NOTES


CA-Foundation > Business Laws > The Indian Contract Act, 1872 - Offer and Acceptance (Old & New)

"Snow White" Soap Co. advertised that it would give a reward of ₹ 1,000 who developed skin disease after using, "Snow White" soap of the company for a certain period according to the printed directions. Miss Ruhi purchased the advertised "Snow White" and developed skin disease in spite of using this soap according to the printed instructions. She claimed reward of ₹ 1,000. The company refused the reward on the ground that offer was not made to her and that in any case she had not communicated her acceptance of the offer. Decide whether Miss Ruhi can claim the reward or not. Refer the relevant case law, if any.



Ans.
Miss Ruhi can claim the reward.
An offer may be specific or general
When an offer is made to a specific person or a group of specific persons (for example an offer to doctors), is called a specific offer. When the offer is addressed to public at large, it is called a general offer. A specific offer can be accepted by the specific person only, while a general offer can be accepted by any member of the general public.
Examples:
The Carbolic Smoke Ball Co., issued an advertisement in which the Company offered to pay pound 100 to any person who contracts influenza, after having used their smoke balls three times daily for two weeks, according to the printed direction. Mrs. Carlill, on the faith of the advertisement, bought and used the balls according to the directions, but nevertheless suffered from influenza. She sued the company for the promised reward. The company was held liable. [Carlill v. Carbolic Smoke Ball Co., (1893) 10 B 256]

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Notes of The Indian Contract Act, 1872 - Offer and Acceptance (Old & New)



  1. What are the different types of offers? Explain.
    see in detail

  2. Aadarsh Dayal started 'self service’ system in his shop. Smt. Pavan entered in the shop, took a basket and after taking articles of her choice into the basket reached the cashier for payments. The cashier refuses to accept the price. Can Aadarsh Dayal be compelled to sell the said articles to Smt. Pavan? Decide.
    see in detail

  3. State the points of distinction between Offer and Invitation to offer.
    see in detail

  4. "Snow White" Soap Co. advertised that it would give a reward of ₹ 1,000 who developed skin disease after using, "Snow White" soap of the company for a certain period according to the printed directions. Miss Ruhi purchased the advertised "Snow White" and developed skin disease in spite of using this soap according to the printed instructions. She claimed reward of ₹ 1,000. The company refused the reward on the ground that offer was not made to her and that in any case she had not communicated her acceptance of the offer. Decide whether Miss Ruhi can claim the reward or not. Refer the relevant case law, if any.
    see in detail

  5. Daamodar proposed to sell his house to Kaashinaath . Kaashinaath sent his acceptance by post. Next day, Kaashinaath sends a telegram withdrawing his acceptance. Examine the validity of the acceptance in the light of the following:
    1) The telegram of revocation of acceptance was received by Daamodar before the letter of acceptance.
    2) The telegram of revocation and letter of acceptance both reached together.

    see in detail


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