'A' asked 'B', "I want to purchase your bike. What will be the cost"? 'B' replied that the cost will not be less than Rs. 20,000. 'A' was interested to purchase it for Rs. 20,000. Which one of the following statement is correct?
Verified Answer
A. There was a proposal which was accepted
B. There was neither a proposal nor an acceptance
C. There was proposal but no acceptance
D. There was a counter offer which was accepted
Explanation:
'A' asking 'What will be the cost?' is merely an inquiry, not an offer. 'B's' reply 'not less than Rs. 20,000' is a statement of price or an invitation to offer, not a definite offer. 'A' being 'interested to purchase it for Rs. 20,000' could be considered an offer, but it was not accepted by 'B'. Therefore, no valid proposal and acceptance, which are essential for a contract, have occurred.