Legal Principle: Knowledge of the offer to the person to whom it is signified and its acceptance by the same person results into contract.Factual Situation: The board of managers of a school resolved to appoint P as headmaster. One of the managers, in his individual capacity, informed P of the same. But there was no formal communication of the resolution by the board. The board later rescinded the resolution. Issue: What is the nature of contract and liability of the board of managers?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.