Defendant offered to sell a house on 25.11.1989 to the plaintiff for Rs. 90,000. On 10.12.1989, the plaintiff made an offer of Rs. 80,000. This offer was refused by Defendant............. Breach of Contract. How would you decide?

Question: Defendant offered to sell a house on 25.11.1989 to the plaintiff for Rs. 90,000. On 10.12.1989, the plaintiff made an offer of Rs. 80,000. This offer was refused by Defendant-owner on 15.12.1989. On 20.12.1989, the plaintiff wrote to the Defendant that he was now prepared to pay Rs. 90,000/-. The defendant-owner refused to sell the house. The plaintiff filed a suit against the defendant for Breach of Contract. How would you decide? Your reasons. [DJS 1991]

Find the answer to the mains question of the Law of Contract only on Legal Bites. [Defendant offered to sell a house on 25.11.1989 to the plaintiff for Rs. 90,000. On 10.12.1989, the plaintiff made an offer of Rs. 80,000. This offer was refused by Defendant-owner on 15.12.1989. On 20.12.1989, the plaintiff wrote to the Defendant that he was now prepared to pay Rs. 90,000/-. The defendant-owner refused to sell the house. The plaintiff filed a suit against the defendant for Breach of Contract. How would you decide? Your reasons.]

Answer

The Indian Contract Act governs the formation and enforcement of contracts in India. In this case, we'll examine the elements of a valid contract and determine whether a contract was formed between the plaintiff and the defendant.

Offer: The defendant offered to sell the house to the plaintiff on 25.11.1989 for Rs. 90,000. An offer must be clear, definite, and communicated to the offeree.

Acceptance: On 10.12.1989, the plaintiff made a counteroffer of Rs. 80,000. A counter-offer is a rejection of the original offer and constitutes a new offer. As a result, the original offer of Rs. 90,000 was no longer open for acceptance.

Rejection: The defendant refused the plaintiff's counter-offer on 15.12.1989. When a counteroffer is rejected, the original offer cannot be revived.

Revival of the Original Offer: On 20.12.1989, the plaintiff wrote to the defendant, expressing his willingness to pay the original offer price of Rs. 90,000. However, since the plaintiff had made a counter-offer that was rejected by the defendant, the plaintiff's attempt to revive the original offer of Rs. 90,000 is ineffective. The defendant is not obligated to accept the revised offer.

Considering these factors, it appears that a valid contract was not formed between the plaintiff and the defendant. The plaintiff's counter-offer of Rs. 80,000 acted as a rejection of the defendant's original offer of Rs. 90,000. When the defendant refused the counteroffer, the original offer was not revived, and the defendant had no obligation to accept the plaintiff's subsequent attempt to pay Rs. 90,000.

Therefore, it is unlikely that the plaintiff would succeed in a breach of contract claim based on the given facts.