An offer lapses when it is rejeted or a counter offer is made

Karthik.T | Sastra Deemed University Thanjavur | 6th July 2020

Hyde Vs Wrench

FACTS:

In this case, the defendant made an offer to the plaintiff that he is going to sell his house and his property for a sum of 1000 pounds. The offer was conveyed to the defendant. The plaintiff to whom the offer was made agreed to buy his house and his property for 950 pounds. The defendant refused to sell his property for 950 pounds. Subsequently, the plaintiff immediately communicated his acceptance for buying his property for 1000 pounds. When the defendant refused to sell his property the plaintiff filed a suit for breach of contract.

ISSUES:

Whether the act of the defendant amount to breach of contract or not?

PLAINTIFF CONTENTION:

The plaintiff contended that the act of the defendant who refused to sell his property after it is accepted by him is the amount to a breach of contract. And he should pay compensation or he should accept his acceptance to the offer.

DEFENDANT CONTENTION:

The defendant contended that it is only an invitation to offer and there is no contract took place been between the plaintiff and the defendant. So he is not liable to pay any compensation.

OBSERVATION:

The court observed that the plaintiff to whom the offer was made agreed to buy the property for 950 pounds it amount to counter-offer the counteroffer made by the plaintiff the original offer of the defendant has lapsed. Communication of acceptance by the telex of the offer at the old rates when the tender has offered a revised rate before the communication of the acceptance can not be said to conclude the contract. Although an offer made in response to the tender notice which is like an invitation to offer is accepted by the person inviting tender with certain modification the acceptance cannot be termed as a counteroffer. So no contact took place between them.

JUDGMENT:   

The court held that no contract took place as the offer here is just an invitation to everyone. So here the defendant refused to sell his property is not amount to a breach of contract. Hence he is not liable to pay compensation.