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    Formation of Contract

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    Sanskar Khowal
    An agreement is necessary to form a legally binding contract. Mr. Pushkar made the highest bid of 75 lakhs for a property auctioned by Mr. Ayush, but Mr. Ayush did not accept the bid due to doubts about Mr. Pushkar's ability to pay. Mr. Pushkar sued Mr. Ayush, claiming a contract had been formed when he made the highest bid. However, the court ruled that auctions are invitations to offer, not binding agreements, and no contract was formed since Mr. Ayush refused the offer. Therefore, Mr. Ayush won the suit.

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    Formation of Contract

    Uploaded by

    Sanskar Khowal
    27 views1 page
    An agreement is necessary to form a legally binding contract. Mr. Pushkar made the highest bid of 75 lakhs for a property auctioned by Mr. Ayush, but Mr. Ayush did not accept the bid due to doubts about Mr. Pushkar's ability to pay. Mr. Pushkar sued Mr. Ayush, claiming a contract had been formed when he made the highest bid. However, the court ruled that auctions are invitations to offer, not binding agreements, and no contract was formed since Mr. Ayush refused the offer. Therefore, Mr. Ayush won the suit.

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    FORMATION OF CONTRACT

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    An agreement is necessary to form a legally binding contract. Mr. Pushkar made the highest bid of 75 lakhs for a property auctioned by Mr. Ayush, but Mr. Ayush did not accept the bid due to doubts about Mr. Pushkar's ability to pay. Mr. Pushkar sued Mr. Ayush, claiming a contract had been formed when he made the highest bid. However, the court ruled that auctions are invitations to offer, not binding agreements, and no contract was formed since Mr. Ayush refused the offer. Therefore, Mr. Ayush won the suit.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    27 views1 page

    Formation of Contract

    Uploaded by

    Sanskar Khowal
    An agreement is necessary to form a legally binding contract. Mr. Pushkar made the highest bid of 75 lakhs for a property auctioned by Mr. Ayush, but Mr. Ayush did not accept the bid due to doubts about Mr. Pushkar's ability to pay. Mr. Pushkar sued Mr. Ayush, claiming a contract had been formed when he made the highest bid. However, the court ruled that auctions are invitations to offer, not binding agreements, and no contract was formed since Mr. Ayush refused the offer. Therefore, Mr. Ayush won the suit.

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    © All Rights Reserved
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    FORMATION OF CON TRACTS

    The presence of an agreement is the first requirement for the fo _


    mation of a legally binding contract. Mr Ayush puts up a propert
    for sale at an auction. Mr Pushkar makes a bid off 75 lakhs, whic~
    was the highest bid. Mr Ayush did not accept the bid because he
    was doubtful of the ability of Mr Pushkar to pay the amount of the
    bid. This matter was brought to the court, where Mr Pushkar was
    the plaintiff and Mr Ayush was the defendant.
    Mr Pushkar claimed that he and Mr Ayush had entered into a
    legally binding contract be9ause he had made the highest bid. The
    court heard both the parties and pronounced the following judge-
    ment:
    Bidders at any auction are entitled to make an offer but that offer
    may or ·may not be accepted by the seller. In other words, auctions
    are an invitation to offer. Therefore, it was held that no agreement
    was reached because the seller refused the offer made by Mr
    Pushkar. The court held that no legally enforceable contract was
    entered into because there was a lack of agreement. Mr Ayush
    won the suit. Hence, an invitation to offer does not give rise to any
    rights or obligations.

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