Multiple choice

Directions: Given below is a statement of principle, followed by a factual situation. Apply the principle to the facts and select the most appropriate answer among three alternatives given. Encircle your choice and explain why you think your answer is correct in not more than 3 to 4 lines. If it exceeds 4 lines, then penalty may be imposed.

Principle 1: Acceptance of an offer is complete when the acceptance is put into the course of transmission so as to be out of the power of the acceptor. Principle 2: Acceptance once completed makes the agreement binding on both the parties. Fact: A accepts to by B's offer of his motor car for Rs. 4 lakhs. The acceptance we put into e-mail. Unfortunately, when the e-mail was put, there is distortion as a result of which B is not in a position to really read what A has written.

  1. Both the parties are bound to perform their part of the agreement.

  2. Nobody is bound to perform the agreement.

  3. A is bound to perform the agreement but not B.

  4. B is bound to perform the agreement but not A.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

(1) strictly applying the principle, the minute the email leaves A's computer, it is out of his control, which means acceptance is complete. Consequently, the agreement is binding on both the parties.

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