Legal Principle: A contract requires a proposal and an acceptance of the proposal. It is necessary to make a binding contract, not only that the proposal be accepted, but also that the acceptance is notified to the proposer.Factual Situation: X gives to Y ' 300 to be given to Z. Y informs Z that he is holding the money for him. But afterwards Y refuses to pay the money. Z sues Y for the money. Y contends that Z cannot sue as he was not a party to the contract.Issue: Will the contention of Y be upheld?Decision:

Questions provided here are based on Civil Law. Read the Legal Principle carefully, understand the factual situation and then attempt the question by choosing the appropriate decision.