Case: Col. D.I.Mac Pherson Vs. M.N. Appanna And Another

prepared as soon as possible."6. In the meantime, defendant 1 sent a cable to White to the following effect:"Accept rupees eleven thousand Morvern Lodge occupation permitted, when full amount deposited my account Mircantile Bank Madras inform Youngman."7. Thereafter, defendant 1 paid the amount of Rs, 11,000 and occupied the bungalow.8. The question to be decided in this Case is whether in view of the correspondence which has been reproduced, it could be held that there was a concluded contract for the sale of "Morvern Lodge" in favour of the plaintiff on the14th August, as stated by him in the plaint. The Judicial Commissioner of Coorg who tried the suit held that there was a concluded contract, but, instead of giving to the plaintiff a decree for specific performance, awarded a sum of Rs. 3,000 as compensation to him. Against this decree, defendant 1 alone has appealed, after obtaining a certificate under S. 109 (c), Civil P. C. from the Judicial Commissioner. The plaintiff has not preferred any appeal.9. The plaintiffs case is that the cable sent by defendant 1 on the 5th August, and received by Youngman on the 8th, to the effect that he would not accept less than Rs. 10,000, was a counter-offer made by him through Youngman to the plaintiff, and the contract was complete as soon as he accepted it. We however find it difficult to hold on the entire facts of the case that there was any concluded contract on 14-8-1944, and we are supported in this view by the well-known case of Harvey v. Facy,(1893) A. C. 552 : (62 L. J. P. C. 127), in which the facts were somewhat similar to those of the present case.In that case, the appellants had telegraphed to the respondents "Wil1 you sell us B. H.P.? Telegraph lowest cash price, and the respondents had telegraphed in reply. "Lowest price for B. H. P. ?900," and then the appellants telegraphed. "we agree to buy B. H. P. for ?900 asked by you. Please send us your title deed in order that we may get early possession,. but received no reply. On these facts, the Privy Council held that there was no contract, and Lord Norris, who delivered the judgment of the Board, observed as follows :"The third telegram from the appellants treats the answer of L. M. Facey stating his lowest price as an unconditional offer to sell to them at the price named. Their Lordships cannot treat the telegram from L.M. Facey as binding him in any respect, except to the extent it does by its terms, viz., the lowest price. Everything else is left open, and the reply telegram from the appellants cannot be treated as an acceptance of an offer to sell them ; it is an offer that required to be accepted by L. M. Facey. The contract could only be completed if L.M. Facey had accepted the appellants last telegram. It has been contended for the appellants that L. M. Faceys telegram should be read as saying yes to the first question put in the appellants telegram, but there is nothing to support, that contention. L. M. Faceys telegram gives a precise answer to a precise question, viz., the price. The contract must appear by the telegrams, whereas the appellants are obliged to contend that an acceptance of the first question is to be implied. Their Lordships are of opinion that the mere statement of the lowest price at which the vendor would sell contains no implied contract to sell at that price to the persons making the inquiry."10. The conclusion at which we have arrived is strengthened by certain facts which emerge from the correspondence between the parties.The real question is whether defendant 1 had made a counter offer in his cable of 5th August or he was merely inviting offers. The plaintiff in his letter of 14th August addressed to Youngman, stated that he confirmed his oral offer of ten thousand for the bungalow, and he did not say in so many words that he accepted the counter. offer of defendant1. Similarly, in the cable which Youngman sent to : defendant 1 on 28th August, he did not state that the latters offer had been accepted, but stated that he had been offered Rs. 10,000 for the bungalow and concluded with the words "May I sell?" Neither party thus treated defendant 1s cable as containing a counter-offer. On the other hand, they proceeded on the footing that the plaintiff had made an offer of Rs. 10,000 which was subject to acceptance by defendant1. Apparently, defendant 1 was in communication not only with Yonngman but also White, and both of them rightly thought that no transaction could be concluded without obtaining defendant 1s express assent to it.11. Mr. Jindra Lal, counsel for the plaintiff, who pressed his points with force and ability, contended that by 26-8-1944, Youngman had come under the influence of the rival bidder or at least that of White who was supporting him, and the cable to defendant 1 was deliberately framed by Youngman in such a way as to prejudice the plaintiff. There is however nothing in the evidence to support such an extreme conclusion. On the other hand, Youngman has frankly stated in his evidence that he felt it improper to entertain Subbayyas higher offer and did not communicate it to defendant1. This statement is supported by the cable of 26th August, and, if Youngman can be said to have had any leaning at all, it was certainly in favour of the plaintiff. In these circumstances, it would be difficult to hold that Youngman had deliberately misdescribed the plaintiffs acceptance of the counter-offer as his offer in the cable which he sent on 26th August to defendant 1.12. It seems to us that the view taken by the Judicial Commissioner is not correct, and, as there was no concluded contract, the decree passed by him awarding compensation to the plaintiff for breach of contract cannot be sustained.

Decision (1 = appeal accepted, 0 = rejected): 1

Explanation:
1[ds]The conclusion at which we have arrived is strengthened by certain facts which emerge from the correspondence between the parties.The real question is whether defendant 1 had made a counter offer in his cable of 5th August or he was merely inviting offers. The plaintiff in his letter of 14th August addressed to Youngman, stated that he confirmed his oral offer of ten thousand for the bungalow, and he did not say in so many words that he accepted the counter. offer ofSimilarly, in the cable which Youngman sent to : defendant 1 on 28th August, he did not state that the latters offer had been accepted, but stated that he had been offered Rs. 10,000 for the bungalow and concluded with the words "May I sell?" Neither party thus treated defendant 1s cable as containing a counter-offer. On the other hand, they proceeded on the footing that the plaintiff had made an offer of Rs. 10,000 which was subject to acceptance byApparently, defendant 1 was in communication not only with Yonngman but also White, and both of them rightly thought that no transaction could be concluded without obtaining defendant 1s express assent tothese circumstances, it would be difficult to hold that Youngman had deliberately misdescribed the plaintiffs acceptance of the counter-offer as his offer in the cable which he sent on 26th August to defendant 1.It seems to us that the view taken by the Judicial Commissioner is not correct, and, as there was no concluded contract, the decree passed by him awarding compensation to the plaintiff for breach of contract cannot be sustained