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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: 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:

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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: 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:





 
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