Section 10 of the Indian Contract Act, 1872 provides "all agreements are contracts if they are made by the free consent of parties competent to contract, for a lawful consideration and with a lawful object, and are not h

CS Executive · Jurisprudence, Interpretation and General Laws · PYQS · December 2025
Section 10 of the Indian Contract Act, 1872 provides "all agreements are contracts if they are made by the free consent of parties competent to contract, for a lawful consideration and with a lawful object, and are not hereby expressly declared to be void". To form a valid contract there must be an agreement which is based on the genuine consent of the parties, supported by a lawful consideration, for a lawful object between the competent parties. One of the early steps in the formation of a contract lies in arriving at an agreement between the contracting parties by means of an offer and acceptance. A proposal is also termed as an offer. The word 'proposal' is synonymous with the English word "offer". The person making the proposal or offer is called the proposer or offeror and the person to whom the proposal is made is called the offeree. There are several kinds of proposal. An offer must be clear, definite, complete and final. It must not be vague. An offer must be communicated to the offeree. The communication of an offer may be made by express words—oral or written, or it may be implied by conduct. A contract emerges from the acceptance of an offer. Acceptance is the act of assenting by the offeree to an offer. Under Section 2(b) of the Contract Act when a person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted. A proposal, when accepted becomes a promise. An acceptance never precedes an offer. There can be no acceptance of an offer which is not communicated. In reference of the above statement answer the following questions: (i) Anil offered Brijesh to sell his house for a price of ₹1,00,000 but Brijesh offered to buy it for ₹95,000 only. Later, Anil sold the house to Pritam for ₹1,00,000. Brijesh filed a suit on Anil claiming for damages under the breach of contract. Discuss the legality of Brijesh's claim for damages for the breach of contract.

Answer & Explanation:

There are several kinds of offers. One of them is counter offer. A counter offer occurs when the offeree varies or modifies the terms of the original offer. A counter offer amounts to rejection of the original offer and puts forward a new offer. A contract can arise only if the counter offer is accepted. As per the settled principle of contract law, a counter-offer amounts to rejection of the original offer. In the given situation, there was no concluded contract as Brijesh put forward a counter offer to Anil's offer. Here Anil can sell his property to Pritam. Brijesh will not be able to receive any damages due to breach of contract and his suit would fail.

Topics: Indian Contract Act, 1872

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