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    Question

    In the case of Harvey v. Facey it was held that_______________

    A Mere reply of a query is not an acceptance Correct Answer Incorrect Answer
    B Importance of consideration as an essential element for a contract. Correct Answer Incorrect Answer
    C For an acceptance to be valid, it is necessary that it must be communicated to the offeror either by the offeree or by some duly authorized person on his behalf Correct Answer Incorrect Answer
    D Intention to enter into a contract is necessary for a binding and legally enforceable contract Correct Answer Incorrect Answer

    Solution

    It was observed by the Privy Council that there never existed an agreement between the parties to the case and it also stated that for a contract to be a valid one, a proposal and the acceptance of the proposal are needed so as to make the contract binding on the parties. Mere reply of a query is not an acceptance. Apart from this, the acceptance of the proposal must be notified to the individual who is making the proposal because a legally enforceable agreement requires certainty to hold from both the parties to the contract.

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