Ss. 2(a), 7 & 10---Offer, Acceptance and formation of a legally binding contract---Scope---- Plaintiff had contended that the defendant increased prices of items supplied to it despite the fact that there was a binding agreement between the parties wherein it was stipulated that the defendant would not increase prices more than a certain percentage for three years---Contention of the defendant was that there was no binding agreement between the parties and there existed only an understanding---Held, that perusal of letter written by plaintiff to defendant showed that the same was an offer and a subsequent letter which was written by the defendant was an acceptance letter, which created a binding contract between the parties---Defendant had not only accepted the offer but had also performed the conditions of the proposal by not increasing rates for two years, which established, that a valid contract had been concluded between the parties---Offer made by the plaintiff was accepted by defendant in absolute terms and also the benefit of the contract was extended to the plaintiff for a period of two years which itself showed that a valid contract in terms of section 10 of the Contract Act, 1872 had been executed between the parties---No illegality existed in the impugned order---Revision was dismissed. 2014 CLC 718 LAHORE-HIGH-COURT-LAHORE
Posted on: Sun, 27 Jul 2014 18:58:12 +0000
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