Bengal Coal Co. v. Homee Wadia & Co.

Citation: (1899) ILR 24 Bom 97

A agreed in writing to supply coal to B at certain prices and up to a stated quantity, or in any quantity which may be required for a period of twelve months, is not a contract unless B binds himself to take some certain quantity, but a mere continuing offer which may be accepted by B from time to time by ordering goods upon the terms of the offer. In such a case, each order given by B is an acceptance of the offer and A can withdraw the offer, or, to use the phraseology of the Act revoke the proposal, at any time before its acceptance by an order from B. Such a transaction may be reduced to a statement by the intending vendor in this form If you will send me orders for coal, I shall supply it to you for a period of twelve months at a particular rate.’ This is merely a proposal from A to B. If in reply to such a proposal, B says to A ‘I agree’, it does not constitute an acceptance of the proposal. An acceptance can take place only by B sending an order to A”.

Taken from Mrs. Chand Kunwar and Ors. v. State of Rajasthan

 

Published by Vivek Kumar Verma

B.A.LL.B NUJS 2013, Investment Banking Lawyer, Visual Artist, and Avid Traveler

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