A offers to sell his car to B for Rs. 3 lakhs. B says, “I accept your offer. Here
Rs. 2 lakhs in cash and a 3 months promissory note for the balance”. Is there any
contract between A and B? Give reasons.
Answers
Answer:
offers to sell his car to B for Rs. 3 lakhs. B says, “I accept your offer. Here
Rs. 2 lakhs in cash and a 3 months promissory note for the balance”. Is there any
contract between A and B? Give reasons.
6+9
A v
Answer:
There is a contract between A and B based on the abovementioned scenario. Hence, the answer will be yes, it is a contract.
Explanation:
We already are aware that all contracts are agreements but all agreements are not contracts. The basic rule for a contract is an agreement between two or more parties. Both of them should be an adult as well as should have consent.
Now, the thing that makes a contract different from an agreement is legality. A contract can be verbal or written as long as it has the potential to be legally bound. In simpler terms, an agreement that can be enforceable by law is said to be a contract.
The abovementioned scenario talks about an agreement between a buyer and a seller and the transfer of money is taking place at the same time. It is not only enforceable by law but also the members involved are adults and have agreed on the decision by themselves. Hence, we can conclude that the abovementioned scenario is a contract between A, the seller, and B, the buyer.
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