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

Rakesh sends Sunita an email offering to sell his flat and adds, 'If I do not hear from you by Monday, I will assume you have accepted.' Sunita does not reply at all. What is the legal position?

No contract is formed. Acceptance requires some communicated act or words from the offeree, and a proposer cannot make silence amount to acceptance. Sunita had no duty to reply, so her silence does not bind her to buy the flat.

  1. AA contract is formed because silence by Sunita is acceptance after the stated deadline
  2. BNo contract is formed because the offeror cannot impose acceptance by silence on the offereeCorrect
  3. CA contract is formed only if Sunita later pays a token amount
  4. DA contract is formed because the email was delivered

Explanation

Acceptance must be communicated by words or conduct of the offeree. A proposer cannot prescribe that silence will amount to acceptance, as this would impose a burden on the offeree who has no duty to reply. Sunita's silence therefore creates no contract.

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