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CA Foundation · Business Laws · The Indian Contract Act, 1872

Kavita offers to sell her flat to Lalit for Rs 50 lakh and writes, 'If I do not hear from you by Friday, I shall take it that you have accepted.' Lalit does not reply and stays silent. What is the legal position?

No contract is formed. Acceptance must be communicated by the offeree by words or conduct, and an offeror cannot force a duty to reply or turn silence into acceptance. Lalit's silence is not assent, so he is not bound and need not send any rejection.

  1. AA contract is formed, because the offeror fixed silence as the mode of acceptance
  2. BA contract is formed, because Lalit did not reject the offer within the time given
  3. CNo contract is formed, because an offeror cannot impose on the offeree a duty to reply and silence is not acceptanceCorrect
  4. DNo contract is formed only if Lalit later informs Kavita in writing that he rejects the offer

Explanation

Acceptance must be communicated by the offeree through some act or word showing assent. The offeror cannot make the offeree's silence amount to acceptance. Lalit has not communicated anything, so there is no contract, and he need not send any rejection.

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