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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: A writes to B, ‘I offer to sell my house for 40,000. If I do not receive a reply by Monday next, I shall assume that you have accepted the offer’. Issue: Is there a valid contract between A and B? Decision:

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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: A writes to B, ‘I offer to sell my house for 40,000. If I do not receive a reply by Monday next, I shall assume that you have accepted the offer’. Issue: Is there a valid contract between A and B? Decision:





 
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