia v. Girdharilal Parshottamdas and co., it was laid down that:
I. 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.
II. 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 and Co. (1966), the Supreme Court held that Section 4 of the Indian Contract Act does not imply that the contract is made at one place for the proposer and at another for the acceptor, the contract being concluded where the acceptance is communicated to the proposer, so the answer is "I only".

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