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: D offered to purchase a lodge owned by P for 6,000. He wrote to P’s agent asking whether his offer was accepted. He also added that he was ready to accept any higher price if found reasonable. The agent replied, ‘would not accept less than 10,000’. D accepted this and brought a suit for specific performance. Issue: Is P liable for specific performance? Decision: