‘A’, by letter, offers to sell his house to ‘B’ for Rs.2,00,000. Without knowing of ‘A’s offer, ‘B’, by a letter, offers to buy the same house from ‘A’ for
a) No binding contract comes into existence as ‘B’s letter is merely a cross-offer.
b) No binding contract comes into existence as consideration in this contract is insufficient.
c) A binding contract comes into existence as ‘B’s letter is equivalent to acceptance of ‘A’s offer.
d) The Indian Contract Act is silent on such issues.
2. Legal Principle:
In a contract with a minor, if the other party hands over any money or confers any other benefit on the minor, the same shall not be recoverable from the minor unless the other party was deceived by the minor to hand over money or any other benefit. The other party will have to show that the minor misrepresented her age, he was ignorant about the age of the minor and that he handed over the benefit on the basis of such representation. Factual Situation:
A, aged 16, agreed to purchase a second-hand motorcycle from B for Rs.12,000. He paid Rs.2000 as advance and agreed to pay the balance the next day and collect the motorcycle. When A came with the money the next day, B says that he has changed his mind and offered to return the advance. Issue:
Can B do so? Decision:
a) Yes, because the agreement with a minor is void.
b) No, B cannot avoid the agreement simply because A is a minor and an agreement with minor is void although A is a, minor but law does not prevent him from becoming a promisee or beneficiary
c) Neither(a) nor (b)