Question:

Ramu applied for the post of Director in an organization. The governing body of the organization passed a resolution appointing him to the post. After the meeting, one of the members of the governing body informed him privately of the resolution. Subsequently, the resolution was rescinded. Ramu claims damages. Which one of the following is the correct legal proposition in the case?

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In employment and appointment matters, only official communication creates enforceable rights — informal or private information has no legal effect.
Updated On: Aug 11, 2025
  • Ramu cannot claim damages as he had not resigned from his existing post in anticipation of getting the appointment letter
  • Ramu cannot claim damages as there was no formal communication
  • Ramu can claim damages as governing body cannot rescind the resolution once passed
  • Ramu can claim damages as there was private oral communication
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The Correct Option is B

Solution and Explanation

Step 1: Under contract law principles, a formal offer or appointment must be officially communicated to be effective.
Step 2: Private information given by a member is not considered an official communication from the organization.
Step 3: Since no formal communication was made before the resolution was rescinded, no binding contractual obligation arose, and Ramu cannot claim damages.
Thus, option (b) is correct.
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