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Question 1:
Write brief notes on the following contractual terms:-
(a) How an offer differ from an invitation to treat. (b) The principles governing goods which are bought at auction. (c) The agreement between the parties when goods are bought by tender. (d) What is meant by consideration. (e) What is meant by an intention to create legal relations. (f) Termination of an offer. (g) The capacity of minors to enter into contractual agreement. (h) Misrepresentation by one party.
Question 2:
On the 01st of February 2009 Universal Books Ltd posted an offer to sell 1,000 sets of encyclopedias to the Ministry of Education for the price of Rs 1,000,000 and stated that the offer would remain valid up to 30st of March 2009. On the 10th of March 2009, Mr Luck the Permanent Secretary of the Ministry phoned Universal Books Ltd and asked whether the state would be allowed some credit facilities.
The manager of Universal Books Ltd replied that payment should be made cash on delivery. On the 1st of April Universal Books Ltd sold the consignment to a private school. On the 30th of March 2009 Mr Luck wrote to Universal Books Ltd and accepted the offer. The letter was received by Universal Books Ltd on the 2nd of April 2009 and the manager immediately phoned Mr Luck and informed him that the sets of encyclopedias had been sold and similar encyclopedias were not available. Advise the parties of their liabilities if any.
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