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Flow of Presentation
Long silenced
Express or implied rejection
Expiry of time
Revocation of offer before
acceptance
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Long Silence
Shanat offers to sell his computer toVishal for Rs.30000 on the phone
Vishal tells him that he will think it
over and let him know Vishal gets back after 6 months but
Shanat has already sold thecomputer to another person
Vishal claiming that he has formedan agreement by accepting the offer
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Exploration
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A long silence impliedly means
disinterest
When Vishal did not get back toShanat for a long time, Shanat
assumed that Vishal was not
interested in the offer
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Summary
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A long silence implies rejection of an
offer (Ramsgate Victoria HotelCompany Limited vs. Montefiore)
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Expressed rejection of an Offer
Shanat offers to sell a computer toVishal for Rs.30000
Vishal refuses to buy it
Later he comes back and says, Iaccept your offer
But Shanat has sold the computer toanother person.
Has an agreement been madebetween Shanat and Vishal?
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By saying no to the offer, Vishal brought
the offer to an end
Thereafter, Shanat was freed of any futureobligation arising from the offer
Hyde vs. Wrench
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Implied rejection
Shanat offers to sell a computer toVishal for Rs.30000
Vishal shakes his head, puts hishand in his pocket, takes out hishand and shakes it
Later, Vishal comes back and says,I accept your offer
But, Shanat has sold the computer
to another person
Has an agreement been madebetween Shanat and Vishal?
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Exploration
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The shaking of head and hand has
communicated to Shanat that Vishal
did not have money and is rejecting
the offer So, the rejection has been
communicated in an implied manner
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Summary
An offer can get extinguished
by express or implied
rejection
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Expiry of time
Shanat offers to sell his computer toVishal for Rs.30000 and tell him hecould think over it and let him know
by 6 pm, coming Monday Vishal calls Shanat on Tuesday
evening and says, I accept youroffer
Shanat had sold the computer onTuesday morning to another person
Vishal is demanding the computer
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Exploration
Agreements are voluntarily formed
between two parties
Shanat clearly intends that the offer
is valid only till 6 pm, Monday
So, when Vishal comes back, theoffer is already extinguised
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Summary
An offer can get extinguished by expiry
of the time
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Revocation of an Offer
Sunil offers to sell 10 shares of a
company to Arman, as he needs
money to buy a house
Arman is still considering the offer
Meanwhile, Sunil manages to get an
additional loan for buying the house
He doesnt need to sell the sharesnow
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He calls Arman 2 days after
having made the offer and tells
him that the shares are not for
sale any more
Arman insists that Sunil has to
sell the shares to him.
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Exploration
Rights and obligations arisesonly when an agreement isformed
An agreement comes into beingonly on acceptance of an offer
Till then, neither of the parties
have any obligation to oneanother
Pane vs. Cave
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