GROUP 7

PLAINTIFF

BBA LLB (3 SEMESTER) 2020-2021

IN THE DISTRICT COURT OF DELHI

HARSH ………………………………. Plaintiff

V.

ISHA ……………………………….. Defendant

ON SUBMISSION TO THE REGISTRY OF THE DISTRICT COURT OF DELHI

MEMORIAL DRAWN AND SUBMITTED ON BEHALF OF THE PLAINTIFF

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 TABLE OF CONTENTS

LIST OFABBREVATIONS................................................................... 3

LIST OF SOURCES .............................................................................. 4

STATEMENT OF JURISDICTION....................................................... 5

STATEMENT OF FACTS...................................................................... 6

STATEMENT OF ISSUES RAISED ..................................................... 7

SUMMARY OF ARGUMENTS ............................................................ 8

ARGUMENTS ADVANCED.................................................................. 9

PRAYER.................................................................................................. 14

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 LIST OF ABBREVATIONS

S.NO. HON`BLE HONORABLE

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 LIST OF SOURCES

STATUTES:

1. The Indian Contract Act, 1872

CASES:

1. Chapelton v Berry Urban District Council [1940]

WEBSITES:

1. https://indiankanoon.org/doc/339747/

2. https://www.legalmatch.com/law-library/article/breach-of-contract.html

3. https://indiankanoon.org/search/?formInput=sec+8+of+ICA

4. https://indiankanoon.org/search/?formInput=sec+4+of+ICA

5. https://indiankanoon.org/search/?formInput=revocation+of+offer
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 STATEMENT OF JURISDICTION

The Hon’ble Court of Delhi exercises jurisdiction to hear and adjudicate the present suit

because the parties reside in Delhi. Hence, the court will get territorial jurisdiction for the case.

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 STATEMENT OF FACTS

1. Isha has just bought a New Groceries retail shop and, anxious to please the locals, decides to put
an advertisement in the local paper stating that she will sell boxes of luxury Belgian chocolate
GODIVA at a discount price of Rs. 2500 Instead of the recommended retail price of Rs.5000.

2. It also states that there are only 50 boxes available. Isha has recently bought a laptop from her
son, Rohan to help with the running of the shop. The advertisement states that anyone wanting
the chocolate should contact isha in person at the shop or email her at isha@newshop.in.

3. The advertisement appears in the local paper on Saturday.

4. Harsh sees the advertisement at 4:30 P.M. on the Saturday afternoon and immediately sends an
e-mail to Isha ordering 6 boxes of the Godiva Chocolate. The email is received on Isha’s laptop
at 5:09 p.m. on Saturday.

5. On Saturday evening Isha realises that the discount was too generous as she is making no money
on the chocolate and people are not coming to the shop and buying lots of other groceries as she
has hoped.

6. She phones the local paper asking them to put notice in the next day informing people that the
discount price is no longer available. The Sunday paper is published at 9:00 a.m. on Sunday
morning and it is delivered to Harsh at 10:30 a.m.

7. Isha opens for business at 10:00 on Sunday. She reads Harsh’s email at 10:35 am but refuses to
sell him the chocolate. She replies stating that the discount is no longer available. Harsh sued Isha
breach of contract.

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 STATEMENT OF ISSUE RAISED

Issue 1- Whether the advertisement amounts to an offer or not?

Issue 2- Whether the proposal made by the plaintiff resulted in a contract or not?

Issue 3- Whether there was a breach of contract or not?

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 SUMMARY OF ARGUMENTS

Issue 1- Whether the advertisement amounts to an offer or not?

Generally, advertisements, catalogs, brochures, and announcements to the public related to the sale of
merchandise at a specified price are not considered offers to enter into a binding contract. But since it is
sufficiently definite in its term it can be considered as an offer and the intention of the advertiser to enter
into a contract is clear then the advertisement does amount to offer.

Issue 2- Whether the proposal made by the plaintiff resulted in a contract or not?

It is humbly submitted that since the advertisement constitutes a valid offer as it fulfils all the conditions
of a valid offer hence there is exists a contract because there needs to be an offer from one side which is
accepted by the other side, hence resulting in an agreement As. we know there has been agreement
between the plaintiff and the defendant, the proposal made by the plaintiff resulted in contract acc. to Sec
2(h) of the ICA ,1872.

Issue 3- Whether there was a breach of contract or not?

A breach of contract occurs when a party thereto renounces his liability under it, or by his own act
makes it impossible that he should his obligation under it or totally partially fails to perform such
obligation. In the present case the defendant refused to perform his liability against the plaintiff hence
there exists breach of contract.

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 ARGUMENT ADVANCE

Issue 1- Whether the advertisement amounts to an offer or not?

Sec 2 (a) of the ICA, 1872 defines proposal as,

“When one person signifies to another his willingness to do or to abstain from doing anything, with a view to
obtaining the assent of that other to such act or abstinence, he is said to make a proposal”.

In the view of the above definition, a proposal is: -

1. An expression of the offeror’s willingness to do or to abstain from doing something

The term ‘proposal’ used in the Indian Contract Act is synonymous with the term ‘offer’ used in English law.
An offer is a proposal while an invitation to offer (treat) is inviting someone to make a proposal. In an offer,
there is an intention to enter into a contract, of the party, making it & thus it is certain. When the offer is made
to a specific or an ascertained person it is known as a specific offer, but when the same is not made to any
particular person but to the public at large, it is known as general offer. This general offer can be accepted by
anyone. And the person who accepts this offer, generally by performing the conditions of the proposal, can
bind the persons making the offer.

Although advertisements usually aren’t legal offers but there are three elements that can make advertisement
an offer:

1. The advertisement incudes definite terms (e.g., descriptions, quality, quantity & price).
2. The advertisement targets a specific person or a limited group.
3. The circumstances of publication also make it clear the advertiser intended to offer a contract.

In the present case, the defendant has made an offer via advertisement. Also, the defendant in the
advertisement mentioned all the details & conditions about the purchase of boxes of luxury Belgian chocolate
GODIVA which was fulfilled by the defendant accordingly. Also, it was published in the local newspaper, so
it was only for the locals. And the circumstances also show that the intention of the defendant was to offer a
contract as the defendant clearly mentioned the fixed price with any confusion.

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 In case Chapelton v Berry Urban District Council [1940]1, there was a display of
deckchairs. On the face of it there would have been an invitation to treat, but here the display of deckchairs
for hire on the beach constituted an offer which could be accepted by taking a chair and sitting on it.

The key factor here was that there was that all the terms of the offer were clear before/ at the time
of taking the chair, so no further discussions were required and by conduct that is taking the chair,
acceptance took place.

Similarly, in the present case the defendant made an offer by clearly stating that she will sell boxes
of luxury Belgian chocolate at a discount price of Rs. 2500 and also stating the availability of those
boxes. Therefore, all the terms of a valid offer here are fulfilled.

So, it is thereby concluded that the advertisement amounts to an offer.

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[1940] 1 KB 532

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 Issue 2- Whether the proposal made by the plaintiff resulted in a contract or not?

It is humbly submitted that there does exist a valid contract between Isha and Harsh, as the acceptance as been
transmitted by the Plaintiff.

Sec 2(b) of the Indian contract Act, 1872, has defined acceptance of a proposal as:

“When the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted.
A proposal, when accepted, becomes a promise”.

Since it has been proved that the advertisement made by the defendant is to be treated as an offer then the
order placed by the plaintiff through an email is an acceptance to that offer.

In the case of Carlill v. Carbolic Smoke Ball Co2. it was held that in case of a general offer there is no need
for communication of acceptance, anyone who performs the condition of the contract is said to have
communicated his/her acceptance, and in the given scenario the condition was to contact the defendant in
person or email her which was completed by the plaintiff.

Sec 4 of the Indian Contract Act, 1872, says that:

“The communication of an acceptance is complete, — as against the proposer, when it is put in a course of
transmission to him so as to be out of the power of the acceptor; as against the acceptor, when it comes to the
knowledge of the proposer.”

Communication via mail is considered a form of instantaneous communication. The time of receiving
of the message & the time at which the offeror gets the knowledge of the message may differ. Therefore, the
communication is said to be complete when the offeror receives the message & as is evident in the facts of the
case the mail of acceptance was received by the defendant at 5:09 pm on the same day the order was placed
by the plaintiff before the revocation of the offer.

Placing reliance on the judgment of the Supreme Court in Bhagwandas Goverdhandas Kedia v. Girdharilal
Parshottamdas3, where it was held that in case of telex, the normal rule would apply & the contract would
be completed only when the acceptance was received by the offeror, similarly in the present case defendant
is also liable to bound to make perform his obligation towards the plaintiff.

2
1893)1 Q.B. 256 at 268.
3
A.I.R. 1966 S.C. 543
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In the case of Philp and Co v Knoblauch4 a merchant (plaintiff) wrote to a firm of oil millers (defendant), “I
am offering today plate linseed for January-February shipment to Litth and have pleasure in quoting you 100
tons at usual plate terms. I shall glad to hear if you will buy and await reply”. The oil miller telegraphed the
next day: “Accept”, and confirmed it by letter. It was held that the letter by the plaintiff has all the
characteristics of a valid offer and the contract was concluded by the defendant by the telegram.

So as per the facts it is clear that the acceptance of the offer was send by the plaintiff at 4:30 P.M on Saturday
which is before it has been revoked by the defendant, so it is binding against the defendant and resulted in
contract so she is liable to acknowledge the order.

4
44 SLR 666
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 Issue 3- Whether there was a breach of contract or not?

A breach of contract occurs when a party thereto renounces his liability under it, or by his own act makes

it impossible that he should his obligation under it or totally partially fails to perform such obligation. In

the present case the defendant refused to perform his liability against the plaintiff hence there exists

breach of contract.

Acc. to sec 39 of ICA-

“Effect of refusal of party to perform promise wholly. —When a party to a contract has refused to
perform, or disabled himself from performing, his promise in its entirety, the promisee may put an end to
the contract, unless he has signified, by words or conduct, his acquiescence in its continuance.”

In the present case, there is an existence of a valid contract between the plaintiff and defendant. There

occurs a contract between the parties when the defendant put a general offer to the public at large and

when the same was accepted by the plaintiff through an email as mentioned in the advertisement.

After the plaintiff accepted the offer and communicated the same to the defendant, the defendant refused

to sell the chocolate to the plaintiff at the discounted price claiming the offer to have expired. However,

the plaintiff had placed the order before the expiration of the discount and thus bounds the parties into

contractual obligations.

The defendant failed to fulfil the contractual obligations as he didn’t deliver the chocolates to the plaintiff

and thus amounts to breach of contract. The defendant was bound by the contract after the offer was

accepted by the plaintiff and thus it amounts to the breach of contract by the defendant.

Also:-

Acc. Sec 73 of the Act provides that "When a contract has been broken, the party who suffers by such
breach is entitled to receive, from the party who has broken the contract, compensation for any loss or
damage caused to him thereby, which naturally arose in the usual course of things from such breach, or
which the parties knew, when they made the contract, to be likely to result from the breach of it. Such
compensation is not to be given for any remote & indirect loss of damage sustained by reason of the
breach".

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In Hadley vs Baxendale5, it has been held, “Where two parties have made a contract which one of them has
broken, the damages which the other party ought to receive in respect of such breach of contract should be
such as may fairly and reasonably be considered either arising naturally, i.e., according to the usual course
of things, from such breach of contract itself, or such as may reasonably be supposed to have been in the
contemplation of both the parties, at the time they made the contract, as the probable result of the breach of
it.”

So, in the present case the defendant has failed to deliver the chocolates at the discounted price to the
plaintiff & is thus liable to pay damages. The plaintiff is entitled to recover from the defendant the
chocolates at the discounted rate in the form of compensation.

5
(1854) 9 Ex. 341, at 354
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 PRAYER

In the light of the issues raised, arguments advanced & the authorities cited, the counsel for the plaintiff
humbly prays to the Hon’ble court to relieve the plaintiff by making defendant liable to-

1. Pay considerable damages to the plaintiff.

2. And pass any order that this Hon’ble court may deem fit in the interest of justice, equity and good

conscience.

And for the act of kindness, the counsel for the plaintiff shall duty bound forever.

Respectfully submitted Place - New Delhi

Date- 10th December,2020

Hridya

Isha

Aditya

(Signature of the counsels for the plaintiff

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