Question:

Apply the given legal principles to the facts provided in the following of the question and select the most appropriate answer.
Principle : Acceptance must be communicated to the offeror to constitute a binding contract. Mere intention to accept, without communication does not lead to a contract.
Facts : J wanted to purchase her uncle T’s television. J wrote a letter to T indicating that she wished to purchase his television for ₹5,000. T was pleased with J’s offer and decided to call J to accept the offer. T called J twice, but J did not pick up her phone. The next day, T found a buyer for the television for ₹6,000 and sold the television to this buyer. J is alleging breach of contract.

  • J will be unsuccessful because even though the contract was binding, T found a buyer who offered a higher price for the television
  • J will be successful because T’s action of calling J is equivalent to communication of acceptance
  • J will be successful because T was happy with J’s offer and had intended to accept
  • J will be unsuccessful since T’s acceptance had not been communicated to constitute a binding contract
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The Correct Option is D

Solution and Explanation

To resolve the legal issue at hand, it is essential to apply the principal legal notion concerning acceptance in the formation of contracts: for a contract to be binding, acceptance of the offer must be effectively communicated to the offeror.

In the given scenario, J sought to purchase T's television and communicated her offer. T, pleased with the offer, attempted to accept it by calling J. However, J did not answer the phone calls, and thus, T's acceptance was not communicated to J. Consequently, no contract was formed because T's acceptance was not known to J, falling short of the requirement that acceptance must be communicated.

Given these facts and the legal principle provided, the correct resolution to the issue is that J will be unsuccessful in her claim of breach of contract. This is because the acceptance was not communicated, and therefore, the essential requirement for a contract was not met. This analysis leads us to select the most appropriate answer:

J will be unsuccessful since T’s acceptance had not been communicated to constitute a binding contract.

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