Fact: D wrote to P on 28 November 1971, offering to sell 800 tonnes of iron at Rs 6900 per ton. On the same day P wrote to D offering to buy 800 tonnes of iron Rs 6900 per ton. The two letters crossed in post and neither of them knew anything about the offer to the other. P contended that there was a good contract. Issue: What is the nature of contract and liabilities of the parties?

Question

Multiple choice

Fact: D wrote to P on 28 November 1971, offering to sell 800 tonnes of iron at Rs 6900 per ton. On the same day P wrote to D offering to buy 800 tonnes of iron Rs 6900 per ton. The two letters crossed in post and neither of them knew anything about the offer to the other. P contended that there was a good contract. Issue: What is the nature of contract and liabilities of the parties?

It is a voidable contract at the option of P because P had offered to sell the product.
It is a voidable contract at the option of P because P had offered to buy the product.

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Accepted Answer

There was no valid contract because an agreement results into a contract when there is an offer from one side and its acceptance from the other side so no question of any liability rises.

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