Bengal Coal Co. v. Homee Wadia & Co.

Citation: (1899) ILR 24 Bom 97

A agreed in writing to supply coal to B at certain prices and up to a stated quantity, or in any quantity which may be required for a period of twelve months, is not a contract unless B binds himself to take some certain quantity, but a mere continuing offer which may be accepted by B from time to time by ordering goods upon the terms of the offer. In such a case, each order given by B is an acceptance of the offer and A can withdraw the offer, or, to use the phraseology of the Act revoke the proposal, at any time before its acceptance by an order from B. Such a transaction may be reduced to a statement by the intending vendor in this form If you will send me orders for coal, I shall supply it to you for a period of twelve months at a particular rate.’ This is merely a proposal from A to B. If in reply to such a proposal, B says to A ‘I agree’, it does not constitute an acceptance of the proposal. An acceptance can take place only by B sending an order to A”.

Taken from Mrs. Chand Kunwar and Ors. v. State of Rajasthan